Province 'drops' lawsuit against KPC

Province 'drops' lawsuit against KPC

JAKARTA: East Kalimantan provincial government has dropped part of its legal case to take over PT Kaltim Prima Coal, in a move toward ending a messy ownership dispute over the nation's most profitable coal mine.

But Anglo-Australian mining company Rio Tinto PLC, which owns Kaltim Prima in a joint venture with BP PLC, said Thursday that it wouldn't sell a majority stake in the mine until East Kalimantan removes all legal action against the company.

In a newspaper advertisement Thursday, the provincial government's lawyers said they had instructed the court to remove the attachment orders on the shares. But the lawyers said East Kalimantan will continue to pursue its lawsuit against Kaltim Prima for failing to sell it the stake.

Rio Tinto's Indonesia President Lex Graefe said Kaltim Prima wouldn't proceed with any sale until East Kalimantan removes its lawsuit.

"The offers won't be made until all litigation is removed," Graefe said -- Dow Jones