{"id":1163021,"date":"2020-01-31T12:53:45","date_gmt":"2020-01-31T18:53:45","guid":{"rendered":"https:\/\/www.mining.com\/?p=1012633"},"modified":"2020-01-31T12:53:45","modified_gmt":"2020-01-31T18:53:45","slug":"newcrest-divests-gosowong-for-60-million","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1163021","title":{"rendered":"Newcrest divests Gosowong for $60 million"},"content":{"rendered":"<p>Newcrest (ASX: NCM)&nbsp;announced Friday it has signed an agreement to sell 100% of Newcrest Singapore Holdings Pte Ltd (NSH) which owns a 75% interest in PT Nusa Halmahera Minerals (PTNHM), which operates the Gosowong mine in Indonesia, and 100% of PT Puncakbaru Jayatama (PTPJ), which employs exploration personnel in Indonesia to PT Indotan Halmahera&nbsp;Bangkit&nbsp;(Indotan).&nbsp;&nbsp;<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p><a href=\"https:\/\/www.mining.com\/newcrest-ready-to-divest-interest-from-indonesian-asset\/\"  rel=\"noreferrer noopener\" aria-label=\"The move comes after  (opens in a new tab)\">The move comes after <\/a>the Joko Widodo government issued&nbsp;a&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.mining.com\/indonesia-sets-framework-freeport-yield-control-grasberg-mine\/\" >mandate<\/a>&nbsp;in 2018 stating that major mines such as Gosowong or Freeport-McMoRan\u2019s (NYSE:FCX) Grasberg have to be at least 51% owned by Indonesian companies.&nbsp;<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p> Newcrest expects to recognize a A$44m loss on divestment of its 75% interest <\/p>\n<\/blockquote>\n<\/figure>\n<p>The&nbsp;Gosowong&nbsp;gold operation is located on Halmahera Island, about 2,450&nbsp;kilometres&nbsp;northeast of the national capital, Jakarta. It is a gold (epithermal and epithermal \u2013 low sulfidation) deposit, with additional occurrences of silver.&nbsp;<\/p>\n<p>Gosowong has produced 190,000 ounces of gold, and its all in sustaining costs  (AISC) were $1,099\/oz for the 2019 financial year. <\/p>\n<p>In its&nbsp;<a href=\"https:\/\/www.newcrest.com.au\/media\/financial_reports\/2019\/FY19_Results_Release.pdf\"  rel=\"noreferrer noopener\">2018\/19 Full Year Financial Results<\/a>, released last August 16, Newcrest Mining said it had started the process aimed at divesting a least a 26% interest from its current 75% ownership of&nbsp;Gosowong.&nbsp;<\/p>\n<p>The divestiture comprises a A$5m cash deposit paid on execution of the sale and purchase agreement, A$55m cash payable on transaction completion,&nbsp; A$30m deferred cash payable 18 months after completion for a total of A$90 million (US60.2 million).&nbsp;&nbsp;<\/p>\n<p>The sale of NSH follows a strategic review of the asset and to comply with the amended Gosowong Contract of Work, which required Newcrest to sell down to at least 49% of PT NHM by 30 June 2020, the Australian miner said <a href=\"https:\/\/www.mining.com\/Users\/astutt\/Desktop\/200131_Newcrest%20agrees%20to%20divest%20Gosowong%20for%20$90m%20-%20Market%20Release%20.pdf\"  rel=\"noreferrer noopener\" aria-label=\"in a press release (opens in a new tab)\">in a press release<\/a>.&nbsp;&nbsp;<\/p>\n<p>\u201cFollowing an extensive review and sale process we are pleased to be able to announce the sale of&nbsp;Gosowong&nbsp;to Indotan. This outcome delivers value for Newcrest shareholders and provides a clear future path for&nbsp;Gosowong&nbsp;for the benefit of its employees and the community,\u201d&nbsp;Sandeep Biswas,&nbsp;Newcrest\u2019s&nbsp;Managing Director and CEO said.&nbsp;<\/p>\n<p>\u201cGosowong has been a valued part of our operating portfolio since we discovered it in 1993, with first production commencing in 1999.&nbsp; 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, Biswas added.\u201d&nbsp;&nbsp;<\/p>\n<p>Newcrest expects to recognize a A$44m loss on divestment of its 75% interest after&nbsp;taking into account&nbsp;the sales proceeds less written down value of the assets sold and transaction costs.&nbsp;<\/p>\n<p>Friday morning, Newcrest\u2019s shares were down over 3% on the ASX.&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The move comes after the government issued a mandate in 2018 stating that major mines have to be at least 51% owned by Indonesian companies.<\/p>\n","protected":false},"author":47,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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