JAKARTA (TheInsiderStories) – Newcrest Mining Ltd., (ASX: NCM), an Australian-based corporation engages in gold and copper concentrate, was selling its entire 75 percent stake in PT Nusa Halmahera Minerals (NHM) to Rajawali Group, the company announced yesterday. The deal worth of US$90 million.
NHM operates Gosowong, one of the largest gold mines in Indonesia and PT Puncakbaru Jayatama to to PT Indotan Halmahera Bangkit, a unit of local tycoon Peter Sondakh. Based on the company data, the site produces gold and silver with a capacity 800,000 tons a year.
The company said in an official statement, Newcrest has signed an agreement to sell 100 percent of Newcrest Singapore Holdings Pte. Ltd., (NSH), which owns a 75 percent interest in NHM. The sale of NSH follows a strategic review of the asset by Newcrest and to comply with the amended Gosowong Contract of Work which required the miner to sell down to at least 49 percent of NHM by June, 30, 2020.
According to Newcrest managing director and CEO, Sandeep Biswas, “Following an extensive review and sale process we are pleased to be able to announce the sale of Gosowong to Indotan.”
Subject to completion, he adds, Newcrest expects to recognize a $44m loss on divestment of its 75 percent interest after taking into account the sales proceeds less written down value of the assets sold and transaction costs.
Gosowong has been a valued part of the company operating portfolio since discovered in 1993, with first production commencing in 1999.
Indonesian government targets 31 nickel smelters to be operate in 2022, with 20 of them projected to be achieved next year to help the production of electric car components. Head of the mineral exploration business at the energy and mineral resources (EMR) ministry, Andri Budhiman, stated, based on the government’ rules as stated at MEMR Law Number 4 of 2009, the mining holders are required to process and refine the raw materials to added value products.
Then, the minimum processing and refining limits for metal minerals, non-metals, and rocks have been regulated by the MEMR Number 5 of 2017 and Number 25 year 2018.
For reasons of the need for a transition period, the government has several times provided mineral export relaxation as stipulated in Government Regulation Number 1 of 2017. Where for companies that have undertaken the process of constructing refining and processing facilities or smelters are given mineral export leeway until Dec. 31, 2021.
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