Medco wants Amman to launch IPO

Petromindo|Khalsa

IDX-listed energy company PT Medco Energi Internasional Tbk will push gold and copper mining firm PT Amman Mineral Nusa Tenggara (AMNT), formerly known as PT Newmont Nusa Tenggara (NNT), to sell shares to the public via initial public offering (IPO), Kontan reported on Monday.

The paper quoted Hilmi Panigoro, President Director of Medco, as saying that the IPO is expected to be launched in 2018 at the soonest. He said that through the IPO, the company will be able to raise proceeds to finance a number of acquisitions as part of expansion programs. No further details were provided.

Medco completed early in November of this year the acquisition of 50 percent shares in PT Amman Mineral Internasional, immediately after the latter acquired 82.2 percent shares in NNT, whose name was later changed into AMNT. NNT was previously controlled by US-based Newmont Mining Corp.

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.

The IPO plan comes as the government is considering to allow mining firms, controlled by foreign investors, to implement their mandatory divestment program via IPO mechanism. (*)