Newmont reports lower sales, production from Batu Hijau mine

US mining giant Newmont Mining Corp. reported on Thursday its Batu Hijau gold and copper mine in West Nusa Tenggara province sold 157 million ounces of gold and 157 million pounds of copper during the first half of 2008.

First half 2008 sales was lower compared to last year?s same period of 174,000 ounces of gold and 188 million pounds of copper.

First half 2008 production also declined to 115,000 ounces and 131 million pounds from 186,000 ounces and 205 pounds last year.

The company blamed below-expectations result on reduced production from lower throughput and recovery.

The de-watering program, developed to address the significant rainfall during the first quarter, has yielded better than expected results and may contribute to increased production during the dry season in the second half of the year, potentially offsetting portions of the second quarter shortfall, the company said.

The company has deferred capital associated with a planned mill expansion due to the delay in the Indonesian government's renewal of the company's forest use permit. The company now expects capital expenditures of approximately US$80 to $120 million, down from previous guidance of between $145 and $195 million, it said.

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