Newcrest Mining Completes Sale of Indonesian Gold Mine

The Gosowong gold mine, located on Halmahera Island, northeast of Jakarta had recorded production of 190,000 ounces of gold in the 2019 financial year.

SEATTLE (Scrap Monster): Newcrest announced that it has finalized sale of 100% of Newcrest Singapore Holdings Pte (NSH), which owns 75% of PT Nusa Halmahera Minerals (PT NHM), which operates the Gosowong gold mine in Indonesia. The economic ownership has been transferred effective 31 December, 2019.

According to company press release, the sale to Indotan Halmahera Bangkit (Indotan) is priced at A$90m, out of which Newcrest has already received A$60m. The balance A$30m is receivable after 18 months. Newcrest will recognize A44m loss on divestment, after accounting for transaction costs and written down value of the assets from the total sales proceeds, it said.

The move comes after the recent decision by the Indonesian administration by which major mines in the country have to be at least 51% owned by Indonesian companies by 30 June, 2020. Accordingly big mining companies have been divesting majority stakes in order to continue their operations in the country.

The Gosowong gold mine, located on Halmahera Island, northeast of Jakarta had recorded production of 190,000 ounces of gold in the 2019 financial year. It is one of the largest gold mines in Indonesia, with estimated reserves of 6 million oz of gold.

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