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Investment firm PT Multicapital Monday said it will partner with regional governments to buy 10% of Newmont Mining Corp.'s (NEM) Indonesian unit for about 4.1 trillion Indonesian rupiahs ($401 million).

Mines minister Yusgiantoro Purnomo Monday said an agreement may be reached with Newmont this week or next on the value of stakes in the Newmont unit, PT Newmont Nusa Tenggara, or PTNNT, which are due for divestiture.

The central government plans to buy a separate 21% stake in PTNNT.

Purnomo told reporters the government has set an upper limit of $3.7 billion on the total value of PTNNT. He didn't elaborate on the government's valuation of the individual stakes. Newmont has said PTNNT is worth $4.9 billion.

Hariyadi, a director at Multicapital, said the firm will partner with PT Daerah Maju Bersaing, or DMB, a joint company set up by the West Nusa Tenggara provincial administration and the Sumbawa and West Sumbawa districts to buy the stake in PTNNT.

Dileep Srivastava, a spokesman for coal producer PT Bumi Resources (BUMI.JK), said Bumi holds a minority stake of approximately 5% in Multicapital. Srivastava said other Bakrie-related companies also have stakes in Multicapital, but didn't elaborate further on the ownership of the company.

Bumi, which is controlled by the powerful family of Social Welfare Minister Aburizal Bakrie, previously failed in a controversial attempt to purchase stakes in PTNNT.

Newmont is scheduled to divest 51% of PTNNT to Indonesian parties by next year. Local firm PT Pukuafu Indah has purchased 20%, but divestiture of the remaining 31% of the company has been a source of controversy.

An international arbitration panel on March 31 gave the foreign shareholders of PTNNT - Newmont and minority partner Sumitomo Corp. - a 180-day deadline in which to divest 17% of PTNNT which was due to be sold between 2006 and last year. Newmont is also scheduled to sell 7% stakes in PTNNT both this year and next.

Bumi in 2007 planned along with the three local administrations to set up a joint venture that would eventually buy a total of 31% of PTNNT. Newmont said the plan undermined the divestiture process, and the deal eventually fell through.

Haryadi said Multicapital will receive 75% of revenue from the consortium's holdings in PTNNT, and DMB 25% of revenue.

The central government plans to buy the 21% of PTNNT not earmarked for the local administrations. The central government may also mandate state companies to buy the PTNNT stakes, or allow private companies to buy the unit. Purnomo said the three local governments are also interested in buying the entire 31% of PTNNT on offer.

PTNNT operates the giant Batu Hijau copper and gold mine on Sumbawa island in east Indonesia. Newmont owns 45% of PTNNT, and Sumitomo has a 35% interest.

Newmont expects the Batu Hijau mine 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.

-By Deden Sudrajat and Reuben Carder, Dow Jones Newswires; 62 21 3983 1277; Reuben.Carder@dowjones.com (Edhi Pranasidhi contributed to this story)