Wed, 31 Aug 1994

Deal on gold study

JAKARTA (JP): PT Newmont Nusatenggara, an American-Indonesian joint venture, has assigned Flour Daniel Inc. of the United States to carry out the first-phase optimization study of its project, aimed at gold and copper production on Sumbawa island.

In a statement made available here yesterday, the company announced that the study will determine the best way to develop, mine and process ore. It will also develop the configuration of related infrastructure requirements including a port, roads, power plant and accommodations for workers at the Batu Hijau contract area on the island.

It said that Batu Hijau, the largest single gold occurrence ever discovered by Newmont, contains an estimated 12.6 million ounces of gold, 25 million ounces of silver and 10 million ounces of copper.

Earlier this month, Newmont approved the start of construction on its Minahasa gold project in Sulawesi, which is expected to produce 1.8 million ounces of gold within 13 years.

Newmont Nusatenggara is 80 percent owned by Newmont Gold of the United States and 20 percent by PT Tanjung Serapung of Indonesia.(riz)