Govt studying seven percent Newmont stake offer

The Ministry of Energy and Mineral Resources is currently examining the price of seven percent stake offered by the PT Newmont Nusa Tenggara (NNT), a subsidiary of US-based giant miner Newmont Mining Corp., Koran Tempo reported Monday.

Director of geothermal and coal mineral business development M.S. Marpaung said that NNT had informed about its asset value for 2007, which was US$4.6 billion.

?We are currently evaluating it. We are re-recounting (the price) to clarify the asset value,? he said.

The price of the seven percent, he said, would be calculated on the basis of $4.6 billion.

According to Marpaung, after the government clarifies the price, an offer will be made to the central government. If the central government refuses to buy the stake, then it will be offered to the provincial administration.

Earlier, Marpaung, said that NNT?s seven percent stake would be offered from March 2007 until March 2008.

Ministry of Energy early set a target until February 2007 for completing the process of buying three percent in NNT?s stake, but the process has yet to be completed.

NNT, which obtained its contract of works to operate a copper and gold mine in Batu Hijau, West Nusa Tenggara in 1986, is required to divest up to 51 percent of its shares to local investors by 2010. By March 2008, the company should divest 10 percent of its shares as part of the mandatory divestment program.

Current NNT?s shareholders are Newmont Mining Corp (45 percent), local company PT Pukuafu Indah (PI) which controls 20 percent and a consortium led by Japan?s Sumitomo (35 percent). (*)