Indonesian oil magnate aims majority share of U.S.-affiliated mining firm

Indonesian oil and gas mining firm Medco Energy is aiming to take over majority share of the United States-affiliated mineral mining firm PT Newmont Nusa Tenggara operating in Indonesia's West Nusa Tenggara (NTB) province, planning to construct smelter to process the products in the country.

Medco Energy Senior Executive Arifin Panigoro said on Wednesday that his firm has allocated 2.2 billion U.S. dollars to acquire 76 percent share of Newmont Nusa Tenggara which is now controlled by multiple shareholders.

"Once the shareholders structure is changed, we are committed to making the smelter construction program a priority,"Arifin told reporters here on Wednesday.

He said that funds needed to construct the smelter may reach up to 600 million U.S. dollars, adding that the location would be decided later. It could be in Banten, West Java or in NTB instead, he added.

He said that the smelter was projected to have a capacity of 500,000 tons of processed mineral, or higher than 400,000 tons of the existing capacity.

Newmont Nusa Tenggara is a subsidiary firm of the United States-based Newmont Mining Corporation which controls 45 percent share of the firm. Japan's Sumitomo Corporation holds 35 percent of the firm's share and a domestic firm, PT Pukuafu Indah holds the remaining 20 percent. Endit