Newmont Mining Corporation has completed the sale of its ownership stake in PT Newmont Nusa Tenggara (NNT), which operates the Batu Hijau Copper-Gold Project in Indonesia, to PT Amman Mineral Internasional (AMI). The asset’s name now changes to PT Amman Mineral Nusa Tenggara (AMNT).
Newmont received US$1.3 billion for its 48.5% economic interest in PT NNT. This is comprised of gross cash proceeds of $920 million and contingent payments of $403 million tied to higher copper prices and any future development of the Elang deposit.
Nusa Tenggara Mining Corporation, majority owned by Sumitomo Corporation, also sold its 24.5% ownership stake to PT AMI. Newmont and PT AMI have worked cooperatively throughout the sales process and developed a productive relationship.
“Newmont has been a long-term partner with the government of Indonesia and we support the new owner as they take responsibility for the asset and its team,” said Newmont president and chief executive officer Gary Goldberg.
“Selling our ownership stake in PT NNT streamlines our portfolio and allows us to focus on assets that best match our capabilities for creating value and managing risk. We will use sale proceeds to continue self-funding our highest margin projects, retiring debt and paying competitive dividends.
"With the sale completed, our long-term cost and production outlook remains stable, and approximately three-quarters of our gold reserves are now based in the United States and Australia.
"We appreciate the support of the Batu Hijau team, PT AMI, local and national government leaders, our host communities and our partners in completing the sale, and will continue to work together to effect a smooth transition,” he said.
Batu Hijau was classified as held for sale and reported as a discontinued operation in Newmont’s third quarter and prior period financial results. Newmont’s adjusted net income including attributable net income from Batu Hijau would have been $0.51 per share. The company reported GAAP net income attributable to Newmont stockholders from continuing operations of $0.32 per share; and adjusted net income of $0.38 per share in the third quarter.
Newmont is a leading gold and copper producer. The company’s operations are primarily in the US, Australia, Ghana, Peru and Suriname. Newmont is the only gold producer listed in the S&P 500 Index and was named the mining industry leader by the Dow Jones Sustainability World Index in 2015 and 2016. Newmont was founded in 1921 and has been publicly traded since 1925.