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RI copper, gold output to fall in 2011
Source: Energy and Mineral Resources MinistryIndonesia’s copper and gold output is expected to fall by an average of 30 percent next year because of a mining site expansion plan by PT Newmont Nusa Tenggara that will temporarily reduce production capacity
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Source: Energy and Mineral Resources Ministry
Indonesia’s copper and gold output is expected to fall by an average of 30 percent next year because of a mining site expansion plan by PT Newmont Nusa Tenggara that will temporarily reduce production capacity.
The situation will extend until 2012, said director general for coal, minerals and geothermal Bambang Setiawan on Wednesday.
Newmont will expand its operation at the Batu Hijau mine in West Nusa Tenggara, Indonesia’s second largest copper and gold mine.
“The expansion of the mine area will [temporarily] lower [Newmont’s] production,” Bambang said.
The government expects copper production to reach 1,016,949 tons this year, up from the estimated figure of 868,171 tons for 2009. But, the government estimates that total output will also drop to about 644,098 tons in 2011.
As for gold, the government expects production to reach 115,998 kilograms this year, up from the 2009 estimated figure of 105,404 kilograms. In 2011, it is estimated that gold production may fall to 91,171 kilograms.
PT NNT’s public relation manager Kasan Mulyono confirmed the contents of Bambang’s statement.
“Production will drop significantly in 2011 because the grade of the mined ore will be lower,” he said in a text message.
Rubi W. Purnomo, Newmont’s spokesman for operations in Indonesia, said that PT NNT actually would mine more tons of material in 2011. “However, copper and gold production will decrease in 2011, because the ore material has different characteristics from that mined in 2010,” he said.
As of September 2009, gold sales from the Batu Hijau mine were 381,000 ounces, up from 185,000 ounces in the same period in 2008. Consolidated copper sales reached 342 million pounds, up from 201 million pounds in the comparable period in 2008.
However, neither Kasan nor Rubi gave any further details on the reasons for the drop in output predicted for 2011.
Copper and gold are among the primary mineral commodities exported by Indonesia. Other commodities include tin, iron ore and nickel. In general, the production of these commodities is expected to increase this year.
“[Economic] growth in China and India is expected to be normal again this year. As the two countries are the major commodity consumers, their growth is expected to reenergize the commodities [market],” Bambang.
The price of gold for immediate delivery rose by as much as US$8.82, or 0.8 percent, to $1,126.82 an ounce and stood at $1,124.52 by 11.23 a.m. London time, Bloomberg reported. Meanwhile gold for delivery in February rose in price by 0.6 percent to $1,125.20 on the New York Mercantile Exchange’s Comex unit.
