Companies eyeing to acquire Newmont?s N. Sumatra gold project

Several overseas and Indonesian companies are competing to acquire Newmont Mining Corp?s 90 percent stake in Martabe gold project, North Sumatra, a Petromindo source said on Wednesday.

The source said that state nickel and gold miner PT. Aneka Tambang, a company that was controlled by Indonesian mining magnate Jusuf Merukh, UK?s Avocet Mining, Australia?s Kingsgate Consolidated Mining and Emperor Mines Limited.

Newmont is planning to dispose of its 90 percent shares in Martabe gold because project?s reserves were to small for a big company like Newmont to manage.

Newmont Pacific Nusantara (NPN) spokesperson Nunik Maulana confirmed Newmont?s plan to dispose the mine. ?Newmont and the government is currently in the process of selecting the company which has capability to develop the project and manage responsible mining operations,? she said. She declined, however, to comment on the names.

Last month, Antam?s President Director Dedi Aditya Sumanagara said that Antam is looking to buy a gold mine in North Sumatra.

Newmont has 90 percent stake in PT. Newmont Horas Nauli which operates the project. The remaining balance is held by the Tahija family through PT.Austindo Nusantara Jaya.

Pre-feasibility study on the gold project conducted by previous owner Normany Mining in 2002 revealed that high returns from the project could be achieved from a heap or dump leach operation for a low entry capital of approximately US$30 million and operating cost of approximately US$105/oz, with an indicative average annual production of 150,000ozs. (alex)