Newmont Indonesia's copper, gold output up in Q1

American Copper and gold mining giant Newmont Mining Corp. said Tuesday in a quarterly report its copper and gold output dramatically increased in Batu Hijau mine, West Nusa Tenggara province.

The report stated that for the first quarter of this year, Batu Hijau produced 161.5 million pounds of copper and 125,400 ounces of gold, far higher than last year's corresponding period out put of 107.6 million pounds of copper and 69,000 ounces of gold. The report said the higher production was due to improved mill performance and the increase in the recovery rate.

The company reported that total cash cost per pound of copper, after gold credits, improved by nine percent or 5 cents to 48 cents in the recent quarter, while the average realized copper price declined 4 cents to 74 cents per pound in the first quarter of 2001, reflecting weakness in the spot copper market due to the global economic slowdown.

As a result, Newmont had an equity loss of US$4.4 million for its stake in Batu Hijau, versus an US$8.1 million loss in the 2000 quarter.

Meanwhile in Minahasa mine in North Sulawesi, gold output for the quarter was 102,900 ounces at a total cash cost of US$113 per ounce, slightly increased from corresponding period's output of 99,600 ounces.

Newmont Mining holds a 45 percent stake in PT Newmont Nusa Tenggara which operates Batu Hijau mine, while Japanese conglomerate Sumitomo Corp and local company PT Pukuafu Indah, which is controlled by mining magnate Jusuf Merukh hold 35 percent and 20 percent, respectively.

Newmont Mining holds 80 percent stake in PT Newmont Minahasa Raya, the operator of Minahasa gold mine, while local company PT Tanjung Serapung Raya owned by mining magnate Jusuf Merukh controls the remaining 20 percent.(*)