Govt files arbitration against Newmont

The government has filed a request for arbitration against PT Newmont Nusa Tenggara (NNT), the subsidiary of American mining giant Newmont Corp., threatening to revoke its contract following its failure to meet its contractual divestment obligation.

?The arbitration request was filed at 1.20 p.m. today (Monday) with the international arbitration court,? Director General of Mineral, Coal and Geothermal Resources at the Ministry of Energy and Mineral Resources Simon F. Sembiring said on Monday.

The arbitration request was filed with the United Nations Commission on International Trade Law (UNCITRAL).

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said NNT?s failure to carry out its divestment obligation was a ?fatal mistake?.

?We shall terminate its contract once the arbitration panel decides (on favor of the Indonesian government),? Purnomo said. (Godang)