Local govt want to acquire more shares in Newmont

The government of West Nusa Tenggara (NTB) has reaffirmed its interest in acquiring the final seven percent stake to be divested by copper and gold miner PT Newmont Nusa Tenggara (NNT), The Jakarta Post reported Wednesday.

The governor had sent a letter to the central government asking for permission to buy the shares, but no response had been issued so far, provincial legislative council chairman Lalu Sujirman said Tuesday.

?The people of West Nusa Tenggara hope that the final seven percent stake can be sold to the people through the local administration,? he told a press conference at Century Athlete Hotel in Jakarta.

Finance Minister Agus Martowardojo said last week that the central government was interested in acquiring the seven percent stake. The Ministryhad formally sent a letter to the minister of energy and mineral resources expressing the government?s interest.

Newmont and the energy ministry had also confirmed that they had received the finance minister?s letter on the government?s interest to buy the shares.

The ministry and NNT?s foreign shareholders had agreed to fix the price of the seven percent stake at US$271.6 million.

The local government has set up a joint venture with PT Multi-capital, a subsidiary of coal giant PT Bumi Resources, called PT Multi Daerah Bersaing (MDB). NNT?s foreign shareholders have so far sold 24 percent of the shares to the joint venture.

Lalu said that the dividend of the current 24 percent ownership in NNT contributed between Rp 65 billion (US$7.2 million) and Rp 85 billion per year to local revenues. The government also received between Rp 25 billion and Rp 35 billion in royalties. (*)