Newmont sets targets for new copper mining project
Newmont sets targets for new copper mining project
JAKARTA (JP): PT Newmont Nusa Tenggara's new US$1.85 billion
copper mining project in West Nusa Tenggara is set to produce
2,100 tons of gold and copper concentrate per day beginning next
year.
NTT spokeswoman Iradati Fuad said that when the processing
plant was operating at its installed capacity of 160,000 tons of
ore per day, the mine would produce 246,000 tons of copper
concentrate and 564 ounces of gold concentrate annually.
"Our mining contract in Batu Hijau on Sumbawa Island and
Lombok Island encompasses 116,900 hectares, out of which we
target a daily production of 2,100 tons of gold and copper
concentrate," Iradati told Bisnis Indonesia.
NNT announced plans to begin production last September.
But the Ministry of Mines and Energy said the company had
delayed its commissioning test scheduled for October until
production preparations were completed.
Iradati said the company planned to export its copper
concentrate to several Asian countries, with most of the exports
going Japan.
She said copper and gold deposits were found in Batu Hijau in
1990, and that eventual output from the mine was estimated to
reach 4.8 million tons and 390 tons respectively.
NNT has recruited some 14,000 workers for the new open mine.
To finance the project, NNT sought $1 billion from German,
American and Japanese financial institutions, while the remaining
$850 million was provided by the company's shareholders.
PT Newmont Nusa Tenggara is a subsidiary of the U.S.-based
gold producer Newmont Mining Corporation and is owned by Newmont
Indonesia Ltd. (45 percent), Japan's Nusa Tenggara Mining Corp.
(35 percent) and local investor PT Pukuafu Indah (20 percent).
Earlier in September, president of Newmont Indonesia Ltd.
Richard B. Neiss said the company would need an additional $150
million for working capital, environmental protection schemes and
housing facilities within the next two years.
He said the company spent some $400 million on local products
and services and had developed the island's infrastructure to
support its operation.
Infrastructure investments include a $310 million coal-
operated power plant capable of producing 120 megawatts, a $130
million port and a $365 million housing complex. (03)