Owner of Batu Hijau mine to sell 3 percent stake to Trakindo group: Report
Saturday, December 16 2006 - 02:41 AM WIB
"They will sell 3 percent to Trakindo. That is quite certain," said one source who is familiar with the transaction.
U.S.-based global mining giant Newmont, and other foreign stakeholders, including Japanese trading firm Sumitomo Corp. are cutting their stakes in Batu Hijau.
Foreigners now own about 80 percent of the mine, with Newmont holding a 45 percent stake. Meanwhile, local company PT. Pukuafu Indah has controlled 20 percent of the stake.
Nunik Maulana, spokeswoman for Newmont in Indonesia, said that under the working contract, Newmont and other foreign partners must offer the stake to the Indonesian government first. If the government does not want it, they can then offer it to other Indonesian entities.
"There are some Indonesian companies that have shown interest in buying but we haven't given any response yet as we are still waiting for the government's response," she said.
On September 2006, the administration of Sumbawa Barat regency has said it is ready to buy a 3 percent stake in PT Newmont Nusa Tenggara (NNT), which offered the shares as part of its divestment program for US$109 million.
According to Sumbawa Barat administration?s legal representative Ryad Areshman Chairill, the Minister of Energy and Mineral Resources wrote a letter to the Sumbawa Barat regent through letter No. 3091/80/MEM.B/2006 dated August 15, 2006 regarding NNT shares offer. In his letter, the minister said there is no need for the central government to buy shares in NNT. (*)