Indonesia's investors to buy 14% share of U.S.-run Newmont

Regional governments will lead a group of investors, including state mining form PT Aneka Tambang, to acquire 14 percent share of U.S.-run PT Newmont Nusa Tenggara (NNT), the Jakarta Post reported here on Thursday.

Energy and Mineral Resources Minister Darwin Saleh said that the decision was taken earlier this week after a recent meeting between him and Finance Minister Sri Mulyani Indrawati, State Minister for State Enterprises Mustafa Abubakar, as well as Coordinating Minister for the Economy Hatta Radjasa.

Darwin said that being a consortium leader would certainly boost the chance of local government to take higher shares in Newmont, having just bought 10 percent in the company through a joint venture called PT Daerah Maju Bersaing (DMB) backed financially by PT Multicapital, an affiliate of Indonesia's biggest mining firm PT Bumi Resources.

The regional governments are Nusa Tenggara Barat (NTB) province, Sumbawa regency and West Sumbawa regency.

According to a 1986 contract, Newmont Mining must gradually sell a total of 31 percent of its shares to the government of local parties appointed by government by 2010.

Source: Xinhua