PT Newmont Nusa Tenggara responds

PT Newmont Nusa Tenggara responds

Kumoro Utoyo's April 4, 1996 letter comments on the recent
announcement by Newmont Gold and Sumitomo to jointly develop the
Batu Hijau copper-gold deposit in Sumbawa, West Nusa Tenggara. He
speculates how this development might affect the local people's
lives.

Our company has just completed an engineering feasibility
study at Batu Hijau and we are in the final stages of documenting
a comprehensive environmental impact study. An important part of
this work has been a study of the social environment in the
immediate area of the proposed mining project so that we might
better understand local needs and aspirations. Since late 1994 we
have worked closely with the bupati (regent) of West Sumbawa and
the Nusa Tenggara Barat provincial government to ensure that any
new mine development is well understood locally and is integrated
with other provincial development plans.

At present the Batu Hijau project employs around 330 people,
most of them local. Once construction starts the project
workforce will swell to 5,000 and we will continue our policy of
hiring and training local Sumbawan people first. In 1992 we began
a training and development program for field staff to transfer
modern exploration technology skills. We have already taken the
first steps to expand that program to train local people for
future mining and processing operations.

Greenfields mining projects such Batu Hijau can be important
catalysts for regional economic development, particularly in
eastern Indonesia. Both Newmont and Sumitomo are keenly aware of
their responsibilities to local people and to the government in
developing this massive project. In taking a pro-active approach
to community development and staff training from the very
beginning we hope the people of Sumbawa and West Nusa Tenggara
will be as proud of Batu Hijau as we are, and that Kumoro Utoyo's
fears will prove unfounded.

J.A.S. DOW

President Director

PT Newmont Nusa Tenggara

Jakarta