Newmont exiting Indonesia with US$1.3b sale of assets

Toronto

NEWMONT Mining Corp, the largest US bullion producer, agreed to sell its Indonesian copper and gold assets for US$1.3 billion to a local consortium, as the country pushes miners to build smelters rather than exporting raw materials.

PT Amman Mineral Internasional, a closely held Indonesian company backed by three local banks, will buy Newmont's 48.5 per cent interest in the operator of the Batu Hijau mine, the Greenwood Village, Colorado-based company said on Thursday. Sumitomo Corp also agreed to sell its stake in an asset that Newmont says has a gross valuation of more than US$2.5 billion.