REPUBLIKA.CO.ID, JAKARTA - Government extends purchase agreement of seven percent shares of PT Newmont Nusa Tenggara, from July 26, 2013 until January 24, 2014. The extension is marked by signing of seventh amendment between Head Government Investment Center (PIP), Soritaon Siregar with representative of Nusa Tenggara Partnership, BV Blake Rhodes this weekend.

Seventh amendment is conducted since the earlier term of agreement on April 26, 2013 has not been met. This extension will give both parties to fulfill their respective obligations.

PIP and Nusa Tenggara Partnership plan to sale and purchase seven percent shares of Newmont worth 246.8 million USD or 2.5 trillion IDR. Nusa Tenggara Partnership BV has teamed up to give 32 months as purchase agreement deadline.

The agreement signed in May 2011 has not been executed because Supreme Audit Agency (BPK) said that the purchase should be authorized by Indonesian parliament. Government has brought this issue to Constitutional Court then will ask parliament to authorize it after recess of session ends in August 2013.

Siregar said licensing process would be conducted by government to fulfill mandate of Constitutional Court. If parliament allowed, government would review best option, to determine who has right to buy shares of mining companies located in West Nusa Tenggara. After that, Newmont would be managed by PIP, local government or state owned consortium.

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