Gold exploration and development firm Newcrest Mining has finalised the sale of its wholly owned subsidiary Newcrest Singapore Holdings (NSH) to Indotan Halmahera Bangkit.

NSH holds a 75% interest in PT Nusa Halmahera Minerals (PT NHM), which owns and operates the Gosowong mine in Indonesia.

Newcrest said in a press statement: “The sale of NSH follows a strategic review of the asset by Newcrest and to comply with the amended PT NHM Contract of Work which required at least 51% of PT NHM to be owned by Indonesian parties by 30 June 2020.”

The transaction will allow Indotan to acquire Newcrest’s 75% stake in the Gosowong mine for a total of $90m.

Newcrest noted that it has already received $60m from the sale. Indotan will pay the remaining $30m within 18 months.

Newcrest expects a $44m loss upon divestment of its interest in PT NHM.

The agreement to sell NSH was initially signed in January this year.

Gosowong is a gold and silver mine in Indonesian province North Maluku. It is 2,450km from the country’s capital city Jakarta.

The company discovered the site in 1993 and started first production in 1999.

It produced 190,000oz of gold at an all-in sustaining cost (AISC) of $1,099 per ounce for the 2019 financial year.

Newcrest noted that all conditions with respect to the sale have been satisfied and transfer of economic ownership is also completed.

In October last year, Newcrest Mining joint venture partner Encounter Resources completed the first phase of RC drilling at Hutch’s Find in the Tanami region of Western Australia.

In the same month, the company approved an A$685m ($463.8m) investment for Stage 1 of the Cadia expansion project in New South Wales.