Newmont transfers stake in Indonesian venture

AP News
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Posted: Nov 16, 2009 9:04 PM

Newmont Mining Corp. has sold a 10 percent share of its Indonesian joint venture to a consortium of regional and local governments.

The company's contract to operate in Indonesia includes a requirement for it to divest shares.

Denver-based Newmont said Monday it had received $391 million for its 56.25 percent share of the proceeds for transferring the stake in PT Newmont Nusa Tenggara to PT Multi Daerah Bersaing, made of governments near the company's Batu Hijau mine.

Newmont said the transfer would result in a pretax gain of about $100 million. It said its ownership in Batu Hijau's proven and probable equity reserves has been reduced from 45 percent to about 39 percent.

Newmont has until Nov. 23 to divest 14 percent more shares.