Newmont's share divestment postponed

The divestment of 10 percent shares in copper and gold mining firm PT Newmont Nusa Tenggara (NNT) is unlikely to happen soon since there is not yet any approval from the finance minister, Jakarta Post reported Friday.

The 10 percent shares are the amount of shares the firm should have divested in the period of 2006-2007 under its contract of work.

The 10 percent shares are worth US$ 391 million.

The sales and purchase agreement (SPA) for the 10 percent shares will not be signed until "until the finance minister (Sri Mulyani Indrawati) returns to Indonesia,? State Minister for state enterprises Mustafa Abubakar told reporters at his office Thursday.

PT Multi Daerah Bersaing, a joint venture between PT Multicapital Indonesia, a unit of mining giant Bumi Resources, and the West Nusatenggara government, together with state owned miner PT Aneka Tambang initially planned to buy the 10 percent stake and another 14 percent stake that should be divested for the period of 2008-2009.

However, two days ago Antam withdrew its participation in the acquisition plan.

Antam has reportedly failed to reach an agreement with the West Nusa Tenggara government on shares composition.

Mustafa did not specify if the delay in the signing of the SPA aims to give time for Antam to reconsider its withdrawal decision.

Mustafa said he hoped Antam would change its mind. (*)