Newmont Mining sells Indonesia mine for $1.3b

Newmont Mining sells Indonesia mine for $1.3b

US gold and copper miner Newmont Mining Corp (NYSE:NEM) is selling its 48.5% stake in PT Newmont Nusa Tenggara, the operator of the open pit Batu Hijau copper and gold mine in Indonesia to local mine company PT Amman Mineral Internasional for US$1.3 billion.

The Denver-based miner said the amount is comprised of cash proceeds of $920 million to be paid at closing and contingent payments of up to $403 million.

Gary Goldberg, Newmont chief executive said: “Selling our stake in PTNNT for fair value is aligned with our strategic priorities to lower debt, fund our highest margin projects and create value for shareholders.”

Nusa Tenggara Mining Corp., the majority owned by Japan’s Sumitomo Corp., has also agreed to sell its ownership to PT Amman.

Newmont and Sumitomo operate the Batu Hijau copper and gold mine on the island of Sumbawa in Western Indonesia.

The mine is one of Indonesia’s largest copper deposits and has been a profitable venture for Newmont since it began commercial operations there in 2000.