Govt to purchase seven-pct stake in Newmont

Jakarta (ANTARA News) - Minister for State Enterprises Sofyan Djalil said the government had decided to purchase a seven-percent stake in PT Newmont Nusa Tenggara (NNT) worth US$282 million.

"The government will purchase it as there is an opportunity now," the minister said here on Tuesday.

Previously, state-owned mining company PT Aneka Tambang (ANTAM) had expressed interest in buying PT NNT stock.

Therefore, the minister said, the government would purchase the seven percent stake directly or through one of the state-owned companies.

"The purchase of a share by the government should not always be done directly by the government but it could also be done through a state enterprise," he said.

He said he had not yet decided any other state companies than PT ANTAM to represent the government in the purchase of NNT shares.

PT NNT previously offered a 10-percent share division where West Nusa Tenggara province (NTB) would be allowed to control two percent of the seven percent divestment, West Sumba district three percent consisting of 1.5 percent the three percent divestment and 1.5 percent of the seven percent divestment, Sumbawa district one percent of the seven percent divestment and private businesses four percent.

NTB Governor Lalu Serinata, however, rejected the share-purchase division system, asking that PT NNT offered its divestment in a separate way.

Based on standing rules, the offer has to be made to the central government first, and if the the central government refuses it, then it should be offered to the regional government.

If the regional government also refuses it, the shares would be offered to national private companies.

Indonesia and Newmont signed a work contract worth US$1.8 billion on mining exploration in Batu Hijau area in West Sumba district on December 1986.

The Batu Hijau mining field is estimated to sit on 6.3 billion pound copper and 7.2 million onces of gold deposits.

Based on the working contract agreement, PT NNT will divest 51 pecent of its shares in stages until 2010.

Eighty percent of PT NNT`s shares are owned by Nusa Tenggara Partnership and 20 percent others by PT Pukuafu Indah Indonesia.

Some 56.25 percent of Nusa Tenggara Partnership are owned by Newmont Indonesia Limited and 43.75 percent by Nusa Tenggara Mining Corporation.