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Newmont Mining has entered an agreement to sell its interests in the Batu Hijau copper and gold mine in Indonesia for $1.3 billion.

Newmont Mining (NYSE:NEM) has entered an agreement to sell its interests in the Batu Hijau copper and gold mine in Indonesia for $1.3 billion.
Newmont, currently the second largest gold miner in the world, owns an interest in Batu Hijau via its 48.5 percent interest in Indonesia’s PT Newmont Nusa Tenggara (PTNNT). It will sell its interest in the company to PT Amman Mineral Internasional (PT AMI), who will also be buying a stake in the mine that is indirectly owned by Japan’s Sumitomo Corporation (TYO:8053).
“Selling our stake in PTNNT for fair value is aligned with our strategic priorities to lower debt, fund our highest margin projects and create value for shareholders,” said Gary Goldberg, Newmont Mining CEO, in a statement. “We believe PT AMI, supported by Batu Hijau’s experienced team, will be well positioned to continue operating the asset successfully.”
According to the Wall Street Journal, Newmont has secured $1.9 billion through sales of its noncore assets since 2013. The company has dealt with a number of roadblocks in Indonesia since the country implemented its mineral export ban in January 2014—as the Journal noted, shipment delays caused a ten percent drop in revenue for Newmont in Q4 of last year.
Located in Sumbawa, Indonesia, Batu Hijau produced 240 million attributable pounds of copper and 328,000 attributable ounces of gold in 2015, in addition to small amounts of silver.
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Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
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