Newmont?s Batu Hijau 2003 copper production down
Thursday, February 5 2004 - 03:05 AM WIB
Batu Hijau?s fourth quarter copper production was 145.6 million pounds versus 152.2 million pounds in previous year?s corresponding period.
Newmont said the 4 percent copper production decrease was due to marginally lower grades and recoveries.
Newmont also reported that despite production decrease, copper price improved from US$0.72 per pound in 2002 to $0.86 last year. ?As a result of higher metal prices, improved operating and financial results, and increased life of mine expectations regarding production, costs and economics, Batu Hijau will begin paying dividends in 2004,? Newmont said.
Batu Hijau contributed record equity income of US$21.1 million for the fourth quarter, benefiting from a realized copper price of US$1.05 per pound, 36 percent higher than the year ago quarter.
Newmont added that its 2003 equity gold reserves in the mining complex increased by 3 percent to 7.1 million ounces, while the equity copper reserves by 1 percent to 420 million pounds.
Newmont also reported that in 2003, its equity gold sales from Batu Hijau reached 328,000 ounces, up from 278,000 ounces in the previous year. Newmont currently has 56.25 percent interest in Batu Hijau, but will decrease to 52.875 percent starting this year, in recognition of the 6 percent net economic interest held by the project?s Indonesian shareholder. (robert/alex)
Batu Hijau Results
| Three months ended December 31, | Year ended December 31, | |||
| Batu Hijau | 2003 | 2002 | 2003 | 2002 |
| Total tons mined (000) | 56,798 | 55,223 | 231,073 | 240,484 |
| Total dry tons processed (000) | 12,868 | 12,728 | 49,819 | 51,754 |
| Average copper grade | 0.64% | 0.68% | 0.72% | 0.71% |
| Average recovery rate | 86.6% | 87.8% | 88.6% | 89.0% |
| Copper pounds produced (000) | 145,955 | 152,289 | 634,123 | 657,664 |
| Equity copper pounds produced (000) | 82,100 | 85,663 | 356,694 | 369,936 |
| Equity copper pounds sold (000) | 79,089 | 90,826 | 343,378 | 362,253 |
| Copper price per pound | $1.05 | $0.77 | $0.86 | $0.72 |
| Equity ounces of gold sold (000) | 66.2 | 77.8 | 328.9 | 278.0 |
| Equity net cash cost per pound | $0.36 | $0.30 | $0.23 | $0.31 |
| Equity non-cash cost per pound | 0.22 | 0.16 | 0.20 | 0.17 |
| Equity total production cost per pound | $0.58 | $0.46 | $0.43 | $0.48 |