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Newmont: Local Governments To Buy Stake In Indonesia Unit For 391 Million

JAKARTA -(Dow Jones)- Newmont Mining Corp. (NEM) has agreed to sell 10% of its Indonesian unit to local governments for $391 million, a company official said late Friday.

The 10% stake in PT Newmont Nusa Tenggara, or PTNNT, was scheduled to be divested in 2006 and 2007, spokesman Rubi Purnomo said in a text message.

Newmont is scheduled to divest 51% of PTNNT to local buyers by next year, but difficulties in negotiations with potential buyers have delayed the process.

Newmont has a 45% stake in PTNNT and Sumitomo Corp. (8053.TO) has 35%, while a local mining group owns the remaining 20%.

The consortium that is buying the PTNNT stake includes the governments of West Nusa Tenggara province and West Sumbawa and Sumbawa regencies, the three areas in which PTNNT's Batu Hijau copper and gold mine is located, as well as financial firm PT Multicapital.

-By Deden Sudrajat, contributing to Dow Jones Newswires; 62 21 3983 1277; Reuben.Carder@dowjones.com

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