Thursday, March 24, 2011

Indonesian local government shocks Newmont affiliate

PT Newmont Nusa Tenggara (NNT), a partly-owned affiliate of Newmont Mining Corporation, has expressed its “shock” over a letter from the municipal head of West Sumbawa Regency in Nusa Teggara Barat province, stating he would stop the copper-gold mine operating from April.

The ban will reportedly be implented if the Government of Indonesia does not grant the local government the right to purchase a 7 percent stake currently being offered to the central authorities as required by Indonesian law.

NNT president director, Martiono Hadianto, described the letter as an outcome of an “internal problem” between the central government and the local administration. “PT NNT and foreign shareholders of PT NNT should thus not be involved in the matter,” he said.

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