Mitsubishi & KPC-Arutmin

One investment banker close to PT Bumi Resources Tbk told me this morning that Japan's Mitsubishi Corp is almost close the deal to buy 30% shares of two coal mining subsidiaries PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia for USD1 billion. But one of the shareholders denied that. "We're working on the proposals," he said. Mitsubishi is KPC's marketing agent for coal export to Japan while Glencore International handles non-Japan market. Meanwhile BHP Billiton is Arutmin's agent for export market. BHP and India's Tata are competing with Mitsubishi in the divestment of KPC and Arutmin shares.

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