Transfer of Newmont royalties often delayed

The delay in the transfer of royalties paid by PT Newmont Nusa Tenggara (NNT) from Jakarta to regencies in West Nusa Tenggara (NTB) continues, according to a senior government official at the Sumbawa regency administration.

Rasidi, the head of the treasury department of the Sumbawa regional administration, said the royalties for the first and second quarter of this year totaling Rp 21.6 billion (US$=Rp1,450) had not been transferred to the regency?s accounts.

According to him, the total amount does not include the Rp 1.5 billion annual contribution, which must be paid by Newmont.

Rasidi said that Newmont paid total royalties of about US$2.8 million for the first quarter and $4.8 million for the second quarter through the central government. Sumbawa receives Rp 10 billion of the royalties paid during the first quarter, and Rp 114 billion from those paid in the second quarter.

Separately Newmont?s public relations manager Anton Susanto said that the royalties paid by Newmont for the third quarter of this year reached about $5.7 million. The royalties were paid through the account of the minister of finance at the central bank.

The copper and gold mining company has paid a total of $27.50 million in royalties to the government since its initial production in late 1999.

According to the existing regulation, 80 percent of the royalties from mining operations go to the provincial administration and the other 20 percent to the central government. The royalties received by the West Nusa Tenggara province should be split to the province?s six regencies. (*)