M

ATARAM: The West Nusa Tenggara (NTB) administration has had its hopes of owning a stake in mining company Newmont boosted after the House of Representatives decided that the government must divest its stake in the company.

The House of Representatives ruled that the government, through the Finance Ministry, has to cede its 7 percent stake in Newmont to a local administration, as the government’s ownership is violating laws on state finance and treasury.

Governor M. Zainul Majdi said that the administration’s intention to purchase the stake reflected the spirit of the 1945 Constitution, which called for the exploitation of Indonesia’s natural richness for the sake of the people’s welfare.

“NTB’s administration will continue efforts to bring people’s welfare from mining operations in NTB territory,” he said.

PT Newmont Nusa Tenggara, which has a mine in Batu Hijau, West Sumbawa, released in 2010 a 51 percent stake as part of a work contract.

The divested stake is now owned by PT Pukuafu Indah (20 percent), PT Multi Daerah Bersaing (MDB) (24 percent) and the central government (7 percent).

The central government, through the Finance Ministry, bought a 7 percent stake in Newmont for US$246.8 million, which was lower than the $271 million initially offered.

Lawmakers’ calls for the government to cede its stake in Newmont were officially disclosed on Monday in Jakarta, when the House announced that they would send a letter to President Susilo Bambang Yudhoyono on the issue.