PT Rio Tinto clarifies

PT Rio Tinto clarifies

I am writing regarding your series of articles on the
divestment of PT Kaltim Prima Coal (KPC), the latest of which
appeared in the Dec. 4 issue titled Government urged to speed up
KPC divestment.

The article says the East Kalimantan administration gets first
priority for buying shares, as KPC's vast mining site is located
in Sangatta.

While KPC shareholders -- namely, Rio Tinto and BP -- welcome
Pemprov Kaltim's intention to be a potential shareholder in KPC,
the same opportunity is available for other potential buyers,
too.

Article 26 of the Coal Agreement (PKP2B) provides no priority
or exclusivity to whom the KPC shares should be offered.

It is also incorrect that the East Kalimantan administration
is the only party to bid for the shares. KPC has been contacted
by many other Indonesian participants seeking consideration as
possible buyers.

LEX GRAEFE

President Director

PT Rio Tinto Indonesia

Jakarta

Note: Thank you for your correction.

-- Editor