Newmont to begin divestment in 2006<\/p>\n
A'an Suryana, The Jakarta Post, Sumbawa, West Nusa Tenggara<\/p>\n
The foreign shareholders of copper and gold mining company PT
\nNewmont Nusa Tenggara will start selling a 3 percent stake in the
\ncompany in 2006.<\/p>\n
Company public relations manager Kasan Mulyono said last week
\nthat the divestment was part of an obligation to unload a total
\nof 51 percent shares to local investors by 2010.<\/p>\n
According to a contract signed with the government in 1986,
\nthe foreign shareholders must start divesting their shares six
\nyears after the mining operation started in 1999.<\/p>\n
Newmont Nusa Tenggara is 45 percent owned by U.S.-based mining
\ngiant Newmont Mining Corp., 35 percent owned by a consortium led
\nby Japan's Sumitomo, and 20 percent by local investor PT Pukuafu
\nIndah.<\/p>\n
Based on the contract, the foreign shareholders must divest a
\n15 percent stake in 2005, and 8 percent in the following year.
\nBut because local investors through Pukuafu already own a 20
\npercent stake, the divestment obligation (of a 3 percent stake)
\nwill start in 2006. The divestment of the remaining 28 percent
\nshares will be conducted in stages from 2007 until 2010.<\/p>\n
Newmont operates a mining concession in the Batu Hijau area of
\nSumbawa regency, West Nusa Tenggara province.<\/p>\n
Last week a group of journalists visited the mining site,
\nwhich has proven reserves of 11 billion pounds of copper and 12.3
\nmillion ounces of gold, according to Newmont Mining Corp.'s 2002
\nunaudited financial report.<\/p>\n
For 2002, copper sales totaled 673.8 million pounds and gold
\n515,200 ounces.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/newmont-to-begin-divestment-in-2006-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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