TORONTO (miningweekly.com) – Newmont Mining has signed a loan agreement with P.T. Pukuafu Indah, which owns 20% of PT Newmont Nusa Tenggara, the holding company of the Batu Hijau copper/gold mine in Indonesia.

Newmont holds a 35,44% interest in PTNNT

The Colorado-based gold-miner said PTPI had used $287-million of the loan proceeds to repay and  extinguish outstanding debt, and had agreed to pledge its 20% interest in PTNNT as collateral for the loan, as well as all of its own shares.

Newmont's local subsidiary “may fund certain additional advances as required to extinguish other debt held by PTPI,” the company said.

The loan has a maturity date of December 31, 2019, and repayment of the loan prior to maturity will be made from dividends attributable to the pledged shares and other payments until the loan balance is repaid.

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