Medco completes acquisition of Newmont Nusa Tenggara

IDX-listed energy company PT Medco Energi Internasional Tbk said it has finally completed the acquisition of a 50 percent stake in PT Amman Mineral Internasional, which controls 82.2 percent of gold mining firm PT Newmont Nusa Tenggara (NNT).

The company said in a statement on Wednesday the transaction which was first announced on June 30, 2016, has received all related regulatory approvals as well as Medco Energi shareholder approval.

NNT operates the world class Batu Hijau copper and gold mine on the Island of Sumbawa, Indonesia and has access to a several exploration prospects as well as the large undeveloped Elang discovery within its Contract of Work. In 2015, production from Batu Hijau, reached 240 million lbs of copper and 0.3 million oz of gold.

?This acquisition is immediately accretive and indeed marks a monumental milestone for Medco Energi ? Given NNT?s world-scale operations, the company is underway in its transformation from being world-class to world-scale,? said Medco Energi President Director Hilmi Panigoro in the statement.

MedcoEnergi together with AP Investment joined forces last year for the transaction and received positive support from the three largest state-owned banks. AP Investment is led by Agus Projosasmito, Indonesia?s seasoned investment banker and former President Director of Danareksa Securities.

Editing by Reiner Simanjuntak