Newmont cuts Indonesia copper, gold mine output forecast

Fri Sep 28, 2012 8:00am GMT
 

BATU HIJAU, Indonesia, Sept 28 (Reuters) - Newmont Mining Corp, the world's no. 2 gold producer, has revised down 2012 target production figures for its Indonesian mine, to 71,000 ounces of gold from 114,000 ounces previously.

Annual copper output from the Batu Hijau mine on Sumbawa island is now expected to be 170.6 million pounds, from an earlier forecast of 192 million, spokesman Rubi Purnomo told Reuters.

The lower forecasts come as Newmont processes lower grade ore from stockpiles as it prepares for a new phase of mining at the vast open pit in the mountains of Sumbawa. Production in the first six months of this year has been about 90 million pounds of copper and 40,000 ounces of gold, said Ian McGaffin, the mine's general manager, at the mine's headquarters.

Newmont has already flagged that its 2012 attributable Indonesian output is expected to be significantly lower, a factor that led the Colorado-based firm to post a 30 percent drop in second quarter profit. The Indonesian mine is also partly owned by Japan's Sumitomo Corp and Indonesia's Bakrie Group.

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