Newmont Nusa Tenggara pays US$ 5.74 million royalties in Q3

Copper and gold miner PT Newmont Nusa Tenggara (PTNNT) said on Monday it had paid to the government about US$ 5.74 million in royalties for its exports of copper, gold and silver concentrates from this year?s third quarter.

The royalties was paid to the Ministry of Finance, through its account at Bank Indonesia (Central Bank), on Oct. 31, the company said in a press release.

The US$5.74 million royalties comprised of $5.15 million for copper concentrates, $ 524,962.9 for gold concentrates, and $25,242.89 for silver concentrates.

Since its operation on the island of Sumbawa in West Nusa Tenggara about two years ago, PTNNT?s royalty payment to the government had reached $ 27.5 million, the company said. The payment went in line with PTNNT?s working contract with the Indonesian government, and the decree of the Minister of Mines and energy dated Sep. 12,1992, it added.

In the first quarter of this year, ending March, PTNNT?s royalities received by the government amounted to $ 2.87 million, compared with the $ 4.80 million for the second quarter.

?PTNNT will continue to strongly hold its commitment to take an active part in the development of Indonesia in general, and in West Nusa Tenggara in particular,? the company noted.

Existing rulings stipulate that the West Nusa Tenggara government receives about 80 percent of the royalties coming from PTNNT.

Newmont?s Batu Hijau field contains reserves of 10.5 billion pounds of copper, and 111.8 million ounces of gold. It has a mine life of over 20 years.

Earlier, the company said it had planned to produce between 550 and 600 million pounds of copper and between 400,000 and 450,000 ounces of gold in its Batu Hijau operation this year.

US mining giant Newmont Mining Corp. controls 56.25 percent interest in PT Newmont Nusa Tenggara, which runs the mine, while Sumitomo Corporation of Japan holds 35 percent and an Indonesian company, PT Pukuafu Indah, holds the remaining 20 percent. (leo/robert)