MINING COMPANIES URGED TO BUY FREEPORT SHARES

Jakarta, March 5 (ANTARA) - The ministry of state enterprises is urging mining companies PT Aneka Tambang and PT Tambang Batubara Bukit Asam Tbk. to buy the government's 9.3 percent shares in copper and gold mining firm PT Freeport Indonesia.

"We will make an offer for state-owned mining companies such as Aneka Tambang and Bukit Asam to enter there," State Enterprises Minister Mustafa Abubakar said at his office here on Friday.

He said his office as the holder of Antam and Bukit Asam shares could only make suggestions to them to enter Freeport.

"If according to their study it is impossible to do that, well we will return the shares," he said.

The minister admitted that the purchase plan on Freeport shares by the government still needed further study. "It is still being studied whether or not it would buy them," he said.

He said if the government finally decided to buy the shares it would give state-owned companies an opportunity to invest there.

"As soon as the time comes to release the shares, they will first be offered to the government in line with regulations," he said.

It has been reported that Antam intends to buy 9.36 percent of PT Freeport Indonesia shares belonging to the government which are estimated to be worth US$1 billion.

The shares held by PT Indocopper Investama totalling 9.36 percent would also be sold.

Mustafa said the government is currently preparing a figure to be posted in the board of directors at PT Freeport Indonesia.

"Who he is, we are still seeking the best to represent the government in Freeport," he said.

The government, he said, would certainly take the offer to post its representative in one of the world's largest gold mining companies and use the opportunity as best as possible.

By having a representative there the distance between the Indonesian government as a minority shareholder with the majority shareholder in Freeport would be closer, he said.