Reva Sasistiya

Bakrie Consortium Turns Attention to Pukuafu’s NNT Stake

On the same day it purchased its latest stake in PT Newmont Nusa Tenggara, the consortium led by Bakrie group subsidiary PT Multicapital on Monday gave its clearest indication yet that it was eyeing PT Pukuafu Indah’s 20 percent stake in NNT — a stake that would bring it close to controlling 51 percent of the lucrative Batu Hijau copper and gold mine.

The consortium of three West Nusa Tenggara local governments and Multicapital, a unit of the Bakrie group’s PT Bumi Resources, late on Monday signed a deal to purchase an additional 14 percent of NNT for $493 million, which controls the Batu Hijau mine in West Nusa Tenggara, bringing its total stake to 24 percent. It bought a 10 percent stake earlier this month for $391 million.

Buying Pukuafu’s stake would bring the consortium to within 7 percent of a controlling stake in NNT and the mine.

Newmont is required to divest that 7 percent stake in NNT by March, according to its 1986 contract with the central government, which required that 51 percent of NNT be divested to domestic entities by March 2010. The consortium seems likely to also acquire that final stake.

Zulkifli Muhadli, head of the West Sumbawa district government, one of the consortium members, on Monday said Pukuafu had not contributed to the development of the province since it bought its 20 percent stake in 1986. “So it would be better for [the consortium] to acquire Pukuafu’s stake. It would benefit the local areas more,” he said.

Pukuafu representatives declined to say whether the company would consider selling.

In fact, last month Pukuafu filed several lawsuits against NNT claiming it had paid for an additional 7 percent stake last year, and had signed an agreement for another 3 percent stake. It claimed to be the rightful owner of the 10 percent stake NNT sold this month.

Analysts said a 51 percent stake in NNT would help the consortium and Bumi raise capital for the Batu Hijau mine and Bumi’s other operations.

Zulkifli said the local governments see the partnership with Multicapital as beneficial because they have not provided any funding but share in the dividends.

“Multicapital gave us a grant of over Rp 3 trillion [$318 million],” he said. “What would have benefited us more? Our position is almost equal in the consortium and we have the right to be involved in any decision-making process.”

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