The Indonesian Government has threatened to cancel a contract with global gold miner Newmont Mining following a dispute over share allocations at the Batu Hijau gold and copper mine.
The company says it is surprised by the Ministry of Mines' announcement to terminate Newmont's contract for the mine.
"We were puzzled by the letter, especially since progress was being made with the local governments, including completion of an agreement to divest the first two percent on 28 January," a Newmont spokesman told Reuters.
Newmont says it remains committed to a "fair and transparent" divestiture of shares at the Batu Hijau mine.
Under its contract, Newmont's Indonesian subsidiary Newmont Nusa Tenggara must sell 51% of its shares to local investors.
By staff writer
