Newmont to control N. Sumatra gold project on Normandy?s acquisition

The acquisition of Australian top gold miner Normandy Mining by US giant miner Newmont Mining Corp. will give the former control over a potentially profitable gold prospect in Martabe, North Sumatra.

Normandy?s discovery of Martabe gold prospect in is dubbed by industry analyst as ?the most important discovery in 2001?. Normandy controls 90 percent stake in PT. Horas Nauli, the gold prospect operator.

Normandy said the pre-feasibility study on the gold project had demonstrated that high returns 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.

For Newmont, Martabe project is potential to replace its North Sulawesi gold mine PT. Newmont Minahasa Raya that will cease operations in 2003.

In Indonesia, Newmont also operate giant copper and gold mining PT Newmont Nusa Tenggara. (alex)