Newmont Batu Hijau gold & copper output

Newmont Mining reported 9.5% increase in gold production in its Batu Hijau mine (PT Newmont Nusa Tenggara), while copper production surged 28%.

According to Newmont's second quarter financial report, gold output for six months of 2009 was 173,000 ounces, while copper at 201 million pounds.

Equity gold and copper sales during the second quarter at Batu Hijau in Indonesia were 48,000 ounces and 47 million pounds, respectively, in line with expectations, at costs applicable to sales of $229 per ounce and $0.58 per pound, respectively. 

Total costs applicable to sales were lower than expected as a result of lower diesel costs and a higher build in ore stockpile inventory. Costs applicable to sales allocated to gold were lower than expected due to the lower allocation of costs to gold as a result of co-product accounting. 

For 2009, the Company continues to expect equity gold and copper sales of between 225,000 and 250,000 ounces and 210 and 230 million pounds, respectively, at costs applicable to sales of between $280 and $320 per ounce and $0.50 and $0.65 per pound, respectively.

In April 2009, Newmont and Sumitomo paid the required $1.7 million of the GOI's arbitration costs and in May secured the release of 31% of PTNNT's shares pledged to the Senior Lenders. In addition, the 2006 and 2007 shares have been re-offered to the local and regional governments for $109 million and $282 million, respectively. In July, Newmont and Sumitomo and the GOI agreed to value the 14% interest in PTNNT, associated with the 2008 and 2009 divestiture shares at approximately $494 million ($3.526 billion for 100%) of PTNNT, and the 2008 and 2009 divestiture shares were re-offered to the GOI. (th/ya)

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