Bumi, NTB administration sign MoU on the purchase of NNT's stake

JSX-listed Bumi Resources Tbk, a mining company affiliated with Bakrie Group, has signed a memorandum of understanding (MoU) with West Nusa Tenggara (NTB) provincial and West Sumbawa regency administration on the planned purchase of three percent stake in PT Newmont Nusa Tenggara (NNT) by local administrations.

The MoU was signed by West Nusa Tenggara Governor Lalu Serinata and West Sumbawa Regent Djamaludin Malik and Bumi's president director Ary S. Hudaya on Friday.

Under the MoU, Bumi will pay all of the shares purchased by local administrations, according to Djamaludin.

Bumi and local administrations will own three percent stake in NNT to be sold under mandatory divestment program. Of the three percent divestment program, 85 percent will go to Bumi and the remaining 15 percent is owned by local administrations.

Meanwhile, the Energy and Mineral Resources Ministry's director of development geothermal, coal and mineral resources business MS Marpaung said, "I have heard that Bumi has signed an agreement with West Sumbawa regent on the establishment of a consortium of regional companies linked the plan to purchase shares in NNT. But I do not know the detail," he told Petromindo.com.

Earlier, The West Sumbawa administration had expressed its readiness to purchase three percent stake in NNT, which was offered as part of NNT's mandatory 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. (godang)