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