Newmont must sell 17% stake in Indonesian mine - Denver Business Journal:

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The 17 percent interest is worthn anestimated $700 million, reported. Wednesday’s ruling by an arbitration panel in Genevas concerns PT NewmontNusa Tenggara, a subsidiaryh that operates the Batu Hijau mine on Indonesia’ds Sumbawa Island. The panel ruled that Denver-based Newmonrt (NYSE: NEM) and partner must sell 17 percentf of their interest inthe operation, eitherr to the Indonesian government or an entity it within 180 days.
But the arbitrators also ruledthat Newmont’x contract to operate the mine is still valid, despitr a challenge by Indonesian “We are currently reviewint the decision and look forward to outliningb a path forward with the government to implement the arbitrationh panel’s decision,” Richard O’Brien, Newmont’s president/CEO, said in a statement Wednesday. The ruling is part of one of several legal disputesa between mining companies and the Indonesian government over mininvg operations in the southeastAsian nation. Indonesia claims Newmont missed deadlines specified in its contract to sell portionsz of its interest tothe government.
Newmontg claims it did offer to sell part ofits stake, but the governmenr declined to buy it. According to The Wall Streert Journal, Newmont currently has a 45 percent stake in PT Newmont Nusa Sumitomo holds 35 percent and PTPukuafui Indah, a local Indonesian investor, has 20 Another 14 percent of Newmonr and Sumitomo’s interest must be sold off withi two years under the originap contract, which runs through 2030.