DJ Indonesia To File For Arbitration In Newmont Divest - Min

JAKARTA, Mar 03, 2008 (Dow Jones Commodities News via Comtex) --

Indonesia will file for international arbitration against the Indonesian unit of Newmont Mining Corp. (NEM), following the latter's failure to divest 10% of its stake in PT Newmont Nusa Tenggara by a Mar. 3 deadline, said a senior government official Monday.

"Newmont has failed to honor its contract with Indonesia, so we have decided to file for arbitration," said Yusgiantoro Purnomo, Indonesia's Energy and Mineral Resources Minister.

Indonesia will seek to terminate PTNNT's contract to operate in the country, Purnomo added.

Indonesia will file for arbitration proceedings against PTNNT with the United Nations Commission on International Trade Law Monday.

-By Edhi Pranasidhi and Fawziah Selamat, Dow Jones Newswires; 62 21 3983 1277; fawziah.selamat@dowjones.com

(END) Dow Jones Newswires

03-03-08 0220ET

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