Newmont says delay in forestry permit to impact Batu Hijau ops

US mining giant Newmont Mining Corp said delay in forest use permit extension for its Batu Hijau copper and gold mine in West Nusa Tenggara could negatively impact the mine?s operations.

The company reported Wednesday that it had been in discussions to extend forest use permit (called a Pinjam Pakai) for over three years.

This permit is a key requirement to continue to efficiently operate the Batu Hijau mine, the company said.

?The permit extension has not yet been received and the resulting delay could have an adverse impact on operating and financial results,? the company said.

?PT. Newmont Nusa Tenggara (PTNNT) is reviewing and revising its mine plans to take into account the expected delay in renewal of the Pinjam Pakai and has deferred certain expenditures.? PT NNT is the unit that runs the Batu Hijau mine.

?In 2005, relevant Indonesian governmental authorities reviewed the contractual requirements for extension of the Pinjam Pakai and determined that we meet those requirements,? it added.

The company did not disclose when the current Pinjam Pakai permit expired.

Indonesian government and Newmont had been in dispute in international arbitration court over the divestment process of shares of PT.NNT. Under the contract of work, PTNNT is required to gradually divest 31 percent shares owned by its foreign shareholders to Indonesian-owned entities.

Newmont currently has a 45% ownership interest in the Batu Hijau mine, held through the Nusa Tenggara Partnership (NTP) with an affiliate of Sumitomo Corporation of Japan. Newmont has a 56.25% interest in NTP and the Sumitomo affiliate holds the remaining 43.75%. NTP in turn owns 80% of PTNNT. The remaining 20% interest in PTNNT is owned by Indonesian firm P.T. Pukuafu Indah. (alex)