Newmont Mining said Monday it has received an extension until next Monday to resolve a dispute with the Indonesian government over the divestment of part of its stake in an Indonesian gold and copper mine.
The two sides have been at odds over the government’s contention that a subsidiary of the giant gold producer breached its contract by failing to divest a 10 percent stake in the mine within the specified time period. Newmont, based in Denver, has denied the allegation.
Newmont has a 45 percent stake, and a local unit of Japan’s Sumitomo Corp. has a 35 percent share in PT Newmont Nusa Tenggara, a subsidiary that owns the Batu Hijau mine on the island of Sumbawa, about 950 miles east of Jakarta.
Under terms of a 1986 contract with Indonesia, the subsidiary is required to sell 51 percent to the Indonesia government or nationals by March 31, 2010.
In a statement issued Monday, Newmont said the government agreed to extend the deadline from last Friday to March 3.
