Newmont Mining Corp. (NEM) said that its unit, Newmont Indonesia Ltd., together with Nusa Tengarra Mining Corp., an affiliate of Sumitomo Corp., completed the transfer of 10% of PT Newmont Nusa Tenggara or PTNNT to PT Multi Daerah Bersaing.
The company received its pro-rata 56.25% of the proceeds totaling $391 million earlier today related to the sale.
In addition, last week, Newmont and the Indonesian Government agreed to extend the deadline for the sale and transfer of the 2008 and 2009 divestiture shares until November 23 to allow the Government additional time to designate a buyer.
As part of the agreement to extend the deadline, the Government acknowledged that PTNNT has fulfilled its obligations under the Contract of Work and the arbitration decision.
Newmont's ownership in Batu Hijau's proven and probable equity reserves has been reduced from 45% to 39.375%. This share transfer results in a pre-tax gain of about $100 million that will be carried as an increase to equity in Newmont's consolidated balance sheet. In addition, Newmont will continue to consolidate PTNNT.
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