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T Newmont Nusa Tenggara (NNT) announced Tuesday it had secured a six-year tenure credit facility of US$600 million to fund its expansion plan at its Batu Hijau gold and copper mine in West Nusa Tenggara.

NNT president director Martiono Hadianto said the loan was extended by a syndicate of 16 banks led by Bank Mandiri, France’s BNP Paribas and Japan’s Sumitomo Mitsui Banking Corporation (SMBC).

“This agreement asserts NNT’s reputation as a well-managed company. The banks included in the syndicate are renowned financial institutions therefore we appreciate their valuable trust in our company,” he said at a press conference after signing the credit agreement in Jakarta.

The credit would ensure that NNT would have the financial resources required to complete the sixth phase of development at Batu Hijau and start operation at the Elang mine, 60 kilometers from Batu Hijau, Martiono said.

“The phase six development project will run from 2011 to 2013. The management is also challenged to kick off operations at Elang mine in 2016,” he said.

Bank Mandiri deputy president director Riswinandi said his bank’s involvement in providing credit to NNT was evidence of its commitment to supporting the development of the country’s mining sector.

“To reaffirm our commitment, we agreed to [contribute to] 30 percent of the syndicated facility, or $200 million, to NNT,” he said.

As a blue chip company, Riswinandi said, NNT acquired a prime interest rate slightly below the market rate. However, he declined to disclose the rate given to the company.

He said Indonesia was blessed with abundant natural resources such as coal, gold and nickel. As most of the resources were not exploited, he said, the mining sector was clearly an attractive sector for banks to finance.

BNP Paribas regional head for energy and commodity finance Gautier Dirckx said he believed the mining sector had become an increasingly strategic sector for Indonesia. Supported by high commodity prices, the sector would have a very bright future, he added.

“As of 2010, the mining industry’s value [stood] at $73 billion, contributing to about 11 percent of Indonesia’s gross domestic product [GDP]. Over the next five years, we believe that the industry is set to post annual double-digit growth,” he said.

BNP Paribas would contribute $75 million in credit, while SMBC would contribute $125 million. The remaining $200 million is to be contributed by the 13 other partners, including Australia’s Commonwealth Bank, Bank Negara Indonesia and UBS.