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PT Newmont Nusa Tenggara, which is owned by U.S. mining giant
Newmont Mining Corp. and operates a copper and gold mine in Batu Hijau,
West Nusa Tenggara (NTB), aims to finalize the sale of a 2-percent
stake in the operation to the regency of Sumbawa by the end of January.
Company spokesman Martiono Hadianto said Monday he was optimistic that
ongoing negotiations between the company and the Sumbawa administration
would wrap up by 31 Jan.
The 2-percent share is part of a 7-percent divestment scheduled for
2007; the company has not yet concluded the sale of a 3-percent stake
dating to 2006.
As part of a so-called mandatory divestment program, Newmont is to
reduce its stake in the mine to 49 percent by 2010.
Martiono said the negotiations covered the applicable loan scheme and
interest terms.
Martiono said it had previously been agreed the regency would form a
company through which to acquire the two-percent stake.
The company said the 2006 price tag of US$36.33 million per share
arrived at during previous negotiations between Newmont and the Energy
and Mineral Resources Ministry would apply.
The 2007 price tag has been set at $40.2 million per share.
"We want to accommodate the government in the divestment process,"
Martiono said, referring to the company's decision to sell at the lower
price.
The mandatory divestment has been in limbo, with the government and
company having different perceptions of the divestment status.
The government -- represented by Investment Coordination Board (BKPM)
chairman M. Luthfi -- and Newmont had initiated the ongoing
negotiation, Martiono said.
"We will realize the plan, as soon as we get clarity on this
(divestment) issue," Martiono said.
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