Energy Ministry claims it has settled Newmont divestment

The Energy and Mineral Resources Ministry said it had settled all the obligation it had to fulfill related to the divestment of a 7 percent stake in PT Newmont Nusa Tenggara (PTNNT) which has drawn the public controversy because the finance ministry?s plan to buy the shares has been opposed by not only the West Nusa Tenggara provincial administration but also some members of the House of Representatives.

The Energy and Mineral Resources Ministry said in a statement that all the administration requirements for the divestment of the Newmont shares had been fulfilled with the issuance of a letter by the Director General of Mineral and Coal on May 18.

It said through the letter, which was issued based on the article 24 in working contract with Newmont, the ministry stated its approval on the divestment of the Newmont shares. The ministry said that it had also issued a guideline to Newmont on how to meet the requirements needed for the divestment of Newmont shares.

Finance Minister Agus Martowardojo had earlier asked the energy ministry to issue a recommendation on the divestment of Newmont shares. The recommendation is needed to enable the ministry to settle the transaction for the US$246.8 million divestment.

Definitive agreement was signed on Friday, May 6, 2011 between Newmont Corporation and the Finance Ministry for the sale and purchase of the final 7% divestiture stake in PTNNT, as required under the terms of PTNNT's contract of work with the Indonesian government. (godang/giok)