Bakrie pay US$391 million for Newmont

Newmont Mining Corp. said the sale of a 10 percent stake in its Indonesian venture will be completed today.

The agreement for the sale of 10 percent of PT Newmont Nusa Tenggara was signed on Nov. 6 and was approved by the Indonesian investment board on Nov. 12. Newmont expects the transfer of the funds from buyers including PT Bumi Resources to complete tonight.

PT Multi Daerah Bersaing, owned by three local administrations in West Nusa Tenggara province and PT Multicapital, on Nov. 6 signed an agreement to buy 10 percent stake in Newmont Nusa Tenggara, which runs Batu Hijau copper and gold mine, for $391 million. Multicapital is 5 percent owned by Indonesia' s top coal producer Bumi Resources.

The sales purchase agreement (SPA) on the divestiture of a 10% stake in Newmont Nusa Tenggara for period 2006-2007 to the Regional Government of West Nusa Tenggara (NTB) and its partner Multi Capital Indonesia-a subsidiary of Bakrie Capital Industries-is finally completed.

The signing was made by West Nusa Tenggara (NTB) Governor Zainul Madji, President Director of Newmont Nusa Tenggara Martiono Hadianto, and President Director of Multi Daerah Bersaing-a joint venture established by the Regional Government of NTB and Bakrie group-in Jakarta, 6 November 2009.

However, the plan of the Regional Government of West Nusa Tenggara (NTB) and publicly listed PT Aneka Tambang (Antam) to acquire a 14% stake in Newmont Nusa Tenggara worth US$492.8 million finally is dissipated after both parties fail to reach an agreement on share allotment.

Under a 1986 agreement, 3 percent of Newmont Nusa Tenggara was to be offered by Newmont and other overseas partners in the venture to the central government or its agencies in 2006, and 7 percent in each year from 2007 to 2010. The 10 percent stake agreed on today was supposed to have been sold in 2006 and 2007.

On Nov. 12, the West Nusa Tenggara's Governor Zainul Majdi said the local administrations in the province and Newmont have agreed to extend the deadline for another 14 percent of Batu
Hijau to Nov. 23, after agreeing in September to reach an agreement for sale of 24 percent of Batu Hijau by Nov. 12.