Newmont reports declined copper, gold sales from Batu Hijau mine

The United States-based giant miner Newmont Mining Corporation said on Thursday that its copper and gold sales from the Batu Hijau mine in West Nusa Tenggara decreased by 19 percent and 11 percent respectively in the second quarter of 2005, compared the second quarter of 2004.

Newmont said access to ore in the lower portion of the pit was temporarily restricted as a result of several small pit wall slides in 2005. As a result, the mine plan and pit design were revised, resulting in the processing of harder ores and stockpiles.

According to Newmont?s quarterly report, the Batu Hijau?s copper and gold sales reached 154 million pounds and 175,000 ounces, respectively, in the second quarter of 2005. Meanwhile, the mine?s copper and gold production was 162.9 million pounds and 183,800 ounces.

?As a result, the mine plan and pit design were revised, resulting in the processing of harder ores and stockpiles,? said Newmont, adding that the redesign could result in a slightly lower copper and gold sales in 2005.

Newmont projected that the Batu Hijau?s copper production would decline to 610 million pounds in 2005 compared to 683 million pounds last year. Meanwhile, gold sales slightly dropped to 720,000 ounces from 715,200 ounces in 2004. (robert/maya)

Batu Hijau	Q2 2005	Q2 2004	YTD 2005	YTD 2004
Consolidated copper sales (million pounds)??	154	190	254	321
Equity copper sales (million pounds)???	81	107	134	181
Consolidated costs applicable to sales ($/pound copper)???	$0.45	$0.38	$0.55	$0.43
Consolidated gold sales (000 ounces)	175?	198	250	298
Equity gold sales (000 ounces)	?93	111	132	168

Consolidated Gold and Copper	Equity sales	Consolidated sales	Consolidated costs applicables to sales
Indonesia Gold	(000 oz)	(000 oz)	($ / oz)
Batu Hijau	380	720	$150
Indonesia Copper	(million lbs)	(million lbs)	($ / lbs)
Batu Hijau	325	610	$0.50

Base Metal Summary	3 months ended June 30		6 months ended June 30
Batu Hijau	2005	2004	2005	2004
Tons Mined (000 dry short tons) Dry tons processed (000) Average copper grade Average recovery rate Copper produced (000 lbs) Copper sold (000 lbs) 154,001 Equity copper produced (000 lbs) Equity copper sold (000 lbs)	58,785? 12,301 0.75%? 80.2% 162,909? 154,001? 86,138? 81,428?	54,393 13,528 0.82% 79.4% 200,735 189,952 112,913 106,848	118,983? 24,589? 0.64%? 84.6%? 266,032? 254,089? 140,665? 134,350?	112,313 26,606 0.73% 88.3% 341,804 321,185 192,265 180,667
Production Costs Per Ounce: Direct mining and production costs Capitalized mining and other Royalties and production taxes Reclamation and mine closure costs	$0.36? 0.07 0.02 -	$0.28 0.07 0.03 -	$0.55? (0.03) 0.02 0.01	$0.31 0.10 0.02 -
Costs applicable to sales Depreciation and amortization	0.45? 0.13?	0.38 0.11	0.55? 0.18?	0.43 0.13
Total production costs	$0.58	$0.49	$0.73	$0.56