BKPM says local government agree to buy 10 percent stake in Newmont
Wednesday, January 16 2008 - 02:58 AM WIB
Facilitated by the Investment Coordinating Board (BKPM), Newmont representatives and official from three local administrations met on Tuesday to settle their differences over the divestment process.
BKPM's head Ahmad Luthfi said that NNT agreed in the negotiation that the transaction of NNT?s would be made under business to government scheme.
?The divestment process has been running in compliance with the contract. The three administrations have expressed their readiness to buy the 10 percent stake. To comply with the contract, the divestment is expected to be wrapped up in January, 2008,? he said.
Meanwhile, Newmont spokesman Martiono Hadianto declined to provide any details.
Under the agreement, the West Sumbawa regency will purchase a 3 percent stake worth US$109 million that should have been divested in 2006. While, the West Nusa Tenggara provincial government and Sumbawa regency will share the ownership of NNT?s 7 percent stake worth $282 million that should have been divested in 2007.
The prices were based on the previous negotiations between the central government and Newmont.
NNT, which obtained its contract of works to operate a copper and gold mine in Batu Hijau, West Nusa Tenggara in 1986, is required to divest up to 51 percent of its shares to the government or Indonesian companies by 2010. By March 2008, the company should divest 10 percent of its shares as part of the mandatory divestment program.
Currently, NNT?s shareholders are Newmont Mining Corp (45 percent), local company PT Pukuafu Indah (PI) which controls 20 percent and a consortium led by ?s Sumitomo (35 percent). (*)