PTNNT repays outstanding balance on revolving credit facility

By Romel S. Gurky

Newmont Mining Corporation announced its Indonesian gold and copper mining subsidiary PT Newmont Nusa Tenggara (PTNNT) repaid the remaining US$190 million balance under its Revolving Credit Facility due in 2017. Year-to-date, Newmont has reduced its consolidated debt by more than $1.1 billion.

?Repayment of the PTNNT Credit Facility is an important step in completion of the sale of PTNNT,? said Laurie Brlas, Executive Vice President and Chief Financial Officer of Newmont in a statement on Tuesday.

?The remaining balance of $190 million was paid from cash held at the subsidiary. We expect that the sale of PTNNT will close later this quarter or early in the fourth quarter. Newmont continues to evaluate options for optimizing the best uses of cash, including investing in profitable new production, repaying debt and returning capital to shareholders.?

Since 2013, Newmont has generated $1.9 billion in fairly valued asset sales, which will increase to $2.8 billion upon closing of the sale of PTNNT.

IDX-listed integrated energy company PT Medco Energi Internasional Tbk announced late in June that it had entered into an agreement to acquire PT Amman Mineral Internasional (AMI), which on the same day also announced a deal to acquire a combined 82.2 percent shares in PTNNT including the entire shares of Newmont Mining Corp and Sumitomo Corporation.

The transaction is expected to close in the third quarter following receipt of regulatory approvals and satisfaction of other conditions precedent. Reports said last month that the government has approved the transaction.

Editing by Reiner Simanjuntak