Newmont?s Batu Hijau Q1 copper production up, net cash costs down

Denver-based mining giant Newmont Mining Corporation said Wednesday its equity copper production from the Batu Hijau copper and gold mining complex in West Nusa Tenggara reached 85.67 million pounds in the first quarter of 2003, an improvement compared to last year?s corresponding quarter of 74.63 million pounds.

Batu Hijau?s total copper production in the first quarter of 2003 was 152.308 million pounds, versus 132.689 million pounds in the previous quarter?s corresponding period.

Newmont said its production was made under a 26 percent reduction in net cash costs from the year ago quarter of $0.42 per pound to $0.31 per pound in this quarter. The company said the reduction was mainly due to significantly higher gold by-products credits.

?Copper sales for the quarter were 3 percent higher than the first quarter of 2002 as higher tons processed (+7 percent) and higher average grade (+8 percent) more than offset marginally lower recoveries,? Newmont said in its quarterly report.

Newmont recorded equity sales of 69.84 million pounds of copper and 54.3 thousand ounces of gold in this quarter.

The company further said the Batu Hijau?s average copper price per pound during the quarter was slightly down to $0.76 from $0.77 per pound in last year?s corresponding quarter.

According to the report, the Batu Hijau processed around 12.58 million of dry ore with an average copper grade of 0.69 percent during the first quarter of 2002. The mining complex produced around 152.30 million pound of copper in this quarter.

Newmont operates the Batu Hijau through its 56.25 percent-owned unit, PT Newmont Nusa Tenggara.(robert)