Newmont Nusa Tenggara’s Stake Sale Deadline Extended

By webadmin on 05:07 pm Aug 07, 2012
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Tito Summa Siahaan & Fitri

Jakarta/Mataram. The deadline for the proposed divestment of the remaining 7 percent of Newmont Nusa Tenggara’s shares to the Indonesian government has been extended by more than two months, to Oct. 25.

Soritaon Siregar, chief of the State Investment Agency (PIP), and Blake Rhodes and Toru Tokuhisa of Nusa Tenggara Partnership BV, the majority and foreign owner of miner Newmont Nusa Tenggara, have signed a third revision to the Newmont divestment arrangement. The first share-purchase agreement was signed in May 2011, before it underwent two revisions that left it with an Aug. 6 deadline.

The central government’s purchase of the Newmont stake has been controversial since its conception. Regional governments themselves interested in the stake have objected, as has the House of Representatives, which sought a court ruling to declare the purchase illegal.

The Constitutional Court barred the central government from buying the 7 percent stake last week. West Nusa Tenggara Governor Zainul Majdi declined to comment on whether the local government had an opinion on the divestment plan. Because of the court’s ruling, the House of Representatives now has to approve the plan for it to proceed.