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T Newmont Nusa Tenggara (PTNNT), a local subsidiary of US mining giant Newmont, paid Rp 3.9 trillion (US$416.55 million) in taxes and royalties to the government in 2009; a drop of about 7 percent from a year earlier.

In 2008, PTNNT paid the government as much as Rp. 4.215 trillion.

"This *lower payment* is because we mined lower grade ore in 2009 compared to that in 2008," PTNNT's public relations manager Kasan Mulyono said in an SMS Tuesday.

Included in the payout were taxes, non-tax payments, and royalties. Of the 2009 figure, the biggest payment was for corporate income tax of Rp 3.3 trillion, followed by royalties of Rp 239 billion and personal income tax of Rp 186 billion.

In 2008, the payment for corporate income tax was Rp 3.6 trillion; personal income tax Rp 169 billion, and royalties Rp 114 billion.

PTNNT operates Indonesia's second largest copper mine Batu Hijau in West Nusa Tenggara. The mine also produces gold. PTNNT said earlier that mine output would drop significantly in 2011 as the company would continue mining lower grade mineral ore.

The government said the lower copper and gold production from the Batu Hijau would have a negative impact on the resulting national output for the two minerals for several years.

The government estimates copper production will drop from 1,016,949 tons, which is the production estimation for this year, to about 644,098 tons in 2011.

As for gold, it is thought that gold production may fall from this year's estimated figure of 115,998 kilograms to 91,171 kilograms in 2011

PTNNT is owned 35.44 percent by Newmont Indonesia Limited; 27.56 percent by Nusa Tenggara Mining Corporation (an affiliate of Sumitomo Corporation); 20 percent by local company PT Pukuafu Indah, and 17 percent by PT Multi Daerah Bersaing (MDB).