Newmont seeks arbitration in Indonesia

Newmont Mining’s Indonesian subsidiary, PT Newmont Nusa Tenggara (PTNNT), and the Government of Indonesia have filed notices for international arbitration, as provided for under the Contract of Work, to resolve claims by the Indonesian Government that PTNNT has not complied with its divestiture obligations.

“We are confident that we are in compliance with the Contract of Work and have invoked its dispute resolution mechanism to ensure our rights are protected,” said Richard O’Brien, President and Chief Executive Officer of Newmont.

“We have worked diligently and in good faith to complete the sale of PTNNT’s shares to Indonesian participants in accordance with the requirements of the Contract of Work, and will continue to do so even though arbitration notices have been filed. We remain committed to resolving this issue in a fair and transparent manner in accordance with the Contract of Work.”

In its filing, the Government of Indonesia acknowledged that the Contract of Work cannot be terminated until, and if, the arbitral tribunal would find a default and determine that termination would be a proper remedy.

“While our preference is to work out an amicable solution to divestiture,” added Mr. O’Brien. “We are pleased that the Indonesian Government has recognised the sanctity of the Contract of Work, including its dispute resolution mechanisms.”

The foreign shareholders of PTNNT reached agreement on January 28, 2008 with a local government to sell a 2% interest in PTNNT. Efforts to reach agreements to divest the additional 8% from the 2006 and 2007 divestiture shares continue.

The foreign shareholders have expressed concerns in regard to the integrity of the divestiture process in light of last Friday’s report in the Financial Times that a non-government business enterprise was working to acquire divestiture shares through the local governments.