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8-K - FORM 8-K - NEWMONT Corp /DE/ | c98050e8vk.htm |
Exhibit 99.1
Newmont and Sumitomo Complete 2009 7% Share Sale of PTNNT for $247 Million
DENVER, March 17, 2010 Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) today
announced that its subsidiary, Newmont Indonesia Limited, together with Nusa Tenggara Mining
Corporation BV (NTMC), an affiliate of Sumitomo Corporation (Sumitomo), completed the sale of
7% of PT Newmont Nusa Tenggara (PTNNT) corresponding to the PTNNT 2009 divestiture obligations.
The 7% interest was sold to PT Multi Daerah Bersaing (PTMDB), a consortium comprised of regional
and local governments near the Batu Hijau copper and gold mine in Indonesia, and PT Multicapital, a
private company (the 2009 Share Transfer).
Upon completion of this sale, Newmont received approximately $129 million in cash, reflecting its
56.25% portion of the $247 million sale price reduced by a $17 million dividend adjustment payable
to PTMDB under the sale agreement. The 2009 Share Transfer will result in a pre-tax gain of
approximately $50 million that will be reflected as an increase in equity on the Companys
consolidated balance sheet.
In conjunction with the closing of the 2009 Share Transfer, the mine operating agreement among
Newmont, NTMC, and PTMDB came into effect. Under this agreement, Newmont and Sumitomo continue to
retain so long as their combined shareholding is greater than PTMDBs interest in PTNNT the
right to apply Newmonts operational, technical, financial, and related standards and practices to
the operation and management of Batu Hijau. This includes standards for safety, environmental
stewardship, and social responsibility.
Pursuant to the PTNNT Contract of Work, an additional 7% of PTNNTs shares will be offered for sale
by Newmont and NTMC by March 31, 2010, after which the divestiture obligations contained in the
Contract of Work will be complete.
With the close of the 2009 Share Transfer, Newmonts economic ownership in Batu Hijau has been
reduced from 52.44% to 48.50%, which includes the 17% effective economic interest obtained as
collateral for the previously reported loan transaction with PT Pukuafu Indah as well as Newmonts
direct holding of 31.5%. The resulting net effect on Newmonts 2010 operating outlook is a decrease
in production of approximately 25,000 equity ounces of gold and 20 million equity pounds of copper.
Investor Relations
John Seaberg 303.837.5743 john.seaberg@newmont.com
John Seaberg 303.837.5743 john.seaberg@newmont.com
Media Relations
Omar Jabara 303.837.5114 omar.jabara@newmont.com
Omar Jabara 303.837.5114 omar.jabara@newmont.com
Cautionary Statement:
This news release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that are intended to be covered by the safe harbor created by such sections and other
applicable laws. Such forward-looking statements may include, without limitation, statements
regarding future share transfers, events resulting from changes in ownership of PTNNT, future
control of mining decisions at Batu Hijau, operating guidance and future gold production and copper
production. Where the Company expresses or implies an expectation or belief as to future events or
results, such expectation or belief is expressed in good faith and believed to have a reasonable
basis. However, forward-looking statements are subject to risks, uncertainties and other factors,
which could cause actual results to differ materially from future results expressed, projected or
implied by such forward-looking statements. Such risks include, but are not limited to, gold and
other metals price volatility, currency fluctuations, increased production costs and variances in
ore grade or recovery rates from those assumed in mining plans, political and operational risks,
and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and
other factors, see the Companys 2009 Annual Report on Form 10-K, filed on February 25, 2010, with
the Securities and Exchange Commission, as well as the Companys other SEC filings. The Company
does not undertake any obligation to release publicly revisions to any forward-looking statement,
to reflect events or circumstances after the date of this news release, or to reflect the
occurrence of unanticipated events, except as may be required under applicable securities laws.