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PT. Newmont Nusa Tenggara (NNT).


Newmont Mining Corp (NEM) is one of the world's largest gold producers. Indonesia is one of the countries where the company is operating which also include the United States, Australia, Peru, Canada, Uzbekistan, Bolivia, New Zealand and Mexico.

In Indonesia, NEM is operating through its four subsidiaries, namely :

* PT. Newmont Minahasa Raya (NMR)

* PT. Newmont Nusa Tenggara (NNT)

* PT. Newmont Horas Nauli (NHN)

* PT. Newmont Pacific Nusantara (NPN)

PT. Newmont Minahasa Raya is now in the process of closure and PT. Newmont Horas Nauli is sold to Agincourt Resources. The only active company in Newmont Group is PT Newmont Nusa Tenggara, which is operating Batu Hijau mining area in Sumbawa Island, Nusa Tenggara.

PT Newmont Pacific Nusantara (PTNPN) is a services company to handle Newmont interest in Indonesia.

PT. Newmont Minahasa Raya

Toward a Closure

The company's mining used to be an open pit gold mine located 80 km south of the city of Manado in the Province of North Sulawesi, Indonesia. Mining ceased in October 2001, due to the depletion of the gold deposit. The mine is now in a phase of closure, however, mineral processing from stockpiles will continue throughout 2003. Full closure activities have been completed in 2004 with post operation environmental monitoring through to 2006.

Economic contribution to Indonesia provided by PT. Newmont Minahasa Raya (PTNMR) is in the form of royalties, taxes and an indirect benefit amounted to almost US$ 544 million up to 2005.

The physical closure was completed in 2004, while the post-closure activities, which include managing and monitoring environmental impact, are scheduled to be completed by the end of 2006.

PTNMR's gold production reached to its peak of 11,395 kg in 2000, then started to dropped to 10,155 kg when the company declared closing its mining operation. It dropped further to 1,990 in 2004 and none in 2005, when no longer, mining activities were conducted.

Silver production already stopped in 1999 after a relative small production in 1996-1998.

PT. Newmont Nusa Tenggara

PT Newmont Nusa Tenggara (PTNNT) is an Indonesian joint venture company owned 80% by Nusa Tenggara Partnership and 20% by PT Pukuafu Indah (Indonesia). Nusa Tenggara Partnership is owned 56.25% by Newmont Indonesia Limited and 43.75% by Nusa Tenggara Mining Corporation (Japan 35%). It was formed in 1986 to explore and eventually exploit under contract to the Government of Republic of Indonesia a Contract of Work area located on Eastern NTB.

PTNNT signed a 4th Generation of Contract of Work with the Government of Indonesia in December 1986. Following ten years of exploration, a US$1.8 billion construction project commenced in early 1997 and finished in late 1999 followed by commissioning/start up. Commercial production started on 1 March 2000.

Batu Hijau mining field

PT NNT is operating a large mining area called Batu Hijau. Batu Hijau is major gold-rich porphyry copper deposit typical of the islands of southeast Asia. These gold-rich porphyries are overwhelmingly hosted by composite stocks of diorite to quartz-diorite and, to a much lesser degree, more felsic compositions such as tonalite and monzogranite. The deposits tend to be characterised by a strong correlation between the distribution of copper sulphides (chalcopyrite and bornite) and gold as the native metal in addition to having a notably higher magnetite content. Gold typically occurs as minute (<10-15 micron) inclusions in the copper sulphides.

The project is located in the southwest region of the island of Sumbawa, in the sub-district Sekongkang and Jereweh, Sumbawa Regency, West Nusa Tenggara.

By December 2003, Batu Hijau's ore reserves were 1 billion tons containing 0.525% copper and 0.37 gram per ton gold or around 5.25 million to of copper 370 ton of gold. At the current production rate, Batu Hijau's mine life will continue until 2025. PTNNT is currently exploring other parts of its Contract of Work area such as the Elang prospect.

The mine is at an elevation of 1,476 feet (450 meters) above sea level, nine miles (15 kilometers) from the company--built port in Benete Bay. Once removed from the open pit by electric shovels and 240--ton haul trucks, the ore is crushed and conveyed four miles (6.4 kilometers) to the concentrator and through two grinding miles circuits and five flotation lines. The final concentrate is then pumped to the port, where it is filtered and then shipped to smelters in Asia and Europe.

