Newmont's gold production estimated at 118,171 ounces in 2002: Official

PT Newmont Minahasa Raya which operates a gold mine in North Sulawesi will likely see its annual gold production of this year reaching only 118,171 ounces or about 3799.71 kilograms, according to a government official.

Marly Gumalig, the head of the general mining section at the North Sulawesi office of mines and energy, said the sale of the 118,171 ounces of gold could amount to some US$32,792,452.5.

With that revenue level, the royalty PT NMR has to pay to the Indonesian government this year would total $327,924.525, Gumalig said. Last year?s royalty amounted to $926,513.34, he added. Gumalig however did not mention the volumes of gold produced by the company last year.

The Newmont royalty accounts for one percent of its total production value as stipulated in the working contract signed by the firm and the Indonesian government. Twenty percent of the royalty goes to the central government, while the North Sulawesi provincial government and the Minahasa regency government respectively receive 16 percent and 32 percent of it.

PT MNR, which is controlled by US giant miner Newmont Mining Corp., will cease operations in 2003.

In Indonesia, Newmont also operates copper and gold mining firm PT Newmont Nusa Tenggara. (*)