Denver-based Newmont Mining Corp., the world’s biggest gold producer, said Thursday a court in Uzbekistan has ruled that the company’s joint venture there owed $36 million in taxes for the period from 2002 to 2004.
Tax authorities have restricted the bank accounts of the Zarafshan-Newmont joint venture, owned 50 percent by Newmont, and may attach the assets, the company said in a filing with the U.S. Securities and Exchange Commission.
Newmont, which plans to appeal the ruling, said the book value of its ownership in the venture was $92 million.
Newmont said the ruling was in error because Uzbekistan’s Ministry of Justice gave the company written confirmation that a decree protecting the joint venture from tax-law changes had been in effect. Newmont spokeswoman Deb Witmer didn’t immediately return a telephone message left at her office after business hours.
For the first quarter, Newmont sold 29,300 ounces of gold from its Zarafshan operations, down 14 percent from 34,200 ounces a year earlier, the company said in April.
Newmont shares fell $1.01, or 2 percent, to $49.51 in New York Stock Exchange composite trading. They have dropped 7.3 percent this year.
