Negotiations the Government and Newmont in Indonesian

Negotiations between the government and Newmont Nusa Tenggara (NNT) related to stock prices divestment threatened impasse.

This is because the size of the gap or difference between the value of the Newmont assets reached USD 500 million or around Rp 5 trillion. This is the value of assets that will be used to determine stock prices divestment of 14 percent.

Minister of Energy and Mineral Resources (ESDM) Purnomo Yusgiantoro said, with a time of negotiations until the end of July, a small possibility of both parties can agree on the difference between the value of USD 500 million. If''selisihnya thin, may be negotiated sit-sit while drinking coffee. Selisihnya but if too large, the wordiness horse (a very long time) is also not finished,''he said yesterday at the Ministry of ESDM (12 / 6).

Therefore, said Purnomo, the government has instructed the Director General Mineral, stone ballast, earth, and Summer (Minerbapabum) to immediately appoint independent appraisal (the price of independent assessors). For'', price negotiations completed quickly, so that the deadline divestment 180 days (from April 1 arbitration decision) can be met,''he said.

According to Director of Development and Mineral and stone ballast ESDM Bambang Gatot Ariyono, based on government calculations, the value of assets NNT per 2009 is not up to USD 4 billion. The calculation is far below the rate of claims Newmont assets reached USD 4.9 billion or different of USD 900 million. However, in some chance of negotiations, the difference is up to over USD 500 million.

There is a difference between the count value of assets the government version and Newmont Newmont enter backup because the location of mines in the Elang and Batu Hijau Section 7 in the calculation of assets, while not the government.

Value of assets is a key factor to determine the stock price will didivestasi. Appropriate agreement Newmont and the government, stock prices for divestment in 2006 of 3 percent is worth USD 109 million and divestment in 2007 of 7 percent is worth USD 282 million. The price of shares divestment in 2008 of 7 percent, Newmont proposes price USD 426 million and divestment in 2009 of 7 percent of Newmont proposes price USD 348 million. So the total price divestment 2006 - 2009 of USD 1.165 billion. However, the government's wish that all of the shares divestment re-review.

According to Purnomo, later in July if the value of assets and stock prices have been agreed, then the technical side, the ministry will submit the number to the Minister of Finance, the state treasurer. ''Later, Menkeu decide whether the government will buy or submit to state-owned '.