Newcrest closes gold mine on Halmahera<\/p>\n
MELBOURNE (Dow Jones): Unrest on the Indonesian island of
\nHalmahera has again forced Australia's Newcrest Mining Ltd. to
\nshut its Gosowong gold mine and evacuate staff.<\/p>\n
Some 300 people have been shifted to Manado, since violence
\nescalated on the island last week. Eight people died and another
\n18 were injured on Halmahera last Friday and Saturday in
\nreligious clashes, according to the official Antara news agency.<\/p>\n
This is a \"precautionary measure\" following further civil
\nunrest in the northern part of Halmahera island, the company said
\nin a statement.<\/p>\n
Newcrest said the mine won't reopen until \"stability is
\nreestablished.\"<\/p>\n
Similar troubles at Gosowong last year have already wiped the
\nvalue of the mine off Newcrest's share price, but further
\ndisruptions could still damage the company's cashflow and its
\nappeal relative to other Australian producers, said analysts.<\/p>\n
Shares in Newcrest Mining fell 4.6 percent, or 20 cents, to
\nA$4.15 on the Australian Stock Exchange Tuesday while the gold
\nsector fell 1.9 percent. The broader market lost 0.6 percent.<\/p>\n
Newcrest owns 82.5 percent of Gosowong and the balance is held
\nby PT Aneka Tambang, a gold and nickel producer controlled by the
\nIndonesian government.<\/p>\n
No threats have been made against the mine or its employees,
\nthe company said.<\/p>\n
Gosowong poured its first gold in July, and is designed to
\nproduce 154,000 ounces of gold a year over a five-year period.<\/p>\n
Production has been running at a higher annualized production
\nrate as the mine works through high grade ore. In the quarter
\nended Dec. 31, Gosowong produced 81,291 ounces of gold,
\nrepresenting 30.8 percent of Newcrest's total output of 263,898
\nounces for the period.<\/p>\n
In August, the mine had to close for nearly a week due to
\nunrest at two villages about 30 kilometers away, and in October
\nthe mine was operating with skeleton staff due to similar
\ntroubles.<\/p>\n
Last week, Iluka Resources Ltd.'s 75 percent owned PT Koba Tin
\nunit halved its output at operations on Bangka Island due to
\nincreasing tensions in the province.<\/p>\n
Koba Tin, which is 25 percent owned by the Indonesian
\ngovernment's PT Timah, \"has been affected by a breakdown of law
\nand order in the region resulting in the uncontrolled theft of
\ntin concentrate from the production sites,\" ILuka said.<\/p>\n
Broken Hill Proprietary Co. and Rio Tinto Ltd., the largest
\nAustralian resource companies with Indonesian operations, both
\nsaid they haven't been affected by the unrest.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/newcrest-closes-gold-mine-on-halmahera-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}