Batu Hijau?s copper, gold sales down in Q2

Denver-based gold miner Newmont Mining Corporation reported Friday consolidated copper and gold sales from Batu Hijau mine in West Nusa Tenggara declined to 117.0 million pounds and 134,300 ounces in the second quarter of 2006 from 154.0 million pounds and 174,900 ounces respectively in the same period last year.

Newmont said in its quarterly report that copper sales decreased due to reduced mill tons processed, attributable to harder ore and lower ore grade milled in the quarter.

Consolidated sales for 2006 are expected to total between 430 and 450 million pounds of copper and between 400,000 and 455,000 ounces of gold, Newmont said.

Newmont also said it together with its Japanese partner in Batu Hijau, Sumitomo Corp, was in discussions with the government for an offer to sell a 3 percent interest in the mine.

A revised offer will be made in the third quarter of 2006, Newmont added.

Newmont is the operator of Batu Hijau and has a 52.875 percent economic (45 percent ownership) interest. (robert)