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)