https://www.miningweekly.com

Newmont exits Indonesia with $1.3bn sale of Batu Hijau to PT AMI

1st July 2016

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – US gold major Newmont Mining has agreed to sell its stake in the Batu Hijau copper/gold mine in Indonesia, citing its strategic priorities to lower debt and fund its highest-margin projects.

The Denver, Colorado-based miner has agreed to sell its 48.5% stake in PT Newmont Nusa Tenggara (PTNNT) for $1.3-billion to PT Amman Mineral Internasional (PT AMI). According to Newmont, Nusa Tenggara Mining Corporation, which is majority-owned by Sumitomo Corporation, had also agreed to sell its ownership stake to PT AMI.

Newmont advised that payment would comprise $920-million in cash and contingent payments of $403-million tied to metal price upside and development of the Elang gold project.

Pending regulatory approval and satisfying other conditions precedent, the transaction was expected to close in the third quarter. These conditions included government approval of the PTNNT share transfer; a valid export licence at closing; concurrent closing of PT Multi Daerah Bersaing’s sale of its 24% stake to the buyers; resolving certain tax matters; and no material adverse events that would substantially impact the future value of Batu Hijau.

Newmont pointed out that it had strengthened its portfolio and balance sheet over the last three years, raising $1.9-billion in proceeds from selling noncore assets and lowering net debt by 37% since 2013, despite investing in profitable growth.

Newmont had recently acquired the Cripple Creek & Victor gold mine, in Colorado, and added five-million ounces of gold reserves through exploration campaigns in 2015. The company was also advancing four development projects in the US, Australia and Suriname, which were expected to add up to one-million ounces of profitable production over the next two years.

Edited by Samantha Herbst
Creamer Media Deputy Editor

Comments

Latest News

Resources Watch
Resources Watch
27th March 2024

Showroom

John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.158 0.195s - 92pq - 2rq
Subscribe Now