Newmont to sell Indonesia venture stake for $494M

AP News
Posted: Nov 23, 2009 11:08 PM

Newmont Mining has agreed to sell a 14 percent stake in an Indonesian gold mine for $494 million, ending a years-long dispute with the Indonesian government over how the mining company should sell shares as required under its contract to operate in the country.

Newmont shares ownership of the Batu Hijau mine with Japan's Sumitomo Corp. and Indonesia's PT Pukuafu Indah. The Denver-based company says it will transfer the stake to private company PT Multicapital and PT Multi Daerah Bersaing, a consortium of regional and local Indonesian governments.

Last week, Newmont Mining Corp. said a separate 10 percent share was sold to the consortium, for proceeds of about $391 million.