Newcrest spends US$40.4m for exploration

JAKARTA (JP): The Indonesian subsidiaries of Australia's Newcrest Mining Ltd. has spent US$40.4 million to survey and explore gold resources across the country, a company official said over the weekend.

The project manager of PT Newcrest Nusa Sulawesi (NNS), Paul D., said the company had been actively exploring gold resources in the country for six years but so far, no production had been made.

Paul made the remarks in a meeting to explain NNS's activities to North Sulawesi governor E.E. Mangindaan in the provincial town of Gorontalo.

Paul was quoted by Antara as saying that Newcrest had contracts of works (COWs) to develop gold resources in West Sumatra, Sumbawa of West Nusa Tenggara, North and Central Sulawesi, Halmahera and Maluku.

The COWs for the development of gold resources in West Sumatra, Sumbawa, Halmahera are part of 65 Sixth Generation COWs signed last April; while the contract to develop gold resources in North Sulawesi and Central Sulawesi is part of seven Fifth Generation COWs awarded in 1994.

The West Sumatra contract areas are being explored by PT Newcrest Sumatra Minerals, a joint venture with PT Austindo Nusantara Jaya (ANJ) of the Tahija's family, which own 10 percent stake.

The Sumbawa resource is being explored by PT Newcrest Sumbawa Jaya, a joint venture with the Tahijas, who own 10 percent of the share.

The Halmahera resource is being developed by PT Nusa Halmahera Minerals, a joint venture with the publicly listed state mining company PT Aneka Tambang, which has a 10 percent stake.

The North and Central Sulawesi contract area is 90 percent owned by Newcrest and 10 percent by the Tahija family.

Paul told the governor that Newcrest Nusa Sulawesi had been exploring gold resource on 766,100 hectares in the Gorontalo and Bolaang Mongondow regencies, North Sulawesi and the Bual Toli- Toli regency, Central Sulawesi.

He said the exploration could take three years and, if the exploration was successful, the company could start feasibility studies and construction. Production was expected to start four years after the exploration is completed, he said. (jsk)