Ministry's press statement regarding Newmont arbitration ruling

(The following is the translation of the press statement issued by the Ministry of Energy and Mineral Resources on the arbitration ruling regarding the divestment of shares in PT Newmont Nusa Tenggara)

Based on the arbitration process regarding dispute over the divestment of shares in PT Newmont Nusa Tenggara (PT NNT) which was carried out from December 8 through December 13, 2008 under the arbitration procedure of United Nations Commission on International Trade Law (UNCITRAL), the Arbitral Tribunal issued the final award on March 31, 2009, which is basically in favor of the Government of Republic of Indonesia.

The Arbitral Tribunal which consist of internationally-known panel states as follows:

1. Orders PT NNT to execute the provision of the Contract of Work's chapter 24.3.

2. Declares PT NNT has defaulted

3. Orders PT NNT to divest 17% shares, that is 3% that was to be divested in 2006, 7% that was to be divested in 2007 to the local administration(s) and 7% that was to be divested to the government of Republic of Indonesia. All the obligations should be fulfilled within 180 days after the arbitration ruling.

4. The shares that must be divested should have been decolateralized (clean and clear) and the source of funds for the share purchase should not become a matter of concern for PT NNT.

5. Orders PT NNT to reimburse the expenses spent by the government for the arbitration over the case and must be paid within 30 days after the arbitration ruling (end)