Central govt finally owns 7% Newmont's stake

The government signed an agreement with copper and gold miner PT Newmont Nusa Tenggara (NNT) valuing the firm?s 7 percent final divestment shares at US$246.8 million, nearly 10 percent off the offer price of $271.6 million.

State investment agency PIP chairman Soritaon Siregar on Friday signed the agreement with NNT president director Martiono Hadiyanto and the representatives of US mining giant Newmont Mining Corporation (NMC) and Sumitomo?s Nusa Tenggara Mining Corporation (NTMC) as shareholders of the firm, which runs a giant copper and gold mine Batu Hijau.

The executives and government officials did not elaborate on the pricing process, but Martiono claimed ?everything has been done accordingly?.

Following the agreement, NNT is now 49 percent owned by foreign firms NMC and NTMC and the remaining 51 percent by local parties: the PIP (7 percent), Pukuafu Indah (17.8 percent), Indonesia Masbaga Investama (2.2 percent) and Multi Daerah Bersaing, a joint venture between Bakrie Group?s Multicapital and the West Nusa Tenggara provincial administration, which owns the remaining 24 percent.

?Local ownership [of the mine] stands a 51 percent, a great composition. The government, along with the other local owners, will make the foreign partners proud,? Finance Minister Agus Martowardojo said at the signing ceremony at his office in Jakarta.

?The government?s 7 percent share will be used to develop NNT?s business toward becoming a world-class company with good governance and added value for the country, environment and stakeholders.?

The sale was made despite protests from the West Sumbawa and West Nusa Tenggara administration.

?Companies don?t have the luxury of choosing which shareholder they prefer. This is the government?s policy,? Martiono said after the signing event.(*)