UPDATE 1-Indonesia, Newmont agree further 14 pct stake sale
* Newmont, Sumitomo sell 14 pct in unit for $493.6 million
* Newmont, Sumitomo to remain operators of Batu Hijau mine
By Fitri Wulandari
JAKARTA, Nov 23 (Reuters) - A consortium of Indonesian local governments has agreed to buy an additional 14 percent stake in a local unit of Newmont Mining Corp. (NEM.N) for $493.6 million, a Newmont official said on Monday.
The purchase will resolve a divestment dispute between the government and the foreign owners of PT Newmont Nusa Tenggara which runs the Batu Hijau copper and gold mine in Sumbawa island.
"We have a signed sales and purchase agreement for a 14 percent stake. We also signed an agreement which says that Newmont and Sumitomo remain as operators" for the mine, Martiono Hadianto, president of Newmont Nusa Tenggara (NNT), told reporters.
Newmont and Japan's Sumitomo Corp (8053.T), the foreign shareholders of PT NNT, will own 56 percent after the latest stake sale. Hadianto said the foreign owners must give up their operating status only if their combined stake drops below 40 percent.
The deal is expected to be settled within two working days after both parties report to Indonesia's energy ministry and receive approval from the investment coordinating board.
With the additional stake purchase, the consortium -- PT Multi Daerah Bersaing, which is linked to the Bakrie family's Bumi Resources (BUMI.JK) -- will have a 24 pct stake in NNT and will have the right to place its representatives on the board of directors and commissioners of NNT.
NNT's foreign shareholders last week sold a 10 percent stake for $391 million to the consortium, which comprises the governments of West Nusa Tenggara province, West Sumbawa regency, and Sumbawa regency where the mine is located and financing firm PT Multicapital, which is controlled by coal giant Bumi.
An arbitration court in late March ordered Newmont and Sumitomo to sell part of their stake to local investors or to the government within six months, resolving a long-running dispute over ownership.
The rest of NNT's stake of 20 percent is held by Indonesian mining firm PT Pukuafu Indah owned by a politician-turned-businessman Yusuf Merukh.
Pukuafu said it has filed a lawsuit against the government over the stake sale. ((For a related story, click on [ID:nJAK482863])) (Writing by Aloysius Bhui; editing by Sara Webb) ((fitri.wulandari@reuters.com; Reuters Messaging: fitri.wulandari.reuters.com@reuters.net; +62 21 384 6364 ext 904)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))
