KPC, govt agree to delay divestment<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
JAKARTA: Coal mining company PT Kaltim Prima Coal (KPC) and
\nthe government have agreed to extend to July 31 the deadline for
\nthe divestment of a 51 percent stake in the company.<\/p>\n
Under a previous agreement with the government, KPC was to
\nhave sold the 51 stake by the end of June.<\/p>\n
KPC, which is equally owned by Anglo-Australian mining giant
\nRio Tinto and Anglo-American energy firm BP Plc, operates a large
\ncoal mine in Sangatta, East Kalimantan. Under its contract with
\nthe government, the firm must sell 51 percent of its shares to
\neither the Indonesian government, state-owned companies,
\nIndonesian-controlled private firms or Indonesian citizens after
\n10 years of production.<\/p>\n
KPC said in a statement the price for all its shares remained
\nunchanged at US$822 million, as earlier agreed upon by the
\ncompany and the government.<\/p>\n
It did not mention the price for the 51 percent stake, but it
\nearlier said the stake was valued at $419 million.<\/p>\n
The East Kalimantan provincial administration has been
\naggressive in its efforts to secure the 51 percent stake, but the
\nprice it offered was judged unreasonably low by KPC. This
\ndisagreement over the price has led KPC to delay the divestment
\nof the stake several times.<\/p>\n
The provincial administration has filed a lawsuit against the
\ncompany on charges of purposely delaying the divestment. The
\nSouth Jakarta District Court has sequestered KPC's assets at the
\nrequest of the province.<\/p>\n
KPC noted that it would not sell its shares unless the
\nprovince revoked the litigation.<\/p>\n
\"KPC will make its 2001 share offer subject to the removal of
\nthe litigation and the signing of the formal agreement with the
\ngovernment of Indonesia,\" the company said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kpc-govt-agree-to-delay-divestment-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}