JAKARTA (TheInsiderStories) - PT Medco Energi Internasional Tbk ( IDX: MEDC) said it has completed the transaction on acquisition of 50 percent ownership of PT Amman Mineral Investama, which has a 82.2 percent stake in gold and copper producer PT Newmont Nusa Tenggara (NNT). The transaction was first announced on June 30, 2016 and already obtained approval from the relevant government and shareholders.
PT Newmont Nusa Tenggara operate mines copper and gold Batu Hijau world scale in the islands of Sumbawa, Indonesia, and have access to several exploration prospects and finding large reserves in the Eagle where everything is included in the Contract of Work owned. By 2015, production from Batu Hijau 240 million lbs of copper and 0.3 million ounces of gold.
“This transaction immediately adds value and is a very important achievement for the company and all stakeholders including the government of Indonesia. We are proud of our commitments and achievements in the achievement of security standards, the environment, social responsibility and world-class human resources. By operating the NNT, MedcoEnergi as a private company enters the transformation into a world-class company,” President Director of Medco Energi, Hilmi Panigoro said.
Similarly, Commissioner of Medco Energi, Muhammad Lutfi, stressed that this transaction further proves and strengthens the vision, mission and values of Medco Energi. The company aspires to be one of the major contributors to national economic development, excel in global competition, a pioneer in promoting the advancement and innovation, as well as leading in ensuring sustainability in all aspects of the company’s activities.
MedcoEnergi and AP Investment cooperating since last year for this transaction and received positive support from the three largest state-owned banks. AP Investment led by Agus Projosasmito, former president director of Danareksa Securities.
As a result of the successful completion of the sale, the Batu Hijau mine and related assets are now fully owned by Indonesian companies, namely PT Amman Mineral Internasional (PTAMI) controlling 82.2 percent and PT Pukuafu Indah (PTPI) controlling the remaining 17.8 percent.
PTAMI is an Indonesian company whose shareholders are AP Investment and Medco Energi. PTAMI was supported by a consortium of Indonesian and international banks in concluding this purchase.
“As a national company, PTNNT will immediately change its name to PT Amman Mineral Nusa Tenggara (PTAMNT)”, said Rachmat Makkasau, President Director of PTNNT. “Building off the values and culture we have created for the business, we are optimistic that we will be able to further develop the trust and a shared understanding of the future with all our valued stakeholders, including the Indonesian government, business partners and local communities”.
The ownership of PTAMNT by PTAMI is a step forward for Indonesia and PTAMNT looks forward to continuing its contributions to the value added from Indonesia’s natural resources for the country development purposes, said Rachmat.
Rachmat added, “With the knowledge and expertise we have as a reputable national mining company with a long-term vision, we are optimistic that Batu Hijau will continue to be a leader of global significance in Indonesia’s mining industry through the application of state-of-the-art technology and environmentally- responsible mining.”
Amman Mineral Nusa Tenggara
PT Aman Mineral Nusa Tenggara (PTAMNT), previously PTNNT, is a copper and gold mining company operating under the Generation IV Contract of Work signed on December 2, 1986. Since it commenced its full operation in Indonesia in 2000, the company has contributed an estimated total of more than Rp. 100 trillion in taxes and non-taxes, royalties, salaries, domestic goods and service purchases, and dividends paid to national shareholders. In addition, the company has also conducted social responsibility programs to improve the quality of life and prosperity of the surrounding communities by providing funds in the annual average amount of Rp. 50 billion. PTAMNT currently employs approximately 4000 employees and 3500 contractors. (*)