Wednesday, March 17, 2010

Newmont, Sumitomo divest 7% of Batu Hijau

Newmont Indonesia Limited, a subsidiary of Newmont Mining Corporation and Nusa Tenggara Mining Corporation BV, an affiliate of Sumitomo Corporation, have completed the sale of 7% of PT Newmont Nusa Tenggara corresponding to the PTNNT 2009 divestiture obligations. The 7% interest was sold to PT Multi Daerah Bersaing, a consortium comprised of regional and local governments near the Batu Hijau copper and gold mine in Indonesia, and PT Multicapital, a private company.

The sale price was $247 million reduced by a $17 million dividend adjustment payable to PTMDB under the sale agreement.

In conjunction with the closing of the 2009 Share Transfer, the mine operating agreement among Newmont, NTMC, and PTMDB came into effect. Under this agreement, Newmont and Sumitomo continue to retain — so long as their combined shareholding is greater than PTMDB's interest in PTNNT — the right to apply Newmont's operational, technical, financial, and related standards and practices to the operation and management of Batu Hijau. This includes standards for safety, environmental stewardship, and social responsibility.

Pursuant to the PTNNT Contract of Work, an additional 7% of PTNNT's shares will be offered for sale by Newmont and NTMC by March 31, 2010, after which the divestiture obligations contained in the Contract of Work will be complete.

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