Newmont reports lower copper, gold sales from Batu Hijau mine

US giant miner Newmont Mining Corp. reported Wednesday copper and gold sales from Batu Hijau mine in West Nusa Tenggara decreased by 24 percent to 100 million pounds and by 25 percent to 75,000 ounces, respectively, in the first quarter of 2005 compared to previous year's corresponding quarter.

Newmont said access to ore in the lower portion of the pit was temporarily restricted as a result of pit wall sloughing and associated clean-up during the quarter. The mine plan sequence was revised resulting in the processing of lower grade stockpiles, some of which were scheduled to be processed later in 2005, the company said.

Newmont added that costs applicable to sales per pound of copper and per ounce of gold increased 45 percent and 66 percent, respectively, during the first quarter of 2005 from the first quarter of 2004 due to lower production, increased maintenance costs and higher lime consumption.

Newmont targets to sell around 635 million pounds of copper and 800,000 ounces of gold at costs applicable to sales of $0.45 per pound and $135 per ounce, respectively, from Batu Hijau mine this year. (robert)