BRGM's Yanacocha, Cedimin Dispute Settled

Denver-based Newmont Mining (NYSE: NEM) and Lima-based Buenaventura (NYSE: BVN) have reached a settlement in a long-running dispute with France's state-owned BRGM and Normandy Mining (Australia) over ownership of Yanacocha gold mine and a separate Peruvian mining concern Cedimin. Terms include BRGM and Normandy together receiving US$80mn, half from Newmont in the form of common shares and half from Buenaventura in cash, Newmont said. In return, Newmont and Buenaventura will receive undisputed title to BRGM's former 24.7% interest in Yanacocha and Buenaventura will receive undisputed title to BRGM's 65% interest in Cedimin which originally owned 40% of Minas Conga and other Peruvian assets. The dispute stemmed from the mid-1990s when the French government planned to privatize BRGM's assets and transfer its holdings in Yanacocha and Cedimin to Normandy. Newmont and Buenaventura took legal action to enforce what they saw as their preemptive rights in Yanacocha. Buenaventura did the same for Cedimin, Newmont said. Peru's Supreme Court resolved the cases in Newmont's and Buenaventura's favors. BRGM sought international arbitration against the Peruvian state. Newmont and Buenaventura were not parties to the arbitration. Subject to closing, all pending litigation and arbitration claims will be dismissed, including BRGM's against the government of Peru, under the settlement, said Newmont. Buenaventura's chairman Alberto Benavides said the legal dispute had delayed his company and Newmont from combining their operations, something they had both wanted to do. Normandy's CEO Robert Champion de Crespigny said it expected to receive the money by the end of November which will go towards debt reduction and working capital.