Newmont cuts down mining activities by 40%

PT Newmont Nusa Tenggara (NNT) has cut down its activities at its Batu Hijau gold and copper mine on Sumbawa island, West Nusa Tenggara by up to 40 percent due to a delay in the extension of the land-use permit from forestry ministry, Kompas reported on Thursday.

NNT's General Manager for Operation Darren Hall said on Wednesday that if the forestry ministry did not renew the permit until the end of this year, the mining activities could be further cut down, which might lead to the reduction of the company?s workers.

He said that mining activities had to be cut down because the ministry?s permit for the use of a forestry area for the mine overburden had expired, while the other dump area in Tongolaka had been full up.

At present, the company operated only 90 of the existing 111 heavy mining equipment. ?By the end of this year, the company could operate only 70 of the heavy equipment,? he added.

NNT has a concession area of about 6,400 hectares. Since the start of its operation more than 10 years ago, the company has opened up 700 hectares of the concession area for mining operation, and another 450 hectares for overburden and mineral waste dumps.

The company employs about 4,000 workers. Around a half of the total workforce are engaged in mining operation, 25 percent in gold and copper ore processing and another 25 percent in supporting activities.

NTT is 45 percent owned by US mining giant Newmont Corp., 35 percent by a consortium led by Japan?s Sumitomo and PT.Pukuafu Indah, an Indonesian company controlled by businessman Jusuf Merukh, holds the remainder. (*)