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62168
Sun, 05/24/2009 - 22:05
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https://www.oananews.org//node/62168
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FINANCE MINISTER TO DETERMINE OF NEWMONT: PURNOMO
Jakarta, May 24 (ANTARA) - Energy and Mineral Resources Minister Purnomo Yusgintoro said that the finance minister would decide the buyer of PT Newmont Nusa Tenggara (NNT) shares if an agreement with the mining firm had been reached.
"The government's plan to acquire NNT's shares is still being discussed by an inter-departmental team and it is expected an agreement would be reached soon," the minister said here on Sunday.
He said that if an agreement had been reached it would be taken to the finance minister who will be at the same time asked whether the central government would acquire the NNT stake.
Purnomo said he would ask the finance minister whether the central government had enough money to purchase NNT's shares for 2008 and 2009 because the value of the shares were too high.
The finance ministry as the state treasurer is the party which will decide whether or not the central government will acquire the NNT share.
"If the central government will not buy the stake, the Ministry of Energy and Mineral Resources will be given the right to decide and divert it to second priority buyer, namely the local administration," he said.
He said that the planned acquisition of the company's shares for 2006 and 2007 had been given to the local government. The local government will then negotiate it with NNT in accordance with an international arbitration court ruling.
The government and NNT have reached an agreement for the divestment of 3 percent worth US$109 million of the company's shares for 2006 with assets valued at US$3.63 billion, and 7 percent worth US$282 million for 2007 with assets estimated at US$4.03 billion.
However both sides are still negotiating the divestment of 7 percent of NTT stake for 2008 and 2009 respectively.
Last year, NNT and the government went through an international arbitration procedure following a dispute on how to implement the divestment scheme.
The court ruled in favor of the Indonesian government. Under the international arbitration court ruling, Newmont is required to sell 17 percent of its stake which was supposed to be carried out in the 2006-2008 period.
In addition, Newmont will also sell 14 percent of its stake allocated for 2009 and 2010, bringing the total of shares Newmont has to sell to 31 percent.
Under a 1986 contract, Newmont must gradually sell 31 percent of its stake in NNT to the government or local parties it will appoint in 2010.
"The government's plan to acquire NNT's shares is still being discussed by an inter-departmental team and it is expected an agreement would be reached soon," the minister said here on Sunday.
He said that if an agreement had been reached it would be taken to the finance minister who will be at the same time asked whether the central government would acquire the NNT stake.
Purnomo said he would ask the finance minister whether the central government had enough money to purchase NNT's shares for 2008 and 2009 because the value of the shares were too high.
The finance ministry as the state treasurer is the party which will decide whether or not the central government will acquire the NNT share.
"If the central government will not buy the stake, the Ministry of Energy and Mineral Resources will be given the right to decide and divert it to second priority buyer, namely the local administration," he said.
He said that the planned acquisition of the company's shares for 2006 and 2007 had been given to the local government. The local government will then negotiate it with NNT in accordance with an international arbitration court ruling.
The government and NNT have reached an agreement for the divestment of 3 percent worth US$109 million of the company's shares for 2006 with assets valued at US$3.63 billion, and 7 percent worth US$282 million for 2007 with assets estimated at US$4.03 billion.
However both sides are still negotiating the divestment of 7 percent of NTT stake for 2008 and 2009 respectively.
Last year, NNT and the government went through an international arbitration procedure following a dispute on how to implement the divestment scheme.
The court ruled in favor of the Indonesian government. Under the international arbitration court ruling, Newmont is required to sell 17 percent of its stake which was supposed to be carried out in the 2006-2008 period.
In addition, Newmont will also sell 14 percent of its stake allocated for 2009 and 2010, bringing the total of shares Newmont has to sell to 31 percent.
Under a 1986 contract, Newmont must gradually sell 31 percent of its stake in NNT to the government or local parties it will appoint in 2010.
