PIP again extends Newmont acquisition deadline

The Finance Ministry through the State Investment Agency (PIP) and Nusa Tenggara Partnership BV (NTP BV) have again signed the seventh amendment for the sales purchase agreement (SPA) of 7 percent stake in PT Newmont Nusa Tenggara, Kontan daily reported on Saturday.

Under the amendment signed in Jakarta on Friday by the head of PIP, Soritaon Siregar and Blake Rhodes of NTP B.V, the two parties agreed to extend the deadline for the purchase of the Newmont shares until January 24, next year

The SPA was first signed in May, 2011 but the government could not exercise the right to buy the shares due to a Constitutional Court ruling that effectively barred the transaction.

The court ruled against the government in a judicial review, in which the latter sought to overturn legal recommendations from the Supreme Audit Agency (BPK).

The audit body concluded that the acquisition of the stake for US$246.8 million by PIP required approval from the House, as it involved the permanent participation of state funds. (*)