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S-mining giant Newmont Mining Corporation reported production of gold and copper at its Batu Hijau mine in West Sumbawa increased 43.15 percent and 25 percent, respectively, in the first nine months of 2010 compared to the same period a year earlier.

In the company’s official statement published Tuesday, the company said Batu Hijau’s gold output increased from 387,000 ounces as of September 2009 to 554,000 ounces as of the same period this year. Copper production also increased from 336 million pounds to 420 million pounds.

Newmont said the increase was “due to higher mill throughput, partially offset by lower recovery”.

Newmont, through its local business unit Newmont Indonesia Limited, owns 31.5 percent of PT Newmont Nusa Tenggara (PT NNT), the operator of the Batu Hijau mine.

The other shareholders are Sumitomo affiliate Nusa Tenggara Mining Corporation (24.5 percent), PT Pukuafu Indah (20 percent) and PT Multi Daerah Bersaing (24 percent).

The rise in production has also increased Newmont’s equity gold and copper production, which represents the produced amount owned by Newmont in the joint venture.

Newmont’s gold equity increased from 174,000 ounces to 276,000 ounces, while its copper equity increased from 151 million pounds to 210 million pounds.

Newmont said the company expected its 2010 equity gold and copper production at Batu Hijau to be between 310,000 and 340,000 ounces, and between 250 and 265 million pounds, respectively.

The Batu Hijau mineral deposits were identified in 1990 and the mine began operating in 2000. As of
the end of 2009, the mine’s estimated reserves were 11.47 billion pounds of copper, 11.57 million ounces of gold and 40.97 million ounces of silver.

Batu Hijau is expected to produce 777,000 ounces of gold and 573 million pounds of copper this year.

Newmont said that in the third quarter this year, the Phase 5 mining and Phase 6 waste removal at the mine were delayed “due to abnormally high ‘dry season’ rainfall, which restricted access to the bottom of the pit and resulted in processing a higher proportion of stockpiled ore”.

The company said it planned to suspend mining at the bottom of Phase 5 in the fourth quarter of 2010 and begin processing ore from its stockpiles. During the quarter, mining activity will be primarily for waste removal at Phase 6, which is expected to become the primary ore feed commencing in 2014.