"There have been ongoing negotiations between the Group and the GOI regarding possible amendments to the CoW, with the GOI seeking to more closely align the CoW with current mining law introduced many years after the CoW was signed. The Group has been negotiating in good faith with the GOI, including in principle agreement to adopt prevailing taxes and royalties, with both parties envisaging that these negotiations would result in a CoW amendment agreement. To date no amendment agreement has been executed and negotiations are on-going. The most significant GOI request outstanding surrounds the requirement for staged divestment following commercial production. The GOI is seeking divestment to Indonesian entities commencing in the fifth year of production (20% divestment) through to the tenth year of production (51% divestment), versus the Group’s position of divestment of 40% at fair market value. While a specific divestment requirement does not apply to the CoW, this issue is being dealt with through on-going re-negotiations and it is possible that a divestment requirement will become applicable at some point. Notably, the GOI proposed sale pricing mechanism is unclear, and if adopted may result in divestment at a price lower than the market value"
thats taking all their hard work, and handing over control 51%.
NUS Price at posting:
32.0¢ Sentiment: None Disclosure: Not Held
