Newmont faces problems with Uzbek authorities

UzLand.Info June 22 Newmont Mining Corp., the world's biggest gold producer, said a court in Uzbekistan ruled the company's joint venture owed $36 million in taxes for the period 2002 to 2004. Tax authorities have restricted the bank accounts of the Zarafshan-Newmont joint venture, owned 50 percent by Newmont, and may attach the assets, the Denver-based company said today in a filing with the U.S. Securities and Exchange Commission. Newmont, which plans to appeal the ruling, said the book value of its ownership in the venture was $92 million. Newmont said the ruling was in error because Uzbekistan's Ministry of Justice gave the company written confirmation that a decree protecting the joint-venture from tax-law changes had been in effect. Newmont spokeswoman Deb Witmer didn't immediately return a telephone message to her office after business hours. ``We're still evaluating our legal rights and following the situation closely,'' said Newmont spokeswoman Maureen Upton in a voice mail. Upton didn't comment further. For the first quarter, Newmont sold 29,300 ounces of gold from its Zarafshan operations, down 14 percent from 34,200 ounces a year earlier, the company said in April. Newmont shares fell $1.01, or 2 percent, to $49.51 in New York Stock Exchange composite trading, and have dropped 7.3 percent this year.