State Enterprises
“We will ask the Finance Ministry to prioritize state enterprises for the Newmont stake,” said Sofyan Djalil, the state enterprise minister. “If the [president] gives the nod, then our companies will talk directly to Newmont.”
The State Enterprises Ministry had sent a letter in May asking for priority to be given to state enterprises, but the Finance Ministry gave no commitment at the time. Energy Minister Purnomo Yusgiantoro said on Thursday that the government and Newmont had reached a deal valuing the 14 percent stake in PT Newmont Nusa Tenggara (NNT), the operator of Batu Hijau, at $493.6 million, based on an entire company valuation of $3.52 billion.
This represented a victory of sorts for the government, which had been holding out for an NNT valuation of $3.42 billion, against Newmont’s estimate of $3.65 billion. Newmont Mining holds a 45 percent stake in NNT, with Sumitomo and other Japanese investors controlling 35 percent and local company PT Pukuafu Indah holding the remainder. Under a contract signed with the government in 1986, Newmont and the other overseas investors are required to divest 49 percent of the company to the state in tranches up to 2010. The 14 percent stake represents two 7 percent tranches that were supposed to have been offered to the government in 2008 and 2009.
Muhammad Said Didu, the secretary to the State Enterprises Ministry, said that state-owned firms have the money to purchase the Newmont stake and were definitely interested in NNT’s copper and gold mining operation in West Nusa Tenggara,
“We are now ready and willing to purchase up to 21 percent of the shares in order to be able to put our people in strategic positions on the board of directors,” he said, referring to the 14 percent stake currently on offer, plus a further 7 percent that must be divested by Newmont next year. He added: “If we only get 7 percent or 14 percent that would mean that we would only get one commissioner, who would be able to do nothing.”
Finance Minister Sri Mulyani said on Thursday that the final decision would be made by President Susilo Bambang Yudhoyono.
At least five potential buyers have expressed an interest in the NNT stake, including a consortium of three local governments from West Nusa Tenggara backed by PT Multicapital, which is owned by companies controlled by the family of Aburizal Bakrie, the coordinating minister for people’s welfare.
State-owned enterprises, including miners PT Aneka Tambang, PT Tambang Batubara Bukit Asam and PT Timah have also expressed interest.
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