Bumi eyes Newmont Nusa Tenggara shares

JSX-listed PT Bumi Resources, a mining company affiliated with Bakrie Group, has been cited as a potential company eager to buy shares in PT Newmont Nusa Tenggara (NNT) through PT Gerbang Emas, a provincial company owned by the West Nusa Tenggara administration, Koran Tempo reported Tuesday.

?This has not yet been officially agreed. The scheme and sharing of the funds will be decided later,? said Assistant II Secretary of West Nusa Tenggara administration.

According to him, Bumi Resources would be involved (in buying NNT?s shares) because the company has experience and competency in mining sector.

Bumi Resources?s senior vice president for investor relations Dileep Srivasta did not provide information on the company's plan to buy shares in NNT but acknowledged that the company had been involved in planning to set up a company partly owned by the West Nusa Tenggara provincial administration.

The daily also said that the West Sumbawa regency and the West Nusa Tenggara provincial administration have signed a memorandum of understanding (MoU) on the establishment of consortium of regional companies. The establishment of the consortium is linked to the plan to purchase shares in NNT.

Earlier, Newmont Mining Corp and other foreign owners are selling a combined 3 percent stake in NNT to local firm PT Trakindo Utama for about $100 million, the sources told Reuters in Dec 15, 2006.

In September 2006, the administration of West Sumbawa regency has said it is ready to buy a 3 percent stake in NNT, which offered the shares as part of its divestment program for US$109 million.

NNT is obliged to divest 3 percent in 2006, as local company PT Pukuafu Indah (PI) has already controlled 20 percent of NNT?s shares. The 51 percent divestment is expected to be completed in 2010. (*)