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)