Deal on gold study

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)