Summary
Newmont Mining Corporation announced the completion of a divestiture obligation related to the Batu Hijau mine, as required by the Batu Hijau Contract of Work. Their subsidiary, Newmont Indonesia Limited, along with an affiliate of Sumitomo Corporation, sold a 7% stake in PT Newmont Nusa Tenggara to a consortium of regional and local governments and a private company. This transaction, referred to as the 2008 Share Transfer, generated approximately $139 million for Newmont, representing its 56.25% share of the total sale price. This sale has a direct impact on Newmont's ownership and its share of the proven and probable equity reserves at the Batu Hijau mine. The company's ownership interest in the mine's equity reserves has decreased from 39.375% to 35.44%. Investors should note this reduction in ownership stake and its potential implications for future earnings and resource exposure from this significant mine.
Key Highlights
- 1Newmont Mining Corporation completed the sale of a 7% stake in PT Newmont Nusa Tenggara.
- 2The sale was a requirement under the Batu Hijau Contract of Work for divestiture obligations.
- 3The transaction involved Newmont's subsidiary, Newmont Indonesia Limited, and an affiliate of Sumitomo Corporation.
- 4The purchasers were a consortium of regional/local governments and a private company.
- 5Newmont received approximately $139 million from the sale.
- 6Newmont's ownership in the Batu Hijau mine's proven and probable equity reserves decreased from 39.375% to 35.44%.
- 7This sale is related to the '2008 Share Transfer' as per the filing.