Newmont?s sale-purchase agreement extended again

The State Investment Agency (PIP) and Nusa Tenggara Partnership BV have signed the fifth amendment of the sales and purchase agreement (SPA) for a 7 percent stake in PT Newmont Nusa Tenggara in order to be able to extend the SPA deadline until April 26. 2013, Kontan reported on Friday.

The head of PIP Soritaon Siregar said on Thursday that the amendment allowed both parties to fulfill their obligation in the sale and purchase of the mining company?s 7 percent stake. He said that the amendment was also made because the requirements for the sale and purchase of the company?s 7 percent stake signed in Oct, 24, 2012 had not been fulfilled.

Up to now, the finance ministry had not decided which agencies would be assigned to buy the shares. Previously Minister of State Enterprises Dahlan Iskan said that he was still waiting for the government?s assignment to take over Newmont?s 7 percent stake.

Though the agreement was signed in 2011, the government has not been able to execute the share acquisition plan due to a Constitutional Court ruling that effectively barred the transaction.

The court ruled against the government in a judicial review, in which the latter sought to overturn legal recommendations from the Supreme Audit Agency (BPK). The audit body concluded that the acquisition of the stake for US$246.8 million by state-owned PIP required approval from the House, as it involved state budget.

The stake is the last piece of Newmont's Indonesian unit that is up for sale. Foreign shareholders in the mine, including Japan's Sumitomo Corp, were required to gradually sell a total of 51 percent in the unit to local investors. (*)