Minister says better to takeover Newmont shares soon

By Bambang Atmaja

Minister of Energy and Mineral Resources Jero Wacik said that he preferred for the final divestment of shares in gold and copper mining firm PT Newmont Nusa Tenggara (NNT) to be concluded soon rather extending the sales and purchase agreement (SPA) again.

The shares ?must be taken over as soon as possible. The faster the takeover is the better,? Jero told Petromindo.com on Friday at the State Palace.

When asked on whether who should acquire the shares, the central or regional government, he said: ?It doesn?t matter whoever is capable of buying the shares.?

NNT, the local subsidiary of US-based Newmont Mining Corp, has been required to divest up to 51 percent interest to local investors. The company is currently in the process of divesting the final 7 percent stake.

While the central government holds the first right to acquire the stake, lawmakers have been supporting the West Nusa Tenggara provincial administration to acquire the stake.

The Central Government Investment Center, or better known as PIP, first signed a sales and purchase agreement (SPA) for the acquisition of the 7 percent stake in NNT in May 2011. But since then, the SPA has been amended for seven times due to various obstacles in concluding the transaction, the last being made in July of 2013, with a deadline for concluding the transaction set for January 24, 2014.

PIP Head Soriaton Siregar said in January of this year that his office may have to seek for another extension of the deadline.

Editing by Reiner Simanjuntak