NEM Newmont Corporation

Newmont Mining Corp. said Thursday that it would sell its stake in an Indonesian copper and gold mine for $920 million and contingent payments of up to $403 million.

Newmont is selling its 48.5% economic interest in PT Newmont Nusa Tenggara, the operator of the open pit Batu Hijau copper and gold mine in Indonesia, to PT Amman Mineral Internasional.

"Selling our stake in PTNNT for fair value is aligned with our strategic priorities to lower debt, fund our highest margin projects and create value for shareholders," Newmont Chief Executive Gary Goldberg said.

Nusa Tenggara Mining Corp., majority owned by Sumitomo Corp., has also agreed to sell its ownership stake to PT Amman.

The deal is expected to close in the third quarter pending regulatory approval and other closing conditions.

In its most recent quarter, Newmont said its profit fell sharply as it was hurt by higher expenses and declining commodity prices.

The price of gold has risen 13% in the latest 12 months as the price of copper has fallen 16%.

Newmont shares, up 41% in the last three months, were inactive in premarket trading.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

June 30, 2016 07:45 ET (11:45 GMT)

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