Cemex ready to discuss arbitrage cancellation

Cemex ready to discuss arbitrage cancellation
Published: 16 June 2006

While rejecting the requirement of the Minister of SOE Sugiharto, to reconsider the sale of its stake to the Rajawali Group, Cemex Asia Holdings  said the company is ready to discuss the cancellation of arbitrage and other legal action the company has taken.  The company expressed such readiness by sending a letter on June 14, signed by the Director of Cemex Hector Medina, in respond to the SOE Minister’s letter on May 25.  
 
On his latest letter, the SOE Minister asked Cemex to reconsider the rejection over the right of first refusal by the government on Cemex plan to sell its interest on Semen Gresik to a local private company, the Rajawali Group.  The minister also asked if Cemex is ready to discuss it as well as the possible revocation of the arbitrage process at the International Centre for Settlement of Investment Disputes (ICSID).  
 
Cemex said it could not meet the government’s requirement as the government’s refusal was different to the one on the conditional sale and purchase agreement (CSPA) signed by the two parties in 1998.  The company also has refused the minister’s requirement as the company has got the trustworthy bid from Rajawali Group. (original report Bisnis Indonesia)