Sales agreement for Newmont shares extended again

The Finance Ministry and Newmont Nusa Tenggara have again extended the Sales Purchase Agreement (SPA) for the 7 percent stake in the copper and gold mining company, Investor Daily reported on Friday

The ministry?s secretary general Kiagus Ahmad said in Jakarta on Thursday that the extension was made because the House of Representatives still opposed the purchase of the Newmont?s shares by the government?s investment agency Pusat Investasi Pemerintah (PIP).

The extension until August, this year was the sixth since the SPA for the purchase of the Newmont?s shares was signed in May, 2011.

Newmont and Sumitomo, the majority shareholders of Newmont Nusa Tenggara agreed to sell 7% shares for US$246.8 million. The deal was however opposed by the legislators.

The House of Representatives has demanded that the stake purchase be canceled as a Supreme Audit Agency (BPK) finding found a discrepancy in the deal. The finance ministry brought the case to the Constitutional Court, which later ruled in favor of the legislators.

At present, six state companies have expressed their interest to take over the 7 percent stake in Newmont. They include PT Danareksa, PT Tabungan Pensiun Negara (Taspen), PT Jamsostek, PT Perusahaan Pengelola Aset (PPA), PT Pegadaian, and PT Asuransi Kesehatan. (*)