International Arbitration Decision Issued Regarding Divestiture of Batu Hijau in Indonesia

Newmont Mining Corporation announced that the international arbitration panel delivered its decision pertaining to the dispute in regard to the divestiture of PT Newmont Nusa Tenggara’s shares. The Company, as a foreign shareholder in PTNNT, together with Nusa Tenggara Mining Corporation, an affiliate of Sumitomo Corporation of Japan, is required under the Contract of Work with the Government of the Republic of Indonesia to sell down a portion of its interest in PTNNT. Last year, a dispute arose in relation to how the divestiture process should proceed and the Government and PTNNT submitted the matter to international arbitration in accordance with the provisions of the Contract of Work.

In its decision, the arbitration panel ruled that the Government was not entitled to terminate the Contract of Work. The panel further ruled that PTNNT’s foreign shareholders had not followed the divestiture process required in 2006 and 2007. The panel granted the shareholders 180 days from the date of the decision to work with the Government to transfer the shares in PTNNT to the Government or its designee, as specified in the Contract of Work for 2006 and 2007. The panel also confirmed that the Government has a right of first refusal with respect to the 2008 shares.

“We are currently reviewing the decision and look forward to outlining a path forward with the Government to implement the arbitration panel’s decision,” said Richard O’Brien, President and Chief Executive Officer. “We are committed to following the divestiture process as required under the Contract of Work and clarified in the decision.”