(REUTERS) -- Newmont Mining Corp , the world's second-largest gold producer, has agreed to renegotiate its mining contract with Indonesia's government, the mining minister said on Monday.

Newmont, along with Freeport, has agreed to renegotiate their long-term contract with us. It's good news since previously they said no, said Jero Wacik, the minister for mining and energy.

It is to guarantee fairness for both the government and the companies, he added.

Newmont's Indonesia unit runs the Batu Hijau copper and gold mine in West Nusa Tenggara province.