“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013.

They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."
"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: The Humanization of God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,..... etc.)
(Subjects: Who/What is Kryon ?, Egypt Uprising, Iran/Persia Uprising, Peace in Middle East without Israel actively involved, Muhammad, "Conceptual" Youth Revolution, "Conceptual" Managed Business, Internet, Social Media, News Media, Google, Bankers, Global Unity,..... etc.)

Wednesday, April 01, 2009

Newmont Must Sell 17% Of Indonesian Unit


By Reuben Carder and Deden Sudrajat, Of DOW JONES NEWSWIRES, April 01, 2009: 05:46 AM ET

JAKARTA -(Dow Jones)- Indonesia's mines minister said Wednesday that international arbitrators had ruled in Indonesia's favor on two of the major disputes it has with Newmont Mining Corp. (NEM).

Purnomo Yusgiantoro, Minister for Energy and Mineral Resources, confirmed an earlier statement from the government that said Newmont has 180 days from Tuesday to sell 17% of its local unit PT Newmont Nusa Tenggara, or PTNNT, or be found in default of its contract.

Newmont confirmed in a separate statement that the arbitrators had ruled the foreign shareholders in PTNNT - Newmont and minority partner Sumitomo Corp. - had been found to be in default of contract for failing to sell stakes in PTNNT on time. The company said it is "committed" to meeting the new divestiture deadline set by the arbitrators.

Also Wednesday, Minister for State-Owned Enterprises' Affairs Sofyan Djalil told reporters that "the government is examining the possibility of buying 17% of (the local unit of) Newmont via state owned companies."

Richard O'Brien, president and chief executive at the U.S. miner said, "we are currently reviewing the decision and look forward to outlining a path forward with the government to implement the arbitration panel's decision."

Newmont has been overruled on both major issues on which it sought arbitration - pledge agreements with its senior lenders on shares in PTNNT and the source of funds to be used to buy stakes in the local unit, which are scheduled for divestiture.

"The shares to be divested must be free and clear of pledge (agreements), and the source of the funds to be used to buy those shares is not PTNNT's business," Purnomo told a news conference.

He said 10% of PTNNT must be sold to local governments in Indonesia, and that the central government itself may purchase a further 7% in the unit or may find another local buyer for the stake before the deadline expires.

Djalil, the state enterprises minister, said nickel miner PT Aneka Tambang ( ANTM.JK), coal miner PT Tambang Batubara Bukit Asam (PTBA.JK), tin producer PT Timah (TINS.JK) or other state-owned firms could buy the stake in PTNNT.

He didn't elaborate on the discrepancy between that statement and Purnomo's comment that only 7% of the stake could be bought by the central government.

Purnomo said the arbitrators' decision was final and cannot be appealed, adding that the arbitrators have ruled that Newmont must pay all costs incurred during arbitration proceedings, within 30 days. He didn't elaborate.

Newmont originally filed for arbitration in 2007 to avoid being found in default of its Contract of Work after missing a deadline to sell 3% of PTNNT in 2006 and 7% of the unit in 2007, claiming the government had blocked the sales.

It then filed for further arbitration last year claiming the government was again blocking sales of the unit - including a further 7% scheduled for divestiture in 2008 - claiming that a pledge agreement between Newmont and its senior lenders in PTNNT meant the shares couldn't be sold.

Newmont sought a ruling from the arbitrators that the share pledges were legal and not an impediment to divestiture.

It had also protested a plan by Indonesian mining giant Bumi Resources ( BUMI.JK) to fund local governments' purchases of 31% of PTNNT. It claimed Bumi should not be allowed to fund the purchases and that Bumi's involvement may have led to disputes with the government, in turn leading to Newmont missing its divestiture deadlines.

Newmont Denies Government Can Revoke License

The government earlier said it can revoke Newmont's operating license should the company fail to meet the deadline to divest the stake in PTNNT.

However, the three international arbitrators overseeing the case said the government could not revoke Newmont's operating license, known as a Contract of Work, people familiar with the matter said Tuesday.

Newmont also said in its statement Wednesday that the government had not been given authority to revoke the license.

Purnomo didn't comment on this Wednesday. In an earlier statement, Purnomo said that the ruling "sets a positive precedent for the government to continue to take strong action against foreign companies that do not fulfill their responsibilities but simply abuse their privileges."

PTNNT operates the Batu Hijau copper and gold mine, on Indonesia's Sumbawa island. It expects the mine to produce 455 million pounds of copper concentrate this year, up from 284 million pounds in 2008, and 486,000 troy ounces of gold this year compared to 269,000 ounces in 2008.

Under Newmont's 1986 contract with the Indonesian government, it is required to sell 51% of PTNNT to local investors by 2010. A 20% stake in PTNNT has already been sold to privately-held local firm PT Pukuafu Indah.

-By Reuben Carder and Deden Sudrajat, Dow Jones Newswires; 62 21 3983 1277; Reuben.Carder@dowjones.com

No comments: