Newmont reports increased Batu Hijau gold, copper production

US giant miner Newmont Mining Corp. reported on Wednesday copper production from its Batu Hijau mine in West Nusa Tenggara reached 204.2 million pounds during the third quarter of 2004, compared to 184.1 million pounds in the same quarter 2003.

The company said the increase in production was due to increased throughput and improved copper ore grades. The realized copper price for the third quarter was US$1.42 per pound, a 69% increase from the 2003 third quarter. Copper production cash cost increased significantly to $0.56 per pound from $ 34 per pound in the third quarter 2003, reflecting higher treatment and refining charges and higher mining and processing costs associated with harder ores.

Cumulative 9-month 2004 copper production reached 546 million pounds, versus 488.2 million pound in the same period 2003.

The company also reported higher third quarter gold production of 246,200 ounces, compared to 208,400 ounces in the same quarter 2003. The higher gold production was due increased throughput and higher ore grade processed.

Cumulative 9-month 2004 gold production reached 546,100 ounces, versus 480,700 ounces in same period 2003.

Newmont?s economic interest in Batu Hijau for the third quarter was 56.25%. Effective October 1, 2004, Newmont?s economic interest decreased to 52.875%, reflecting cumulative positive retained earnings at the end of the third quarter resulting in the initiation of dividend payments to the minority partner.(alex)