Newmont says Pukuafu makes false claim
Thursday, August 26 2010 - 06:15 PM WIB
Recently, PTPI issued public statements claiming the right to acquire previously divested shares in PTNNT. Newmont's and Sumitomo Corporation's subsidiaries (the "Subsidiaries") divested these shares to another Indonesian company as required under PTNNT's Contract of Work with the Indonesian Government and in accordance with a 2009 ruling of an international arbitration panel.
"PTPI has long wished to have a right to acquire the divestiture shares," said Blake Rhodes, Vice President & Deputy General Counsel. "The Indonesian Government, however, has an explicit right of first refusal under the Contract of Work. PTPI's claims are contrary to the Government's priority rights." The Contract of Work expressly provides that PTNNT "...shall ensure that its shares owned by the Foreign Investor(s) are offered either for sale or issue firstly, to the Government...."
At all times relevant to fulfilling the divestiture obligations, PTPI did not, and presently does not, have any right of first refusal to acquire the divestiture shares. Furthermore, in fulfilling its divestiture requirements, Newmont did not breach any obligations to PTPI. Certain of PTPI's public assertions - including that PTPI paid Newmont for some or all of the divestiture shares - are patently false as Newmont did not receive any such payments. If it had, the Company would have been required to disclose the payments.
In addition to its recent public assertions, PTPI has continued to pursue litigation in Indonesian courts against the Subsidiaries and other parties despite signing a full release and agreement to discontinue its proceedings. As a condition of providing financing to PTPI in late 2009 to enable PTPI to repay its third-party bonds, PTPI agreed to cease with claims contending that it had pre-emptive rights to acquire the divestiture shares and not to assert new claims. PTPI has breached its contractual obligations by failing to dismiss the legal proceedings and by commencing new ones, the first of which is expected to be decided by an Indonesian district court in September. The Company through its subsidiaries has taken a number of additional actions to protect its legal rights and enforce the release.
To date, a 24% interest in PTNNT has been sold by the Subsidiaries, at the direction of the Indonesian Government through exercise of its priority purchase rights, to PT Multi Daerah Bersaing, an entity indirectly owned by PT Bumi Resources and the local governments in the region where the Batu Hijau mine is located. The divestment of the final 7% stake in PTNNT is in progress. (alex)