Kingsrose allowed to defer start of divestment process
Thursday, March 8 2012 - 11:54 AM WIB
Australia-listed miner Kingsrose Mining Ltd said it had received a letter from the Energy and Mineral Resources Ministry allowing it to defer the commencement of divestment in its Indonesian unit from March 2012 to March 2013.
Kingsrose owns 85% of PT Natarang Mining (PTNM), the holder of a fourth generation Contract of Work over the gold and silver Way Linggo Project in Sumatra. Under regulations limiting foreign ownership of mines, the firm is obligated to divest its ownership of PTNM down to 49% over a certain period of time.
Previously, the Ministry had stated that divestment should take place over four years starting March 2012 (Offer Date) by the offering for sale of a 15% share tranche, but ?on January 15, 2012, written notification was received from the Ministry advising PTNM that the Offer Date has now been deferred from March 2012 to March 2013.?
The company ?believes that by the Ministry granting the above-mentioned deferral it will allow the parties to continue discussions aimed at reaching an acceptable outcome.?
Editing by Dadan Wijaksana