Newmont seeks extension of exploration period at Martabe mine

Gold mining company PT Newmont Horas Nauli has asked for an extension of its exploration permit in the Martabe area in North Tapanuli regency of North Sumatra, the Bisnis Indonesia newspaper reported in its Friday edition.

Nemont has sought a 1.5 year extension for its exploration permit.

"We hope that the request for the extension of the third phase exploration would be granted by the government," company public relation manager Rudi Purnomo said on Thursday in Medan.

Rudi said the Martabe mine was estimated to contain 92 tons of gold and 1,033 tons of silver. Of the 92 ton gold reserves, 86 tons are located in Purnama area, and 6 tons in Baskara.

Based on study, he said, the costs of the project would significantly jump thanks to earthquakes and heavy rainfalls that hit the area since late last year.

"For exploration phase 2005-2006, the company has allocated US$10.6 million and another $1.5 million for feasible study," Rudy said.

Newmont had already got two extensions of permit to explore the Martabe mine.(*)