Indonesia's government and Newmont Mining Corp. (NEM) have agreed that 14% of Newmont's local unit which it is scheduled to divest is worth $493 million, Energy and Mineral Resources Minister Purnomo Yusgiantoro told reporters Thursday.

Purnomo added that the government is waiting for permission from the finance ministry on whether it can buy the stake in the unit, PT Newmont Nusa Tenggara, or PTNNT.

The government may designate state-owned resources companies to buy the stake or allow private companies to buy it.

The 14% comprises stakes in PTNNT due to be divested to local buyers in 2008 and this year.

Under its contract of work, Newmont is required to sell 51% of PTNNT to Indonesian buyers by next year. The sale of stakes due to be divested between 2006 and last year have so far been delayed due to glitches in negotiations.

An international arbitration panel ordered Newmont in March to sell the delayed stakes within 180 days.

Local firm PT Pukuafu Indah has already bought 20% of the unit and a further 10% that was due to be sold in 2006 and 2007 has been earmarked for local authorities in West Nusa Tenggara, the province where PTNNT's Batu Hijau copper and gold mine is located.

The central government aims to buy the remaining 21% due to be sold, but may designate state companies, such as nickel producer PT Aneka Tambang (ANTM.JK), to buy the stake or allow private companies to do so.

Purnomo said Newmont has requested that negotiations for the final 7% of PTNNT, due to be sold in 2010, be put off until next year. The government had previously planned to buy the entire 21% in a single transaction.

Newmont currently owns 45% of PTNNT and Sumitomo has a 35% interest.

Newmont expects Batu Hijau to produce 455 million pounds of copper concentrate this year, up from 284 million pounds in 2008, and 486,000 troy ounces of gold this year, compared with 269,000 ounces in 2008.

Newmont officials weren't immediately available for comment.

-By Deden Sudrajat, contributing to Dow Jones Newswires; 62 21 3983 1277; Reuben.Carder@dowjones.com