Sumbawa has not received royalty from Newmont

Sumbawa regency has not received royalties from gold and copper mining company Newmont Nusa Tenggara (NNT) for the first and second quarter of this year, Bali Pos reported on Monday.

The regency, an area where Newmont?s mining areas is located, has been allocated about Rp 24 billion (1US$=Rp10,000) from the copper and gold mining company. But ministry of finance has not yet disbursed the royalty payment to the regency.

According to the available data, Sumbawa received about Rp 10.16 billion in royalties from Newmont for the first quarter and Rp 10 billion in the second quarter. Newmont has transferred the royalties to the ministry of finance but the later has not disbursed the payment.

?The regency administration should immediately asked the central government about the delay in the royalty disbursement,? a senior member of the local legislative council has said.

At present mining companies are required to pay the royalties directly to the ministry of finance, which will later disburse the royalty payment based on the existing revenue sharing formula. But the system has been widely criticized because the payment from the ministry is often delayed for several months. (*)