UPDATE 1-Newmont’s Indonesia unit says expects IPO in H2

(Updates with quotes, details)

JAKARTA, March 29 (Reuters) – Newmont Nusa Tenggara, a unit
of U.S. miner Newmont Mining Corp , plans to launch an
initial public offering in the second half of this year, said
the firm’s chief executive Martiono Hadianto on Tuesday.

Hadianto expects that the divestment of a remaining 7
percent stake required under Indonesian government rules will be
completed by April 18, paving the way for the offering.

The Indonesia unit of the world’s No.2 gold producer runs
the Batu Hijau copper and gold mine in West Nusa Tenggara
province.

Sources told Reuters earlier this month that it was looking
to raise about $500 million in an IPO by selling a 10 percent
stake within 12 months. [ID:nL3E7E81CO]

“The IPO funds will be used for working capital and
investment to develop Batu Hijau,” Hadianto said, declining to
reveal how much it expects to raise.

The IPO would mark the first listing by a gold and copper
miner on Indonesia’s stock exchange , which has dipped
this year after a two-year rally that came as investors bet on
the country’s abundant resources and growing economy.

The final divestment sale had been seen as a hurdle. Newmont
and Japan’s Sumitomo Corp , the majority owners in the
Newmont unit, were ordered by an Indonesian arbitration court in
2009 to reduce their holding in the firm to less than 50 percent
by selling to local investors.

Legal uncertainty is one the reasons Indonesia has struggled
to lure major new foreign investment in mining in recent years.

(Reporting by Fitri Wulandari; Editing by Neil Chatterjee)

UPDATE 1-Newmont’s Indonesia unit says expects IPO in H2