Newmont projects 50% increase in gold output<\/p>\n
JAKARTA (JP): PT Newmont Nusa Tenggara (NNT), a subsidiary of
\nthe Denver-based Newmont Mining Corporation, expects to produce
\nbetween 550 to 600 million pounds of copper and 400,000 to
\n450,000 ounces of gold from its Batu Hijau copper and gold mine
\non Sumbawa island, West Nusa Tenggara province in 2001.<\/p>\n
The company said in a statement that the projected 2001
\nproduction represents an increase of approximately 20 percent in
\ncopper production and 50 percent in gold production over
\nprojected 2000 production of 495 million pounds of copper and
\n280,000 ounces of gold.<\/p>\n
\"We are continuing to successfully ramp up production at Batu
\nHijau and as we do so, our operating costs will decline,\" said
\nTom Enos, NNT's president.<\/p>\n
Production costs for 2001 are targeted at 55 cents per pound
\nof copper, after gold credits, and are expected to decline to
\nbetween 45 and 50 cents by 2004. Production costs for the first
\nnine months of 2000 were 63 cents per pound, after gold credits.<\/p>\n
He added that senior debt, principal and interest, for 2001
\namounts to 29 cents per pound and is expected to decline to
\napproximately 22 cents per pound by 2004.<\/p>\n
In the third quarter of 2000, the project generated equity
\nincome for the first time. Last month, it passed the lender's
\nfinal completion tests so that US$1 billion in project financing
\nis now non-recourse to the partners.<\/p>\n
PT NNT is a partnership, 20 percent held by PT Pukuafu Indah
\nand 80 percent by the Nusa Tenggara partnership, which is 43.75
\npercent owned by a consortium led by Sumitomo Corp. and 56.25
\npercent owned by Newmont Indonesia Ltd., a subsidiary of Newmont
\nMining Corporation.<\/p>\n
Batu Hijau is the largest ever start-up of a \"green fields\"
\nmining project. Located on the Indonesian island of Sumbawa, it
\ncontains reserves of 10.5 billion pounds of copper (5.7 billion
\nequity pounds for Newmont's interest) and 11.8 million ounces of
\ngold (6.4 million equity ounces) and has a mine life of over 20
\nyears. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/newmont-projects-50-increase-in-gold-output-1447893297",
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