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Jakarta (ANTARA News) - PT Newmont Nusa Tenggara (NNT) believed that its divestment process had been going on properly, and therefore was shocked to learn that it had been declared in default status.

"We are shocked to receive the letter on a default signed by the director general(of mineral, coal, and geothermal energy of the energy and mineral resources ministry Simon Sembiring)," spokesman for Newmont Rubi W Purnomo said in Jakarta on Monday.

He said that right now the legal division of Newmont is studying the default note.

Rubi also said that the foreign shareholders has a commitment to carry out the contract of work and ensured all the parties concerned a transparent and fair divestment.

The foreign shareholders, he added, had also completed a divestment deal of two percent with the Sumbawa regional administration on January 28, 2008.

"The energy and mineral resources ministry had already been informed about this, " he said.

The government today issued a note of default to NNT for its failure in the completion of the divestment of 10 percent of its shares.

Director General Simon Sembiring said that NNT was given until February 22, 2008, to complete the divestment process.

"This afternoon I have sent them a note of default. I have given them until February 22. If they still fail to heed this warning, the government will exercise its right of cancelling the contract of work with NNT unilaterally," he said.

He said that before February 22, NNT would have to complete meeting the agreement on the sales of three percent of its shares to the West Sumbawa regency administration and seven percent to the West Nusa Tenggara provincial administration.

In the hearing between the energy commission of the House of Representatives and Simon Sembiring on November 28, 2007 the government was also asked to take the necessary measures on the basis of the contract of work including a cancellation of the contract of work with the company of the divestment is not completed.

Under the contract of work, 51 percent of the foreign-owned shares in PT NNT will be divested in stages to the Indonesian government, 20 percent of which is already owned by Indonesia, while three percent of the remaining 31 percent will be divested in 2006, seven percent in 20078, seven percent in 2008, seven percent in 2009, and another seven percent by 2010.(*)

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