Newmont and Sumitomo Complete 10% Share Sale of PTNNT for $391 Million; Government Acknowledges PTNNT has Complied With its Dive
17 November 2009 - 10:47AM
PR Newswire (US)
DENVER, Nov. 16 /PRNewswire-FirstCall/ -- Newmont Mining
Corporation (NYSE:NEM) ("Newmont" or the "Company") today announced
that its subsidiary, Newmont Indonesia Limited, together with Nusa
Tengarra Mining Corporation ("NTMC") (an affiliate of Sumitomo
Corporation), completed the transfer of 10% of PT Newmont Nusa
Tenggara ("PTNNT") (3% for the 2006 divestiture and 7% for the 2007
divestiture) to PT Multi Daerah Bersaing ("PTMDB"), a consortium
comprised of regional and local governments near the Batu Hijau
mine, and PT Multicapital, a private company. Newmont received its
pro-rata 56.25% of the proceeds totaling $391 million earlier
today. "We are pleased to have concluded the sale of 10% of PTNNT
as required under our Contract of Work with the Government of
Indonesia," said Alan Blank, Executive Vice President, Legal and
External Affairs. "We are looking forward to working with our new
partners for the benefit of shareholders and local communities,
with a focus on maintaining industry leading standards for employee
safety, responsible environmental management and sustainability."
In addition, last week Newmont and the Indonesian Government
("Government") agreed to extend the deadline for the sale and
transfer of the 2008 (7%) and 2009 (7%) divestiture shares until
November 23, 2009, to allow the Government additional time to
designate a buyer(s). As part of the agreement to extend the
deadline, the Government acknowledged that PTNNT has fulfilled its
obligations under the Contract of Work and the arbitration
decision. "We appreciate the Government's ongoing assistance, and
PTNNT and its foreign shareholders will continue working in good
faith to complete the divestiture process," said Mr. Blank. "We
stand ready to sell and transfer the 2008 and 2009 divestiture
shares to the Government or its designee by November 23, 2009."
Newmont's ownership in Batu Hijau's proven and probable equity
reserves (4.1 million ounces of gold and 3.95 billion pounds of
copper as of December 31, 2008) has been reduced from 45% to
39.375%. This share transfer results in a pre-tax gain of
approximately $100 million that will be carried as an increase to
equity in Newmont's Consolidated Balance Sheet. In addition,
Newmont will continue to consolidate PTNNT. DATASOURCE: Newmont
Mining Corporation CONTACT: Investors, John Seaberg,
+1-303-837-5743, , or Media, Omar Jabara, +1-303-837-5114, , both
of Newmont Mining Corporation Web Site: http://www.newmont.com/
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