Newmont to divest seven percent of its shares this year

Copper and gold miner PT Newmont Nusa Tenggara will offer seven percent of its shares to local investors this year as part of the company's mandatory divestment program, a senior official at the ministry of energy and mineral resources has said.

MS Marpaung, the director for mineral and coal development at the ministry said in Jakarta Sunday that Newmont's seven percent stake would be offered from March, next month until March 2008.

"The value of Newmont's seven percent stake is being calculated," he was quoted by Neraca daily as saying.

At present, the company which operates a copper and gold mine in West Nusa Tenggara province, is still negotiating the sale of its three percent shares to a consortium of the local authorities including the West Sumbawa regency administration.

The company's three percent stake worth about US$109 million was offered last year, but the deal had not yet been settled until now.

NNT, which obtained its contract of works to operate a copper and gold mine in Batu Hijau, West Nusa Tenggara in 1986, is required to divest up to 51 percent of its shares to local investors by 2010. By March, 2008, the company should divest 10 percent of its shares as part of the mandatory divestment program.

Current NNT?s shareholders are Newmont Mining Corp (45 percent), local company PT Pukuafu Indah (PI) has controlled 20 percent of NNT?s shares and a consortium led by Japan?s Sumitomo (35 percent). (*)