Progress made in KPC divestment

Progress made in KPC divestment

JAKARTA: Shareholders of coal mining company PT Kaltim Prima
Coal (KPC) -- Anglo-Australian mining giant Rio Tinto Plc and
Anglo-American energy firm BP Plc -- have reportedly made some
progress in talks with the government over the coal company's
divestment.

KPC said in a statement on Thursday that both parties had
agreed on a number of principles this week, and formal
documentation for final agreement was being prepared.

Under its contract of work, KPC's shareholders should have
sold 51 percent of the company to either the government, state-
owned companies, Indonesian-controlled private firms or
Indonesian nationals last year. But the company's shareholders
and the government agreed to delay the sale until the end of this
month.

KPC noted, however, that its shareholders would not be able
the sell their stake by the deadline unless the South Jakarta
District Court revoked its sequestration order. The court put
KPC's assets in sequestration at the request of the East
Kalimantan provincial government, which is seeking to take
control of the 51 percent stake. --JP