Newmont reports lower gold output from Batu Hijau mine

By Ruli Setiawan

US-based Newmont Mining Corp reported that attributable gold and copper production during the third quarter at Batu Hijau mine in Sumbawa Island was 4,000 ounces and 19 million pounds, respectively.

The company said in a statement Thursday that coast applicable sales (CAS) of gold was US$846 per ounce and copper $2.74 per pound.

Gold production decreased 44 percent due to processing lower grade ore, lower recovery, and lower mill throughput. Copper production was in line due to higher copper mill recovery. Total tons mined increased by 12 percent as Phase 6 waste removal continues as planned.

Gold CAS decreased 24 percent per ounce due to lower costs allocated to gold on a co-product basis, lower operating costs and royalties, partially offset by lower production. Copper CAS increased 15 percent per pound due to higher costs allocated to copper on a co-product basis.

The company is maintaining its 2013 attributable gold production outlook of between 20,000 and 30,000 ounces at CAS of $2,100 to $2,300 per ounce including stockpile write-downs and $900 to $1,000 per ounce excluding stockpile write-downs.

The company now expects attributable copper production of between 70 to 75 million pounds. Copper production outlook has been revised due to lower than expected mill throughput and grades. The company continues to expect copper CAS of $4.70 to $5.10 per pound including stockpile write-downs and $2.20 to $2.40 per pound excluding stockpile write-downs.

Editing by Reiner Simanjuntak