Placer, Newmont in talks

Placer, Newmont in talks

TORONTO (Reuter): Placer Dome Inc said it is talks with Newmont Gold Company over the Batu Hijau copper-gold find in Indonesia.

"I can confirm we have been in discussions with Newmont," said Placer Dome spokesman Hugh Leggatt. "They are still continuing and I cannot say when they will be concluded."

Newmont owns 80 percent of the lucrative property on the Indonesian island of Sumbawa with the rest privately-held.

"We've been talking with both parties who own the property," Leggatt said.

Newmont Gold's parent, Newmont Mining, has said it expects the property to come into production around the turn of the century. A feasibility study has been recently concluded.

While no production figures are available, the non-reserve resource base of the property is expected to hold 14.7 million ounces of gold, 27.6 million ounces of silver and 11.2 billion pounds of copper.

Newmont has said it is looking at how it will deal with the copper component of the production.

A Newmont spokesman said the company's policy is not to comment on negotiations.

Placer's 1994 production stood at 1.7 million ounces of gold and 40.4 million pounds of copper. Production figures and earnings for 1995 are expected to be released Feb. 22.