LATIN AMERICA SPECIAL — Court ruling in Newmont’s favor

An appellate court in Peru has issued a preliminary ruling in favor of Newmont Gold (NYSE) and Buenaventura (a Peruvian mining company) against France’s Bureau de Recherches Geologiques et Minieres (BRGM) and its subsidiary, Mine Or S.A. All are partners in the Minera Yanacocha, Peru’s largest heap-leach gold mine.

Newmont and Buenaventura, which together own 70.3% of Minera Yanacocha, filed suit against BRGM (which owns 24.7%) after it announced intentions to transfer its interest in the operation to an entity controlled by an Australian company, Normandy Poseidon. The suit seeks enforcement of a provision in the bylaws of Minera Yanacocha giving shareholders pre-emptive rights on the sale of any other shareholder’s interest.

Pending further action in the case, the court has suspended the right of Mine Or S.A., as a shareholder of Minera Yanacocha.

Newmont is the operating partner, with a 38% interest; Buenaventura holds 32.3%, and the remaining 5% is held by the International Finance Corp. (IFC).