Newmont Mining Selling Indonasian Mine for $1.3 Billion

 

 

 

 Said Thursday that it would sell its 48.5% economic interest in the operator of the Batu Hijau copper and gold mine in Indonesia to local company PT Amman Mineral Internasional for $1.3 billion.

The announcement came as Indonesian-listed oil and gas company PT Medco Energi Internasional Tbk said it had acquired a controlling stake in PT Amman for $2.6 billion.

A group of Indonesian investors led by Medco had earlier expressed interest in purchasing as much as 76% of the mine operator, PT Newmont Nusa Tenggara. Medco said Thursday that it would join forces with an investment firm led by banker Agus Projosasmito and receive funding for the purchase from Indonesia’s three largest state-owned banks.

Japan’s Sumitomo Corp., Newmont’s partner in Newmont Nusa Tenggara, has also agreed to sell its ownership stake to PT Amman.

Newmont said the sale of its stake at “fair value aligned with its strategic priorities to lower debt, fund highest margin projects and create value for shareholders.”

“Our goal is to build a portfolio of long-life, low-cost assets with the technical, social and political risks we are well-equipped to manage,” Newmont Chief Executive Gary Goldberg said in a conference call to discuss the transaction, noting that earlier divestments have lowered risk
Read More: Newmont Mining Selling Indonasian Mine for $1.3 Billion