17 November, 2009
UPDATE 2-Indonesia urges Antam to buy shares in Newmont unit
* Antam under pressure to join consortium
* Antam shares rise 6.3 pct; broader market up 0.2 pct
* Would be positive, asset diversifying move - analyst
* Foreign s'holders sell 10 pct in local Newmont unit (Adds quotes, details)
By Muklis Ali and Tyagita Silka
JAKARTA, Nov 17 (Reuters) - Indonesia has asked state miner PT Aneka Tambang Tbk (Antam) (ANTM.JK) to join a consortium to buy a 14 percent stake worth nearly $500 million in the local unit of Newmont Mining Corp (NEM.N), the chief economics minister said on Tuesday.
An arbitration court in late March ordered the foreign shareholders of PT Newmont Nusa Tenggara (PT NNT) to sell part of their stake to local investors or to the government within six months, resolving a long-running dispute over ownership.
The government and Newmont agreed last week to an extension to Nov. 23 to complete the sale of another 14 percent stake worth $493.6 million after Antam dropped plans to join a consortium of local governments. [ID:nJAK486310]
"We extended the deadline to give time for the local governments and Antam to talk again to find the best solution," Chief Economics Minister Hatta Rajasa said. "The State Enterprises Ministry insists Antam should join in."
Shares in Antam rose as much as 6.3 percent on Tuesday after earlier media reports quoted State Enterprises Minister Mustafa Abubakar as saying the government still wanted Antam to take part in the divestment process.
"There is the potential that Antam may bid for Newmont, as the government wants them to be a part of the divestment again. The deadline is Nov. 23, so there's still a chance for them," said John Teja, head of sales at Ciptadana Sekuritas, noting this could be a positive for Antam as it would diversify its assets.
Antam, which has a stock market value of $2.4 billion, is involved in the exploration and production of nickel, bauxite, iron sands, gold and silver, as well as smelting ferronickel.
An Antam official could not immediately be contacted.
Antam shares have more than doubled this year, outperforming the broader market .JKSE, which is up 82 percent.
Separately, foreign shareholders in PT NNT, which runs the Batu Hijau copper and gold mine on Indonesia's Sumbawa island, completed the sale of a 10 percent stake.
The stake, worth $391 million, had been transferred to PT Multi Daerah Bersaing -- a consortium of the governments of West Nusa Tenggara province, West Sumbawa regency and Sumbawa regency, where the mine is located -- and financing firm PT Multicapital, PT NNT spokesman Rubi Purnomo said.
PT Bumi Resources Tbk (BUMI.JK), Indonesia's largest coal miner which is linked to Multicapital, had transferred the funds on Monday, PT NNT President Director Martiono Hadianto said.
According to the terms of its 1986 contract, PT NNT's foreign investors must sell 51 percent of the shares in the unit to local investors. Newmont and Japan's Sumitomo Corp (8053.T) own 45 percent and 35 percent respectively.
A local mining group has already bought a 20 percent stake.
With the latest stake purchase, the foreign shareholders must still sell the remaining shares by the end of 2010.
The foreign investors started offering shares from 2006, but failed to sell them, sparking the dispute with the government.
For a Q+A on Newmont dispute, click [ID:nJAK465121] (Writing by Fitri Wulandari; Editing by Ed Davies and Ian Geoghegan)
Source: http://www.reuters.com
UPDATE 2-Indonesia urges Antam to buy shares in Newmont unit Added: (17.11.2009)
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