PDIP to challenge sale of Newmont Nusa Tenggara shares

The Indonesian Democratic Party of Struggle (PDIP) Faction at the West Nusa Tenggara (NTB) Provincial Legislative Council plans to challenge the sale of 6 percent shares in gold and copper giant PT Newmont Nusa Tenggara (NNT) owned by the provincial administration to IDX-listed energy company PT Medco Energi Internasional Tbk, Bisnis Indonesia reported on Friday.

The paper quoted Vice Chairman of the PDIP Faction, Ruslan Turmuzi as saying that the approval for the sale of the NNT shares owned by the provincial administration was not made at DPRD plenary session but was only given by council leaders. This is a violation of the existing procedure, he added.

He said that the PDIP faction has made preparations to challenge the transaction.

As has been reported, Medco has signed agreement to acquire a combined 82.2 percent shares in NNT including the 6 percent shares owned by the NTB provincial administration.

Medco will acquire the NNT shares from PT Amman Mineral Internasional (AMI), which has also signed agreement to acquire the shares from Newmont Corp, Sumitomo, PT Multi Daerah Bersaing (MDB), and Indonesia Masbaga. The NTB administration owns the NNT shares via MDB. NNT operates the giant Batu Hijau mine in NTB Province. (*)