Kaltim Prima Coal to float shares on Jakarta exchange

Kaltim Prima Coal to float shares on Jakarta exchange

JAKARTA (JP): PT Kaltim Prima Coal, a coal mining company wholly owned by foreign investors, plans to float shares on the Jakarta Stock Exchange (JSX) to meet the government's requirements on divestment programs, a company executive said.

John Slater, managing director of the company, said yesterday that PT Kaltim Prima Coal, equally owned by the British Petroleum Company and CRA Limited of Australia, is required to divest at least 15 percent of its equity to local investors, beginning next year.

The share divestment is in line with the contract agreement with PT Tambang Batu Bara Bukit Asam, the state-owned company assigned by the government to control coal mining in Indonesia, he said.

"The divestment is common to many foreign business ventures in Indonesia," he told The Jakarta Post.

He said the size of the floatation is yet to be determined, while the timing of the offer will depend upon market conditions.

PT Kaltim Prima Coal, which bases its mining operation in East Kalimantan, started commercial production in 1992 and has the rights to operate for 30 years.

If the share floatation plan is realized, PT Kaltim Prima Coal, which last year produced about 10 million tons of coal, will be the first coal mining firm to be listed on the local capital market.

Slater said that PT Kaltim Prima Coal markets its coal products worldwide, in such countries as Japan, Taiwan, Hong Kong, the United States, Australia and Britain.

He said their production is approximately one-third of Indonesia's total coal output, while its exports contribute to about a half of the country's total coal exports.(hen)