Sumitomo in mine deal

Sumitomo in mine deal

TOKYO (Reuter): Japan's Sumitomo Corp said yesterday that it
and Newmont Mining Corp of the United States had signed an
agreement to develop the Batu Hijau copper/gold deposit in
Indonesia.

In March, Sumitomo and Newmont announced they had signed an
agreement in principle to develop, finance and operate the Batu
Hijau deposit, which has estimated resources of 11.2 billion
pounds of copper and 14.7 million ounces of gold.

"The two companies officially signed an agreement on the
copper/gold project today," Sumitomo said in a statement.

Newmont is to own a 45 percent stake in the project and
Sumitomo 35 percent, while an Indonesian partner will hold the
remaining 20 percent.

The project's cost is estimated at more than $1.5 billion, the
Japanese trading house said.

"Copper consumption in Asia is growing at around eight percent
per year, and the high growth is likely to remain," Sumitomo said
in the statement.

"The Batu Hijau copper/gold deposit project in Indonesia is
expected to be a key center of copper supply in this region," the
trading house said.