Sumitomo to invest $2.5 billion in Newmont copper and gold mining project

Japanese company Sumitomo will provide financing for the PT Newmont Nusa Tenggara (NNT),?s US$2.5 billion Bukit Elang copper and gold mining project, the Investor Daily Indonesia newspaper reported in its Thursday edition.

?Frankly speaking, Bukit Elang mining project is still in exploration stage. We have named it Elang prospect,? NNT public relations manager Kasan Mulyono told the Investor Daily on Monday.

He admitted that Sumitomo, a long time partner of NNT, has agreed to fund the project when Sumitomo met Minister of Mines and Mineral Resources Purnomo Yusgiantoro recently.

?We are optimistic that there are copper and gold deposits in Bukit Elang area. But the process will take long time to operate the mine,? Kasan said.

PT NNT is a joint venture company with 80 percent owned by Nusa Tenggara and 20 percent owned by PT Pukuafu Indah. Newmont Indonesia Limited owns 56.25 percent stake in Nusa Tenggara Partnership. The remaining 43.75 percent is owned by Nusa Tenggara Mining Corporation.

Ministry of Energy and Mineral Resources coordinator (directorate development program) MS Marpaung said the $2.5 billion investment will enter Indonesia in phases. (*)