Govt has no interest in buying 3 percent shares in NNT
Thursday, September 28 2006 - 01:20 AM WIB
Director General for Minerals, Coal and Geothermal Affairs at the Ministry of Energy and Mineral Resources Simon Felix Sembiring said in Jakarta Wednesday that the letter was issued by the Finance Ministry last week.
?The Finance Ministry has said in the letter that the government has no interest in buying (the shares). The letter was issued last week,? said Simon following a talk with the House of Representatives? Commission VII on mineral and coal issues on Wednesday.
According to Simon, buying 3 percent shares in PT NNT is not the government?s priority.
He said that if both the provincial and regency administration had a keen interest in buying the shares, then they could join and form a consortium.
The administration of Sumbawa Barat regency said earlier that it was ready to buy a 3 percent stake in PT Newmont Nusa Tenggara (NNT), which offered the shares as a part of its divestment program for US$109 million.
Sumbawa Barat administration?s legal representative Ryad Areshman Chairill said that the regency entered into negotiations with several banks and financial institutions from both at home and overseas countries to form a consortium to secure the money.
Under the contract of work (CoW), foreign shareholders of NNT are obliged to gradually divest at least 51 percent of NNT?s shares to Indonesian government or Indonesian owned entities, starting with 15 percent 5 years after commercial operations (2005) and 8 percent the following year (2006).
NNT is only obliged to divest 3 percent this year as local company PT Pukuafu Indah (PI) has already controlled 20 percent of NNT?s shares. PI is controlled by Jusuf Merukh Family. The 51 percent divestment is expected to be completed in 2010.
Current foreign shareholders are Newmont Mining Corp (45 percent) and a consortium led by Japan?s Sumitomo (35 percent). (godang)