Indonesia Government: Newmont Unit Is Worth Less Than $4 Billion
June 02 2009 - 4:37AM
Dow Jones News
The Indonesian government estimates the value of the local unit
of Newmont Mining Corp. (NEM) in which it plans to buy a stake at
less than $4 billion, a senior mining official said Tuesday.
Bambang Setiawan, director general for mineral resources at the
Department of Mines and Energy, told reporters he can't yet reveal
the exact price at which the government has valued PT Newmont Nusa
Tenggara, or PTNNT.
Under its contract of work with the Indonesian government to
develop the Batu Hijau copper mine run by PTNNT, Newmont is
scheduled to divest in stages 51% of PTNNT to Indonesian buyers by
2010.
Newmont failed to meet deadlines to divest 3% of PTNNT in 2006,
and 7% of the company due to be sold in both 2007 and last
year.
An international arbitration panel on March 31 gave Newmont a
180-day deadline to sell the stakes.
Newmont has said PTNNT's assets are worth $4.9 billion as of
this year.
-By Deden Sudrajat, Dow Jones Newswires; 62 21 3983 1277;
Reuben.Carder@dowjones.com