Newmont asks government to delay divestment program

PT Newmont Nusa Tenggara (NNT), a subsidiary of US based giant miner Newmont Mining Corp. has asked the government to delay the divestment of seven percent stake that was previously scheduled for March 2007, Koran Tempo reported Tuesday

According to daily, NNT wants the sale of three percent stake worth US$ 109 million to the Nusa Tenggara provincial administration and the West Sumbawa regency administration to be completed first.

Director for the mineral, geothermal and coal business development at the Ministry of Energy and Mineral Resources M.S. Marpaung said in Jakarta Monday that NNT had proposed the delay in the divestment of seven percent stake to the government. ?But it is too premature for the government to respond to the request,? he said.

Despite the request for the delay in the divestment program, the schedule of next year divestment program will not be changed, in March 2008, he said.

Marpaung said that NNT and the West Nusa Tenggara provincial administration were currently negotiating the purchase of the three percent stake. They were still negotiating the payment scheme for the stake purchase.

Meanwhile, NNT?s spokesman Kasan Mulyono acknowledged NNT?s move to propose the delay in the seven percent divestment program.

The delay was necessary to provide an opportunity for buyers to settle the transaction, he said.

Current NNT?s shareholders are Newmont Mining Corp (45 percent), local company PT Pukuafu Indah (PI) has controlled 20 percent of NNT?s shares and a consortium led by Japan?s Sumitomo (35 percent). (*)