Newmont reports sharp decline in Batu Hijau gold, copper sales

US gold and copper mining giant Newmont Mining Corp. reported on Wednesday that gold and copper sales from its Batu Hijau mine fell sharply during the third quarter of 2008 due to lower throughput, grade and recovery and a delay in the final scheduled shipment of September 2008.

The company sold 28,000 ounces of gold and 44 million pounds of copper, a 86 percent and 73 percent drop compared to 200,000 ounces of gold and 163 million pounds of copper in the year ago?s the same period.

?Mill throughput was 36% lower for the quarter due to processing harder ores and blending limitations as a majority of the ore was sourced from stockpiles and Phase 5. These ores were lower grade and resulted in lower recovery than the Phase 4 ores processed in the third quarter of 2007,? 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 water to the pit, delaying planned access to higher grade Phase 4 ore in the bottom of the pit in the third quarter of 2008.?

The company said average realized copper price decreased to $2.01 per pound in the third quarter of 2008 from $3.34 per pound in the third quarter of 2007.

Despite the sharp decline, Newmont continued to expect copper and gold sales at Batu Hijau to be between 280 and 330 million pounds of copper and between 220,000 and 290,000 ounces of gold.

Newmont has a 45 percent ownership interest in Batu Hijau mine, which is loacted in Sumbawa Isalnd, West Nusa Tenggara. (alex)

Batu Hijau copper, gold sales	Three Months Ended Sept. 30		Nine Months Ended Sept. 30
	2008	2007	2008	2007
Gold
Consolidated ounces sold (thousands)	28	200	185	374
Copper
Consolidated pounds sold (millions)	44	163	201	351