Newmont reports higher gold, copper sales from Batu Hijau

US mining giant Newmont Mining Corp. reported on Thursday that January-March 2008 quarter gold and copper sales from its Batu Hijau mine in West Nusa Tenggara were in line with expectations, with 120,000 ounces of gold (54,000 ounces net to Newmont) and 105 million pounds of copper (47 million pounds net to Newmont) sold during the quarter.

The sales were higher than previous quarter?s figure of 84,000 ounces of gold and 91 million pounds of copper.

The company said Batu Hijau experienced extremely heavy rainfall during the first quarter of 2008, causing minor damage to pit infrastructure, as well as adding significant amounts of unexpected water to the pit, potentially limiting access high grade ore later in the year, as planned.

Expectations for 2008 production are contingent on the extent of dry season access during the third and fourth quarters, which could offset portions of the expected wet season production shortfall, it said.

As a result, the company now expects 2008 gold and copper sales to be between 100,000 and 130,000 equity ounces of gold and between 125 and 150 million equity pounds of copper, compared to original guidance of between 150,000 and 165,000 equity ounces of gold and between 155 and 165 million equity pounds of copper.

Potential production shortfalls due to restricted access in 2008 are expected to be recovered in 2009.

Newmont?s economic interest in Batu Hijau decreased to 45% from 52.875% on May 25, 2007. (alex/denny)