Newmont says not in talks to sell N. Sumatra gold project

Indonesian unit of world top gold miner Newmont Mining Corp. said Monday it had been approached by a number of foreign and local firms about the possibility to sell its North Sumatra but said thus far no it hadn?t made any decision.

?A number of companies had made inquiries, but I?m not aware of any serious talks? said Noke Kiroyan, President Director of Newmont Pacific Nusantara.He did not give the companies' names.

Newmont?s Australian managing director Paul Dowd was quoted by agency as saying that gold deposit at its Martabe prospect in North Sumatra may be too small for Newmont to operate.

Drilling results on the advanced exploration project indicate potential for 3 million ounces of gold disseminated over several deposits, he said.

Rumor has it that Indonesian coal-mining house Bumi Resources, which has just expanded to gold mine operations, is interested to acquire the project from Newmont. But Bumi?s president director Ari Hudaya denied the rumor, saying that the company is currently focusing to increase coal production.

Bumi had recently signed deal to acquire Central Sulawesi gold mining project from Newcrest Mining Limited and another gold prospect in Northern part of Sulawesi.

Newmont got hold of Martabe through acquisition of previous owner Australian gold miner Normandy Mining in 2002.

Normandy said in 2002 the pre-feasibility study on the gold project had demonstrated that high returns from the project could be achieved from a heap or dump leach operation for a low entry capital of approximately US$30 million and operating cost of approximately US$105/oz, with an indicative average annual production of 150,000ozs. (godang)