Newmont finally obtains mine building permit<\/p>\n
JAKARTA (JP): After waiting more than six months, Newmont Gold
\nCorp. of the United States said yesterday it had been given the
\ngreen light to build its gold and copper mine at Batu Hijau on
\nSumbawa island in West Nusa Tenggara.<\/p>\n
In a statement, Newmont said construction would begin
\n\"immediately\" with work on the port, generators, roads,
\naccommodation and telecommunication facilities.<\/p>\n
Newmont said it had been given all the other principal
\ngovernment approvals including the ANDAL (Environmental Impact
\nAnalysis) permit, issued last October, and a forestry permit --
\nallowing the forest area to be used for mining -- last week.<\/p>\n
\"Construction of the US$1.9 billion project is expected to
\ntake three years,\" it said.<\/p>\n
Newmont said Batu Hijau contained reserves of 12.1 million
\nounces of gold and 10.6 billion pounds of copper.<\/p>\n
The mine is expected to produce an average of 550,000 ounces
\nof gold a year and 270,000 tons of copper in a 20-year mine life.<\/p>\n
Initially it will employ 1,000 people but this will increase
\nto 5,000 during peak construction. It will permanently employ
\n2,300 people when operations begin.<\/p>\n
Headlines<\/p>\n
Newmont made headlines earlier this month when the government
\ndemanded a 10-percent stake in the project for the sake of
\nnational interest.<\/p>\n
Private local firms reportedly interested in the Batu Hijau
\nmine include the Barito Pacific group, controlled by businessman
\nPrayogo Pangestu, and the Citra group, controlled by President
\nSoeharto's eldest daughter, Mrs. Siti Hardiyanti Rukmana.<\/p>\n
On Wednesday, Newmont said it refused to bow to the demand and
\nwanted to stick to the terms of its contract of work, received
\nfrom the government in 1986.<\/p>\n
President of Newmont Nusa Tenggara, Eric Hamer, was quoted by
\nReuters as saying yesterday that he was \"very pleased\" with the
\nconstruction permit.<\/p>\n
\"Logic prevailed and we got the permit to construct ... we are
\nunder way,\" he said. \"Production, if we stay on schedule and have
\nnot missed too much time, should begin in early 1999\".<\/p>\n
Yesterday's statement said the government had issued an
\napproval of a partnership agreement between Newmont and Sumitomo
\nCorp. of Japan, which would give Sumitomo a 35-percent stake in
\nthe project.<\/p>\n
As a result, Newmont now owns 45-percent, Sumitomo 35 percent,
\nand PT Pukuafu Indah -- controlled by local businessman Yusuf
\nMerukh -- 20 percent.<\/p>\n
Newmont began exploration in Indonesia in 1984 and was granted
\na contract of work for an area which included Batu Hijau in 1986.<\/p>\n
Newmont said the government had delayed the construction
\npermit for more than six months and the approval of its
\npartnership with Sumitomo.<\/p>\n
Confirmation of the government's demand for a 10-percent stake
\nin Batu Hijau came shortly after an independent consultants'
\nreport on the Busang mine in East Kalimantan concluded that
\ngeological samples had been falsified and that the mine contained
\nno significant gold deposit. (pwn)<\/p>\n
Editorial -- Page 4<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/newmont-finally-obtains-mine-building-permit-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }