Govt extends sale agreement to buy stake in Newmont

The government, through State Investment Agency (PIP), has extended the US$246.8 million sales and purchase agreement (SPA) with Newmont Nusa Tenggara to buy a 7 percent stake in the copper and gold operation.

Newmont’s stakeholders, through the Nusa Tenggara Partnership B. V. and PIP chairman Soritaon Siregar, have agreed to extend the agreement until May 6, 2012, as the government was still awaiting completion of documents to finalize deal.

“The effective requirements that have not been fulfilled include agreements from the Energy and Mineral Resources Ministry’s directorate general of mineral and coal and from the Investment Coordinating Board (BKPM),” the investment agency said in a statement released on Friday.

The agency said, however, that if as of May 6 the requirements had yet to be fulfilled, both parties will “have the opportunity to extend the sales and purchase agreement again”.

The House of Representatives has demanded the stake purchase be canceled, as a Supreme Audit Agency (BPK) finding indicated foul play in the deal. The government and PIP, however, defended their move, saying that the purchase process had been carried out professionally.