Newmont expects Batu Hijau production to sharply decrease
Friday, February 25 2011 - 04:27 AM WIB
The company reported that 2011 gold production from Batu Hijau would be at the range of 226,000-288,000 ounces and copper production would range between 247 million-288 million pounds. In 2010, Batu Hijau produced 737,000 ounces of gold and 542 million pounds of copper.
Batu Hijau Attributable gold production was 88,000 ounces in the fourth quarter and 364,000 ounces in 2010. Attributable copper production was 59 million pounds in the fourth quarter and 269 million pounds in 2010. Costs applicable to sales were $243 and $237 per gold ounce and $0.81 and $0.69 per pound of copper on a co-product basis in the fourth quarter and 2010, respectively.
?Beginning in 2011, we expect to process stockpiled ore until Phase 6 ore becomes the primary mill feed commencing in late 2013, the company said.
The company also reported that it would carry out drilling at Elang copper and gold porphyry deposit lying 60 km east of the Batu Hijau mine.
? Increased gold and copper prices enabled the company to re-evaluate economic potential with positive preliminary results in an early-stage conceptual setting. Drill permits are approved for the deposit and a 6-10 km drill program is anticipated in 2011 to improve confidence in and possibly expand the consolidated 25 million ounces gold and 16 billion pounds copper target (based on a 3rd party JORC-compliant resource estimate effective June 2010),? the company said. (alex)