West Sumbawa discusses payment scheme on Newmont's divestment
Thursday, February 8 2007 - 05:33 AM WIB
Director for mineral and coal business development division at the Energy and Mineral Resources Ministry Mangantar S. Marpaung said in Jakarta that the ministry had received a report on the ongoing discussion about the payment scheme. "March 7, 2007 will be the deadline for the sale of a 3 percent stake in NNT," he said.
Under the contract of work, the purchase of the stake should be paid in cash, not by installment but "the problem is financially, the West Sumbawa is unable to pay in cash," he said.
He said that if the payment scheme has not yet been agreed until March 7, 2007, then the purchase of a 3 percent stake in NNT would be cancelled and the number of shares would be accumulated in the divestment program in 2007. "With a 7 percent stake under the 2007 divestment program, the divestment will total 10 percent," he said.
According to Marpaung, the value of the 10 percent divestment will be reevaluated given the change in the price of copper.
However, he denied a report saying that Newmont Mining Corp and other foreign owners are selling a combined of 3 percent stake in NNT to local firm PT Trakindo Utama for about $100 million.
"The clear thing is that the administration of West Sumbawa Regency is still interested in buying a 3 percent stake (in NNT).
In September 2006, the administration of West Sumbawa regency has said it is ready to buy a 3 percent stake in NNT, which offered the shares as part of its divestment program for US$109 million.
NNT is obliged to divest 3 percent in 2006, as local company PT Pukuafu Indah (PI) has already controlled 20 percent of NNT's shares. The 51 percent divestment is expected to be completed in 2010. (*)