T

he Energy and Mineral Resources Ministry says that the divestment of the final 7 percent stake in PT Newmont Nusa Tenggara (PT NNT) will proceed despite a recent court verdict annulling the initial divestment.

PT NNT is the operator of gold and copper mine Batu Hijau in West Nusa Tenggara. The foreign shareholders of the company, Newmont Indonesia Limited (NIL) and Nusa Tenggara Mining Corporation (NTMC), an affiliate of Sumitomo Corporation, are obliged by a 1986 mining contract to divest 31 percent of their shares to local parties.

The two companies have so far sold 24 percent of the shares to PT Multi Daerah Bersaing (MDB). The foreign shareholders are also in talks with the ministry for the divestment of the remaining 7 percent stake.

The process, however, stalled after the South Jakarta District Court ruled last week that local miner PT Pukuafu Indah (PTPI), which has a 20 percent share in PT NNT, is entitled to the 31 percent stake. The court also ordered Newmont and Sumitomo to pay US$26.6 million in financial damages to PTPI.

Despite the decision, the head of legal and public relations at the Energy and Mineral Resources Ministry, Sutisna Prawira, said the ministry would proceed with the final divestment.

“The divestment will continue. The court’s decision is not binding as yet as there will be an appeal,” Sutisna said Friday.

The media reported earlier that the ministry and PT NNT’s foreign shareholders had agreed to a price of $271.6 million in the final 7 percent stake.

Sutisna said the divestment would proceed, without waiting for the appeal process.

Earlier, Newmont vice president and deputy general counsel, Blake Rhodes, said Newmont and Sumitomo would file an appeal with the higher court.

“NIL and NTMC will appeal the verdict, [so the ruling] is not final until after the appeal. At the same time, we will continue to pursue justice against PTPI through arbitration, which we requested in August at the Singapore International Arbitration Centre, the venue contractually agreed upon between NIL and PTPI for the resolution of disputes,” said Rhodes, adding that the South Jakarta District Court’s verdict was not supported by sufficient evidence.

Meanwhile, PTPI’s vice president for legal and external affairs Tri Asnawanto said NIL and NTMC could not delay the verdict implementation.

“We ask them to obey the court verdict and hand over the 31 percent stake to PTPI. As the court ruled, they will be fined as much as Rp 10 million per day for the delay of the verdict implementation,” Tri said in a press statement.