Newmont, Sumitomo, BNP Paribas in loan deal

Cooper and gold miner PT Newmont Nusa Tenggara (NNT) has stricken a deal with three foreign and national banks to obtain a syndicated loan worth US$800 million, NNT?s president director said last week.

The banks are BMP Paribas, Summitomo Bank and bank Mandiri. ?We (NNT) used commercial loans facility. We expect the disbursement of the loan will start this month. The loan will be disbursed in stages,? Martiono Hadianto told reporter in Jakarta without giving further details.

In a recent meeting, the firm's shareholdrs agree on raising a maximum $800 million loan.

With regards the company's obligation to divest 7 percent shares this year, Martiono said the firm had reached agreement with the government on the price of the shares.

"The divestment of the shares is something that we have to do before we sell the shares to public through IPO," he said.

He did not provide any figures, but a source said the price is about US$300 million, which is low in view of the high prices of gold and copper at present. (Godang)