PTNNT: Continues operations despite temporary roadblock

(April 08, 2011)--PT Newmont Nusa Tenggara (PTNNT) announced today that it continues operations despite an illegal roadblock at PTNNT?s gate that temporarily prevented access of company?s vehicles and employees. Production from the mine and process plant are not affected.

?The nearly 7,000 employees and contractors at Batu Hijau are united in our belief that, as a contractor to the Government of Indonesia, PTNNT has the legal right to continue the mine?s operations in a safe and responsible manner for the benefit of shareholders, employees, local communities and contractors,? said David Lilley, General Manager of Operations, PTNNT. ?Actions that prevent us from carrying out our mandate under the Contract of Work agreement only prevent us from creating and delivering benefits to the mine?s thousands of stakeholders.?

A group of about 300 people, largely from outside the local region, started the roadblock at about 05.00 am and ended at about 04.45 pm.

Today?s action is part of an effort to secure the 7% divestiture shares that the foreign shareholders of PTNNT have offered for sale to the Central Government as required by the Contract of Work. A dispute between KSB Regional Government and the Central Indonesian Government has emerged over who should purchase the shares. PTNNT is required to offer the shares to the Central Government who in turn decides which Indonesian entity will purchase them.

?I have a real concern that today?s action and other potential actions could cause our employees to be distracted from their primary responsibility, which is to return home safe and healthy every day to their families. Therefore, I stress that all employees should stay focused on undertaking their work safely,? said David Lilley. ?We continue working closely with relevant Government agencies to do everything we can to prevent any disruption to our operation, so that our employees, contractors, local communities that surround and support us and all those who indirectly benefit from our operation, are not affected by any rash and unlawful actions.?

PTNNT contributes significantly to the national, regional and local economy through taxes, non-tax fees and royalty payments which amounted to a total of Rp5,76 trillion or US$651 million in 2010 alone. PTNNT also spent US$125.3 million in employee payroll, of which 63% are recruited locally from within the Nusa Tenggara province and the majority of those employees from the West Sumbawa district.

In addition, the company spent US$31.8 million in local purchases and contracts, and US$7.5 million in community development projects. (ends)