ID :
11919
Wed, 07/09/2008 - 01:55
Auther :
Shortlink :
http://m.oananews.org//node/11919
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ARBITRATION TALKS ON NEWMONT SHARES DIVESTMENT POSPTPONED
Mataram, July 8 (ANTARA) - International arbitration proceedings on the divestment of gold-mining company PT Newmont Nusa Tenggara (NNT) shares which were orginally scheduled to begin in July 2008 have been postponed because Newmont's arbiter, Steven Sublle from New York, has been taken ill, a West Nusatenggara (NTB) mineral resources official said.
"According to the latest information we have received, when the Newmont arbiter's state of health has improved, the arbitration talks can be held next December or possibly earlier," H Jalal, head of NTB's energy and mineral resources office, said here Tuesday.
He said the NTB provincial administration was keeping abreast of developments in the Newmont divestment case which Indonesia had referred to an international arbitration court.
As its aribiter in the case, the Indonesian government had appointed Prof M Sornarajah, a law expert from the National University of Singapore, while Newmont had assigned Steven Sublle from New York. As the judge, the two sides had agreed to appoint Robert Primer from Switzerland.
"We are constantly monitoring developments in the arbitration case and on standby any time to provide data and other information needed in the court proceedings. We are also ready to be questioned as witnesses," Jalal said.
The Indonesian government and PT Newmont are trying to settle their dispute over divestment of PT Newmont shares through international arbitration in accordance with Uncitral (Arbitration Rules of the United Nations Commision on International Trade Law) provisions.
Indonesia referred the case to an international arbitration court because Newmont had failed to meet its obligation to divest three percent of its shares in 2006 and seven percent in 2007.
In 2006, three percent of Newmont shares was worth 109 million US dollars or 36.3 million US dollars per one percent of the shares. In 2007, seven percent of the shares was worth 282 million US dollars or 40.3 million US dollars per one percent of the shares.
Under its contract of work, Newmont is under obligation to divest up to 51 percent of its shares over a period until 2010 to national parties, namely the central government, regional government and national companies.
But until now, Newmont had yet to begin honoring its obligation despite reminders from the government and a declaration of default, and even a reprieve until March 3, 2008.
While the arbitration process was underway, Newmont was permitted to continue its normal operations and fulfil its usual duties under government supervision, Djalal said.
"According to the latest information we have received, when the Newmont arbiter's state of health has improved, the arbitration talks can be held next December or possibly earlier," H Jalal, head of NTB's energy and mineral resources office, said here Tuesday.
He said the NTB provincial administration was keeping abreast of developments in the Newmont divestment case which Indonesia had referred to an international arbitration court.
As its aribiter in the case, the Indonesian government had appointed Prof M Sornarajah, a law expert from the National University of Singapore, while Newmont had assigned Steven Sublle from New York. As the judge, the two sides had agreed to appoint Robert Primer from Switzerland.
"We are constantly monitoring developments in the arbitration case and on standby any time to provide data and other information needed in the court proceedings. We are also ready to be questioned as witnesses," Jalal said.
The Indonesian government and PT Newmont are trying to settle their dispute over divestment of PT Newmont shares through international arbitration in accordance with Uncitral (Arbitration Rules of the United Nations Commision on International Trade Law) provisions.
Indonesia referred the case to an international arbitration court because Newmont had failed to meet its obligation to divest three percent of its shares in 2006 and seven percent in 2007.
In 2006, three percent of Newmont shares was worth 109 million US dollars or 36.3 million US dollars per one percent of the shares. In 2007, seven percent of the shares was worth 282 million US dollars or 40.3 million US dollars per one percent of the shares.
Under its contract of work, Newmont is under obligation to divest up to 51 percent of its shares over a period until 2010 to national parties, namely the central government, regional government and national companies.
But until now, Newmont had yet to begin honoring its obligation despite reminders from the government and a declaration of default, and even a reprieve until March 3, 2008.
While the arbitration process was underway, Newmont was permitted to continue its normal operations and fulfil its usual duties under government supervision, Djalal said.
