Newcrest has finalised the sale of its Newcrest Singapore Holdings Pte Ltd (NSH) to Indotan Halmahera Bangkit for $90m. NSH owns 75 per cent of PT Nusa Halmahera Minerals (PT NHM), which operates the gold and silver Gosowong mine in Indonesia.
All conditions precedent have been satisfied and economic ownership has transferred with an effective date of 31 December 2019.
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 per cent of PT NHM to be owned by Indonesian parties by 30 June 2020.
Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said the sale delivers value for Newcrest shareholders and provides a clear future path for Gosowong for the benefit of its employees and the community.
“Gosowong has been a valued part of our operating portfolio since we discovered it in 1993, with first production commencing in 1999,” Mr Biswas said.
“Over the last 30 years we have built valued relationships with our Indonesian joint venture partners, suppliers, employees, government and community stakeholders, and together achieved the strong culture we see today which is based on safety, trust and teamwork.”
“I would like to extend my sincere thanks to all our Gosowong employees who have contributed so much to the success of Gosowong and Newcrest over the past few decades. All of us at Newcrest wish our Gosowong colleagues and Indotan all the best for the future.”
Newcrest expects to recognise a $44m loss on divestment of its 75 per cent interest after taking into account the sales proceeds less written down value of the assets sold and transaction costs.
Of the $90m, $60m has already been received and the remaining $30m is payable in 18 months.