Sumbawa has not received Newmont royalties

Sumbawa regency that hosts the gold mine of PT Newmont Nusa Tenggara (NNT) has not received the royalties paid by the gold mine operator during the first quarter of this year, a non-governmental organization told Bali Pos.

Hasanuddin MS, the chairman of Samudera Lestari , said that the Rp 19.9 billion in royalties that must be paid to the Sumbawa regency was still kept by the provincial administration in Mataram.

"We have confirmed that the royalties have been transferred by the central government to the local administration in Mataram. But the money has yet to reach the Sumbawa regency," he said. He warned the provincial administration in Mataram to soon transfer the money to Sumbawa regency because the money was much needed to finance the local budget.

PT Newmont Nusa Tenggara (NTT), which started the commercial production of its gold mine in Batuhijau in Sumbwa regency early this year, has paid a total of Rp 18.79 billion (1US$=Rp 8,500) to the local administration for the gold production during the first quarter of this year.

The amount paid to the NTB administration are about 80 percent of Rp 23.79 billion in royalties paid by the United States-based mine operator to the government since the company started its production in the province.

The Sumbawa regency, that hosts the gold mine, receives Rp 6.01 billion or about 32 percent of the royalties paid to the local government. The provincial administration receives Rp 3 billion or about 16 percent while other six regencies in the province about Rp 1 billion respectively or 5.3 percent each.

The company said that it had paid royalties of about Rp 3.34 billion for its initial production in late 1999 and Rp 20.14 billion for the gold production during the January-April period. (*)