Newmont pays higher royalties during first quarter

Copper and gold mine operator PT Newmont Nusa Tenggara (NNT) paid about US$2.87 million in royalties to the government during the first quarter of this year, Kompas reported on Saturday.

The royalties for this year?s Jan to March period are higher than the $2.52 million in royalties paid during the same period, last year.

Iradati Fuad, the Newmont spokesperson, said that the royalties had been paid to the government through the account of Minister of Finance at the central bank.

She said that total royalties paid by the United States-based company since its initial commercial production in late 1999 up to this year?s first quarter reached $17 million.

According to the existing regulation, 80 percent of the royalties should go to the local administration and 20 percent to the central government. Of the 80 percent, which should be paid to the local government, 16 percent should go to the provincial administration, 32 percent to the Sumbawa regency, the other 32 percent to other five regencies in the province.

Newmont Nusa Tenggara, one of the United States-based Newmont Corporation?s two Indonesian subsidiaries, operates a major coper and gold mine in Batu Hijau, Sumbawa, West Nusa Tenngara province.

The American company?s other Indonesian unit, PT Newmont Mianahasa Raya operates gold mine in Minahasa, North Sulawesi. (*)