Newmont Mining has entered an agreement with PT Amman Mineral Internasional (PT AMI) to sell its interests in PT Newmont Nusa Tenggara (PTNNT), which operates Indonesia’s Batu Hijau copper and gold mine.
Newmont’s 48.5 per cent interest in PTNNT is valued at $1.3 billion; with the deal seeing $920 million paid at closing and $403 million in contingent payments.
Nusa Tenggara Mining Corporation is also selling their ownership stake to PT AMI.
The company’s president and CEO Gary Goldberg said, “Selling our stake in PTNNT for fair value is aligned with our strategic priorities to lower debt, fund our highest margin projects and create value for shareholders.”
The move is set to close following regulatory approvals in the third quarter. It is also subject to other conditions including government approval of the transfer and resolving all tax matters.
Newmont has generated $1.9 billion from the sale of non-core assets and since 2013 has decreased their debt by 37 per cent. In 2015, they acquired the Cripple Creek & Victor gold mine in the US, and added five million ounces of gold reserves.
Its projects in Australia, USA, and Suriname are set to add nearly one million ounces of profitable production over the next two years.
The sale follows BHP divesting its 75 per cent stake in Indonesia’s IndoMet Coal, exiting the country completely.