Batu Hijau Copper Mine Ownership Issue to Be Concluded

Japanese companies’ interests issue in Batu Hijau copper mine in Indonesia is expected to be concluded in 2010. The mining operating company of PT Newmont Nusa Tenggara (PTNNT) is controlled the 80% share by foreign company and 20% by Indonesian company. The Indonesian share should be increased to more than 50% by 2010. The Japanese interests decrease from 35% to around 21% in 2010.

Newmont Indonesia has 45% in PTNNT while Japanese consortium, in which Sumitomo Corporation has 26% share, Sumitomo Metal Mining has 5%, Mitsubishi Materials has 2.5% and Furukawa has 1.5%, has 35% in PTNNT. The project is to reduce the foreign companies’ share to 49%.

The foreign companies should sell 10% share in PTNNT in 2006 and 2007 and 7% in 2008 for $ 390 million and $247 million. The foreign companies already agreed to sell 7% share in PTNNT in 2009. The foreign companies will sell remaining 7% in 2010.