Batu Hijau?s copper sales down by 19% in 2005

The United States-based giant miner Newmont Mining Corporation said on Monday that total copper sales from the Batu Hijau mine in West Nusa Tenggara declined by 19.3 percent to 572,749 million pounds last year compared to 683,279 million pounds in 2004, while, the mine?s gold sales volume slightly increased to 720,500 ounces from 715,200 ounces, respectively.

In its quarterly report, Newmont said copper sales from the mine decreased 22 percent in the fourth quarter of 2005 to 128,691 million ounces from the fourth quarter of 2004, primarily due to an 18 percent decrease in ore milled and a 10 percent decrease in ore grade.

Meanwhile, the mine?s gold sales remained constant in the fourth quarter of 2005 from the fourth quarter of 2004 as an 18 percent decrease in ore milled was offset by a 15 percent increase in ore grade.

Newmont also reported that costs applicable to sales per pound of copper and ounce of gold increased 25 percent and 19 percent, respectively, during the fourth quarter of 2005 from the fourth quarter of 2004.

Operating costs increased primarily as a result of higher fuel, maintenance, consumable, power and labor costs, Newmont added.

Newmont has 52.88 percent interest in Batu Hijau mine. (Robert)