Photo: Newcrest Mining

Newcrest Mining Ltd. has signed an agreement to sell Newcrest Singapore Holdings Pte Ltd. (NSH), which owns a 75% interest in PT Nusa Halmahera Minerals (NHM) that operates the Gosowong mine in Indonesia, for a total consideration of $90 million in cash. The transaction also includes PT Puncakbaru Jayatama, which employs exploration personnel in Indonesia to PT Indotan Halmahera Bangkit (Indotan).

Newcrest will pay a deposit of $5 million upon execution of the sale and purchase agreement and $55 million when the transaction is complete. The remaining $30 million will be deferred until 18 months after completion.

The company said the sale of NSH follows a strategic review of the asset and complies with the amended Gosowong Contract of Work, which required Newcrest to sell down to at least 49% of PT NHM by June 30.

“Gosowong has been a valued part of our operating portfolio since we discovered it in 1993, with first production commencing in 1999,” Newcrest Managing Director and CEO Sandeep 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.”

Newcrest said it expects to take a $44 million loss on divestment of its 75% interest after taking into account the sales proceeds less written down value of the assets sold and transaction costs.