Newmont Successfully Completes Sale Of Batu Hijab Mine

DENVER, CO - Newmont Mining Corporation (successfully completed the sale of its ownership stake in PT Newmont Nusa Tenggara (PTNNT), which operates the Batu Hijau copper and gold mine in Indonesia, to PT Amman Mineral International (PTAMI). The asset’s name now changes to PT Amman Mineral Nusa Tenggara (PTAMNT).

Newmont received total consideration of $1.3 billion for its 48.5 percent economic interest in PTNNT. This amount is comprised of gross cash proceeds of $920 million and contingent payments of $403 million tied to higher copper prices and any future development of the Elang deposit. Nusa Tenggara Mining Corporation, majority owned by Sumitomo Corporation, also sold its 24.5 percent ownership stake to PTAMI. Newmont and PTAMI have worked cooperatively throughout the sales process and developed a productive relationship.

“Newmont has been a long-term partner with the government of Indonesia and we support the new owner as they take responsibility for the asset and its team,” said Gary Goldberg, President and Chief Executive Officer. “Selling our ownership stake in PTNNT streamlines our portfolio and allows us to focus on assets that best match our capabilities for creating value and managing risk. We will use sale proceeds to continue self-funding our highest margin projects, retiring debt and paying competitive dividends. With the sale completed, our long-term cost and production outlook remains stable, and approximately three quarters of our gold reserves are now based in the United States and Australia. We appreciate the support of the Batu Hijau team, PTAMI, local and national government leaders, our host communities and our partners in completing the sale, and will continue to work together to effect a smooth transition.”