ID :
59659
Fri, 05/08/2009 - 16:40
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https://www.oananews.org//node/59659
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GOVT DISCUSSES DIVESTMENT PRICE OF NEWMONT
Jakarta, May 8 (ANTARA) - The government team once again met here on Friday to discuss the divestment price of PT Newmont Nusa Tenggara (NNT), a senior mining official said.
Director General for Mineral, Coal and Geothermal Affairs of the Energy and Mineral Resources Ministry (ESDM), Bambang Setiawan said on Friday that the meeting would discuss the share price offered by NNT in a previous meeting.
"The government team met again today to discuss the divestment price of Newmont," he said.
But Bamang believed the meeting would not yet reach an agreement on the divestment price between the government and Newmont, the local unit of US mining giant Newmont Mining Corp.
During the first meeting, PT Newmont Nusa Tenggara (NNT) claimed it had assets worth a total of US$4.9 billion.
With assets worth US$4.9 billion, the price of seven percent of the stake in the divestment of the firm in 2009 would be US$348 million.
The government has set a target to agree a divestment price with Newmont this month (May).
Based on a 1986 contract, the company is required to gradually sell a total of 31 percent of its stake to the government or local parties it appoints.
NNT and the government have gone through an international arbitration procedure following a dispute on how to implement the divestment scheme.
The international arbitration court on March 31, 2009, ruled Newmont must sell a mandatory 17 percent stake in PT Newmont Nusa Tenggara (NTT) to the government within 180 days.
The 17 percent consisted of three percent shares in 2006, seven percent stake in 2007 and seven percent in 2008.
The three percent stake in 2006 were valued at 109 million US dollars with assets worth 3.63 billion and the seven percent in 2007 were worth 282 million dollars with assets accounting for 4.03 billion.
The seven percent in 2008 totaled 426 million dollars of the 6.09 billion dollar assets.***
Director General for Mineral, Coal and Geothermal Affairs of the Energy and Mineral Resources Ministry (ESDM), Bambang Setiawan said on Friday that the meeting would discuss the share price offered by NNT in a previous meeting.
"The government team met again today to discuss the divestment price of Newmont," he said.
But Bamang believed the meeting would not yet reach an agreement on the divestment price between the government and Newmont, the local unit of US mining giant Newmont Mining Corp.
During the first meeting, PT Newmont Nusa Tenggara (NNT) claimed it had assets worth a total of US$4.9 billion.
With assets worth US$4.9 billion, the price of seven percent of the stake in the divestment of the firm in 2009 would be US$348 million.
The government has set a target to agree a divestment price with Newmont this month (May).
Based on a 1986 contract, the company is required to gradually sell a total of 31 percent of its stake to the government or local parties it appoints.
NNT and the government have gone through an international arbitration procedure following a dispute on how to implement the divestment scheme.
The international arbitration court on March 31, 2009, ruled Newmont must sell a mandatory 17 percent stake in PT Newmont Nusa Tenggara (NTT) to the government within 180 days.
The 17 percent consisted of three percent shares in 2006, seven percent stake in 2007 and seven percent in 2008.
The three percent stake in 2006 were valued at 109 million US dollars with assets worth 3.63 billion and the seven percent in 2007 were worth 282 million dollars with assets accounting for 4.03 billion.
The seven percent in 2008 totaled 426 million dollars of the 6.09 billion dollar assets.***
