Cemex has not dropped arbitration option

Cemex has not dropped arbitration option
Published: 28 January 2005

Cemex SA has suspended temporarily but not withdrawn the arbitration case over a failed put option deal involving a 51 per cent stake in PT Semen Gresik, as ongoing negotiations with the Indonesian government seek to reach an agreement by February 28, State Enterprises Minister Sugiharto said. "We knew from the start that Cemex are not willing yet to withdraw the arbitration. But they have temporarily suspended the arbitration proceedings to show their good faith. The process is still far from over," Sugiharto said. The government was expecting to sign a memorandum of understanding with Cemex on January 25 but has now postponed it. Cemex also said that it has yet to reach an agreement with the Indonesian government but hopes a deal can be reached by February 28.