Batu Hijau is an open-pit mine. Ore is transported to the primary crushers using P&H 4100 electric mining shovels and a fleet of 220t-capacity Caterpillar 793C mechanical-drive haul trucks. The mine typically handles around 600,000t/d of ore and waste, the ore grading an average 0.49% copper and 0.39g/t gold.

Following primary crushing, the ore is transported to the concentrator by an overland conveyor, 1.8m wide and 6.8km long. The concentrator circuit consists of two-train SAG and ball mills, followed by primary and scavenger flotation cells, vertical regrind mills and cleaning flotation cells to produce a copper-gold concentrate grading 32% copper and 19.9g/t gold. Counter-current decantation thickeners are used to dewater the concentrate to a slurry, which is pipelined 17.6km from the plant to the port at Benete. Here it is dewatered further, then stocked in an 80,000t-capacity storage area prior to shipment by sea.

There are considerable environmental challenges at Batu Hijau, including steep terrain and widely dispersed facilities stretching over 40km. The site has a tropical monsoonal climate with high rainfall, and an extended arid season with almost no rainfall. Other environmental considerations include significant seismic activity, with the associated risk of tsunamis, and acid rock drainage, not to mention the existence on site of an endangered species, the yellow-crested cockatoo.

Considerable environmental controls are in place, with ongoing recycling and reclamation a major feature and continual environmental monitoring undertaken both on and offshore.

Production and marketing

The company started its production in 2000, just one year before PT. Newmont Minahasa Raya ceased its mining operation in North Sulawesi.

Batu Hijau mining field producer copper, gold and silver. Copper producer in form of copper concentrate which is processed into copper metal which is ready for the market.

Copper concentrate production increased from 744 thousand dmt in 2000 to 909 thousand dmt in 2005 after its peak of 1,007 thousand dmt in 2004.

There is no domestic sale by PTNNT as all of its production are exported. All PTNNT's production are exported. Copper export started with relatively small volumes of 8,541 tons in 1999, then it rose drastically to 288,180 tons in 2000 and reached its peak of 323,575 tons in 2004 and dropped to 270,046 tons in 2005.

Gold export was more fluctuated with an increasing trend, from 10.197 tons in 2000 to 22,761 tons in 2005 with. Silver export followed the same develop fluctuating from 38,246 tons in 2000 to 67,343 tons in 2005.

PT. Newmont Horas Nauli

The third mining companies formerly controlled by Newmont Mining Corp. was PT. Newmont Horas Nauli. The company was a joint venture owned by Newmont (90%) and PT Austindo Nusantara Jaya (10%) formed to explore and eventually operate a mine on the Martabe field in North Sumatra. The Martabe Project was implemented under a Contract of Work between the Indonesian Government and PT Danau Toba Mining (Normandy) signed on 28 April, 1997. The contract of work area is located in South Tapanuli district, North Sumatra. With the acquisition of Normandy by Newmont in February 2002, PT Newmont Horas Nauli (PT NHN) manages the project.

On July 24, Newmont sold all of its 90 pct stake in PT Newmont Horas Nauli, which operates the Martabe mine to Agincourt Resources, an Australian listed gold company.
Copper, gold and silver production
by PT. Newmont Nusa Tenggara

Year Copper Copper Gold Silver
 Concentrate (ton) (kg) (kg)
 (000 dmt)

1996 - - - -
1997 - - - -
1998 - - - -
1999 - - - -
2000 744 236,006 9,948 37,797
2001 871 292,309 16,064 54,462
2002 935 298,312 15,319 56,184
2003 932 287,634 16,688 60,320
2004 1,007 320,200 22,359 70,307
2005 909 270,344 22,761 68,214


Gold and silver exported
by PT. Newmont Nusa Tenggara

Year Copper Gold Silver
 (tons) (kg) (kg)

1996 - - -
1997 - - -
1998 - - -
1999 8,541 362 895
2000 288,180 10,197 38,246
2001 299,210 16,765 59,469
2002 302,882 15,501 57,081
2003 287,442 18,679 60,284
2004 323,575 22,257 69,949
2005 270,046 22,761 67,343

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Title Annotation:COMPANY PROFILE
Publication:Indonesian Commercial Newsletter
Date:Feb 1, 2007
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