Newmont Mining Corp.’s PT Newmont Nusa Tenggara subsidiary has announced that its Batu Hijau copper-gold mine will ramp down next month after copper concentrate storage space maxes out, barring receipt of an initial export permit from Ministry of Trade officials.
PT Newmont officials like President Director Martiono Hadianto, however, expressed strong willingness to work with the government. “We support the goal of increased domestic processing and continue engaging to resume exports and protect jobs, local businesses supported by the export and sale of Batu Hijau’s copper concentrate,” said Hadianto.
Despite having secured a precursor exporter status, said company officials, PT Newmont will, nonetheless, have to scale back pay, contracts, purchasing and expenditures by early June. Meanwhile, they added, water resource, environmental and physical safety controls at the Sumbawa Marat site will be implemented.
Although Batu Hijau will maintain copper concentrate shipping and sales to PT Smelting in Gresik, Indonesia, through Q4 2014, added Newmont officials, that facility’s own capacity limitations means it cannot buy adequate copper concentrate permitting normal Batu Hijau production.
“This is a very unfortunate situation for all of us, it will disrupt the lives of our 8,000 employees and impact thousands more who derive incomes from our operation,” added Hadianto.
