Bumi subsidiary offered 31 percent of Newmont: Governor

The Jakarta Post ,  Jakarta   |  Mon, 07/13/2009 6:39 PM  |  Business

PT Multicapital, a subsidary of mining giant Bumi Resources, has the opportunity to buy an up to 31 percent stake in gold mining firm Newmont Nusa Tenggara (NNT), West Nusa Tenggara Governor M. Zainul Madji said Monday.

"We have a commitment with Multicapital to continue our partnership. And the partnership is not only to buy the 10 percent stake, but up to 31 percent," he was quoted by Antara as saying after a meeting with Energy and Mineral Resources Minister Purnomo Yusgiantoro in Jakarta.

On Sunday, a consortium of three local governments in West Nusa Tenggara province announced that they selected Multicapital to partner with them to finance the acquisition of 10 percent stake at Newmont.

MultiCapital will finance the US$391 million cost of acquisition, but would give 25 percent of the acquired stake to local governments.

US mining giant Newmont Corp, NNT's main shareholder, must gradually sell a total of 31 percent of its stake in the company to the government, or local parties designated by the government, by 2010.

"We have sent a letter to the President, the finance minister and energy and mineral resources minister to allow us to manage the 31 percent [of Newmont shares],” Zainul said.

Bumi Resources is a subsidiary of PT Bakrie & Brothers, which is controlled by the family of Coordinating Minister for People’s Welfare Aburizal Bakrie.

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