Newmont Mining Corp.: Batu Hijau divestiture
Thursday, July 23 2009 - 11:05 PM WIB
Significant progress has been made, in cooperation with the Government of Indonesia (the "GOI"), to implement the international arbitration panel's decision of March 31, 2009, relating to the divestment of a portion of Newmont and Sumitomo's interest in Batu Hijau.
In its award, the international arbitration panel ruled that Newmont and Sumitomo must implement the following by the end of September:
Pay a portion of the GOI's costs associated with the arbitration;
-Ensure the release of pledges on 31% of PTNNT's shares held by the Senior Lenders;
-Transfer for value the 3% shares from 2006 and 7% shares from 2007 to the local and regional governments or their designee; and
-Reach agreement with the GOI on the valuation of the 2008 7% divestiture shares and offer those shares to the GOI.
In April 2009, Newmont and Sumitomo paid the required $1.7 million of the GOI's arbitration costs and in May secured the release of 31% of PTNNT's shares pledged to the Senior Lenders. In addition, the 2006 and 2007 shares have been re-offered to the local and regional governments for $109 million and $282 million, respectively. In July, Newmont and Sumitomo and the GOI agreed to value the 14% interest in PTNNT, associated with the 2008 and 2009 divestiture shares at approximately $494 million ($3.526 billion for 100%) of PTNNT, and the 2008 and 2009 divestiture shares were re-offered to the GOI.
"We are pleased to have reached a final valuation for the 2008 and 2009 shares with the Government, and we appreciate the collaborative approach taken to reaching agreement in a timely fashion," said Newmont's President and Chief Executive Officer, Richard O'Brien. "Now that this milestone has been achieved, we look forward to the Government advising us to whom Newmont and Sumitomo should transfer the unpledged shares in order to complete implementation of the international arbitration panel's award within the 180-day timeframe."(end of excerpt)