TORONTO (miningweekly.com) – Newmont Mining has signed a definitive agreement with the Indonesian government for the sale of the last seven percent stake it and partner Sumitomo are required to divest in the Batu Hijau copper/gold mine.

Newmont and partner Sumitomo agreed under a 1986 contract of work to sell a total of 51% of the Batu Hijau project to local Indonesian entities in stages, over an agreed timeframe.

The final stake will be acquired by Pusat Investasi Pemerintah (PIP), a company designated by the government,  for around $246,8-million, Newmont said.

After the deal closes, likely later this month, Newmont will control 44,56% of Batu Hijau, comprising its direct ownership of 27,56% and a 17% effective economic interest as a result of financing arrangements with other shareholders.

"With the signing of this transaction, we have successfully fulfilled our divestiture obligations," said CEO Richard O'Brien.

"We are pleased to welcome PIP as a shareholder in PTNNT as this will result in all levels of the Indonesian government – regional, provincial and central – participating in the ownership.”
 

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