Building smelter in Indonesia is not feasible: Newmont

PT Newmont Nusa Tenggara (NNT) says gold and copper shortfalls will halt its plans to build smelters in Indonesia, The Jakarta Post reported on Saturday.

According to the mining company?s feasibility study, building gold and copper smelters in Indonesia was not economical and might lead to severe financial losses, Newmont spokesperson Kasan Mulyono said on Friday.

?The study result suggests that it is not feasible to build smelters in the country. But we continue to communicate with the government about future possibilities,? he told reporters at a media briefing in Jakarta.

Smelters worldwide were currently operating below maximum capacity due to difficulties in finding raw materials, he said. He said that if the company rushed to build smelters in Indonesia they would collapse.

?We understand the spirit of the government to develop downstream industries in the gold and copper mining sector, but we can't risk our business. But we always keep our door open for further discussions with the government,? Kasan said. (*)