Newmont's gold yields surge in first quarter

Newmont's gold yields surge in first quarter

JAKARTA (JP): Private gold mining company PT Newmont Minahasa
Raya (PTMNR) reported an increase in gold production to 58,000
ounces in the first quarter of this year, 49 percent more than
the 39,000 ounces produced in the same period last year.

Company general manager Paul Lahti said the increase was due
to growing mining and processing operations and the improved
infrastructure in the Messa area of North Sulawesi.

"The increase in production has also helped to offset the
negative impact of the depressed gold price market," Lahti said.

Lahti said the company intended to stick to its planned mining
and processing operations.

"Hopefully, by virtue of trickle down economics, local
businesses will continue to benefit from our operation. Newmont
purchases many of its supplies and materials for daily operations
locally," Lahti said.

Lahti added that the company's commitment to developing
business and infrastructure in the local area, and initiatives to
provide basic foodstuffs to lower income residents would continue
as planned.

He said that a public market and terminal facility had just
been constructed. "Construction of a community health center and
a school library is currently underway," he added.

Newmont Minahasa is 80 percent owned by Newmont Gold Company
of the United States. The remaining 20 percent is owned by local
company PT Tanjung Serapung.

PT Newmont Nusa Tenggara also reported that 40 percent of the
construction works for a gold and copper mining project in
Jereweh district, Sumbawa, West Nusa Tenggara, had been completed
despite the monetary crisis.

Construction of the Benete port, township and access road had
been completed and an electricity supply installed, the company
reported.

A meeting to discuss how to lessen the blow to the local
economy resulting from a decline in required labor in the next
phase of the project took place between the company and the West
Nusa Tenggara administration.

Four thousand six hundred workers are currently employed by PT
Fluor Daniel Indonesia, Newmont's construction contractor, in the
Batu Hijau area of the island.

PT Newmont Nusa Tenggara, established in 1986, is 45 percent
owned by Newmont Gold Company. Sumitomo Corp. of Japan holds a 35
percent stake and the remainder is owned by PT Pukuafu Indah, a
local company controlled by businessman Jusuf Merukh.

The construction phase on the project is expected to last for
approximately 36 months. The mine will have a production period
of between 22 and 30 years and a production capacity of 120,000
tons of ore per day, 1,589 tons concentrate production per day,
copper production of 203,000 tons per year, gold production of
14.1 tons per year and silver production of 45.6 tons per year.
(gis)