Bumi unit named as local government partner to acquire Newmont shares
Monday, July 13 2009 - 01:30 AM WIB
The governments of West Nusa Tenggara and the districts of West Sumbawa and Sumbawa jointly established PT Daerah Maju Bersaing to buy shares of NNT, a local unit of US-based Newmont Mining.
Multicapital will provide Rp 3 trillion in cash to acquire the 10% NNT stake. The company will remain a partner until the consortium acquires up to a 31% stake in NNT.
Bumi is controlled by the family of tycoon and politician Aburizal Bakrie.
Heryadi Rachmat, the head of the West Nusa Tenggara provincial mining department, said Multicapital was chosen because of its experience in the mining sector, its corporate social responsibility programs and the revenue split it offered.
Six companies were reportedly considered to finance the consortium?s bid, including UK-based Amstelco, Valco Corporation, Media Group, PT Sinar Tambora Rinjani.
On Sunday, DMB president director Andy Hadianto told the Jakarta Globe in an interview that DMB and Multicapital would seek to acquire a 31 percent stake in NNT that Newmont Mining is required by law to divest.
In a memorandum of understanding signed on Saturday, he said, the consortium and Multicapital agreed to split revenue from the stake 25 percent to 75 percent, respectively. However, the agreement will be nullified if Multicapital fails to draw up a contract within 14 days, he said.
?The contract will also state that the joint venture intends to acquire all of the shares that Newmont has to divest,? he said. ?We are also interested in developing other Newmont concession areas (other than the main Batu Hijau mine), including Elang and Section 7.?
NNT?s primary business is operating in Batu Hijau in West Sumbawa, West Nusa Tenggara. (*)