The government has valued the assets of PT Newmont Nusa Tenggara (PT NNT), a local subsidiary of US mining giant Newmont, at less than US$4 billion, lower than Newmont's valuation.
Earlier Newmont had told the government that it put the asset value of NNT at $6 billion in 2008 and $4.9 billion in 2009.
Bambang Setiawan, director general for coal, minerals, and geothermal at the Energy and Mineral Resources Ministry said that the government only put one value on the assets of NNT.
"I cannot tell you the exact figure. But, based on our valuation NNT's asset value is lower than $4 billion," Bambang said.
The government is evaluating the value of NNT's assets in a bid to find a base price for the shares currently being negotiated for divestment.
As ruled by an arbitration panel on March 31, Newmont is in the process of divesting 17 percent of its shares in NNT, the operator of Indonesia's second largest copper mine Batu Hijau, to the government or parties that it appoints.
The central government is making an appraisal to buy 14 percent of the stake with local government eyeing the rest. Of this 14 percent, 7 percent are the shares that were to be sold in 2008 and the remaining 7 percent are the shares that were supposed to be sold in 2009.
Newmont's spokesman Rubi W. Purnomo refused to comment on the government's value of the NNT's assets. "Newmont is prepared to further evaluate the shares with the government," he said
Bambang said the government and Newmont came up with two different values, as they have different opinions on the value of the Elang and the Section 7 mines, which are two mines included in the NNT working area.
"The government gives lower prices for these two mines, because they have not *reached* the production stage yet," Bambang said.
As has been reported earlier, Energy and Mineral Resources Minister Purnomo Yusgiantoro said the government and Newmont would probably appoint an independent auditor to value NNT's assets.
Bambang on Tuesday once again underlined the need of this independent assessment. However, he did not mention when the government would decide to appoint, or agree to the appointment of an independent auditor.
"We do not set the exact date, but when the negotiation faces deadlock, *then* we will appoint the independent evaluator. We don't want to make it too time consuming," he said.
Bambang Gatot Ariyono, director for coal and mineral development at the ministry, said that once the negotiation reached a deadlock, the government and Newmont each would then appoint an independent auditor.
"These auditors will have 40 days to value NNT's assets. If their values are still different, the government and Newmont will talk to select one auditor *who will then work on behalf of the two parties*."
