Gold mining set to start in Sumbawa<\/p>\n
NEW YORK (Reuter): Newmont Gold Co. and Sumitomo Corp. have
\nagreed in principal jointly develop and operate the Batu Hijau
\nProject, a large copper\/gold porphyry deposit on the Indonesian
\nisland of Sumbawa, Newmont Gold said Tuesday.<\/p>\n
It is 90 percent owned by Newmont Mining Corp.<\/p>\n
In a statement released in New York, the company said the
\nproject means an expenditure of about US$1.5 billion for an open
\npit mine, mill, and infrastructure including employee housing, a
\nport and electrical generation facilities. Construction is
\nexpected to take about three years.<\/p>\n
The arrangement is subject to completion of a definitive
\nagreement and approval by the boards of both companies and
\nappropriate consultation with the Indonesian government.<\/p>\n
PT Newmont Nusa Tenggara, an 80-percent owned subsidiary of
\nNewmont Gold, holds a Contract of Work area on the islands of
\nSumbawa and Lombok of some 198,000 hectares.<\/p>\n
Batu Hijau, located within the Contract of Work area, was
\ndiscovered by Newmont in 1990, the company said.<\/p>\n
The find contains a resource of 11.2 billion pounds of copper
\nand 14.7 million ounces of gold, Newmont continued.<\/p>\n
Under terms of the proposed agreement, Newmont Gold will
\nretain a 45 percent interest in the Batu Hijau Project. Sumitomo
\nwill have a 35 percent interest. The remaining 20 percent is held
\nby an Indonesian company, PT Pukuafu Indah.<\/p>\n
Newmont said Batu Hijau is expected to produce some 245,000
\nshort tons of copper and 500,000 ounces of gold per year in
\nconcentrates over an anticipated mine life of greater than 20
\nyears.<\/p>\n
Over the past decade, Newmont has spent $70 million in
\ndiscovering and developing Batu Hijau, it said.<\/p>\n
Upon execution of the Joint Venture Agreement, Sumitomo will
\nmake an initial investment in the project equal to its pro rata
\nshare of Newmont's investment through closing.<\/p>\n
Sumitomo will make an additional payment of about $100 million
\nwhich will be applied toward Newmont's share of future
\ndevelopment and construction costs and will fund its own pro rata
\nequity share. Sumitomo will also provide or arrange for 60
\npercent of the project's financing requirements up to $800
\nmillion, Newmont said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/gold-mining-set-to-start-in-sumbawa-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}