Newmont To Dispose Of All Copper Concentrate Domestically

Mataram, West Nusa Tenggara, Nov 11 (Antara) - PT Newmont Nusa Tenggara (PTNNT) has agreed to feed the smelter of PT Nusantara Smelting (PT NS) with its entire production of copper concentrate. PTNNT will supply PT NS with with mineral material under a Conditional Sales Purchase Agreement (CSPA)signed on Wednesday. With the CSPA, the US mining company , which has large copper mine in Batu Hijau, West Nusatenggara, does not have to build a smelter of its own to comply with the government regulation that requires mining companies to process their raw minerals before being exported. The regulation bans exports of raw minerals starting next year. "CSPA is the best way out for all of us, both PT NS, PTNNT, and the government." President Director of PTNNT Martiono Hadianto said in news release issued on Wednesday. PT NS already announced its plan to build a new copper smelter and PTNNT agreed to supply copper concentrate to feed the smelter. Martiono said it is not feasible for a copper producer like PTNNT to build its own smelter or refining facility as the smelter would need larger or constant supply of concentrate. PTNNT, therefore, would comply with the government regulation by agreeing to be a supplier of copper concentrate for a smelter to be built by PT NS. "We support the government policy in requiring processing and refining of raw minerals domestically as ruled under the contract of work," he said. In addition to signing the CSPA with PT Nusantara Smelting, PTNNT also signed a memorandum of understanding with PT Indovasi Mineral Indonesia and PT Indosmelt. Under the MoU PTNNT would supply copper concentrate for the two companies, which have also announced plan to build copper smelter in Indonesia. "We will sell our entire copper concentrate at a reference prices to smelters in the country after we meet our commitment with PT Smelting," he said. President director of PT Nusantara Smelting Melvin Korompis said with the CSPA, his company`s plan to build another smelter in Indonesia would be feasible. PT NS already has a smelter in Gresik, but with limited capacity. "We are convinced after securing the guarantee from PTNNT and now hopefully PT Freeport Indonesia would give similar commitment. We could finish construction of the new smelter in 2018," Melvin said. PTNNT began its mining operation in Batu Hijau in 2000 under a contract of work . PTNNT has sold part or around 20 percent of its copper concentrate to PT Smelting, which is the only operator of copper smelter in Indonesia, with factory in Gresik, East Java. The supply is the largest PT Smelting could accept with the limited capacity of its facility. PTNNT PTNNT is an Indonesian unit of US mining giant Newmont Mining Corporation US mining company producing copper and gold under a contract of works signed in 1986. It is 56 percent owned by Nusa Tenggara Partnership BV , which is jointly owned by Newmont Mining Corporation and & Nusa Tenggara Mining Corporation of Japan. Local shareholders include PT Pukuafu Indah holding a 17.8 percent stake, PT Multi Daerah Bersaing holding a 24 percent stake and PT Indonesia Masbaga Investama 2.2 percent. PT Multi Daerah Bersaing is jointly owned by Bumi Resources, West Nusatenggara regional administraiton, West Sumbawa and Sumbawa district administrations . Nusantara Smelting PT Nusantara Smelting plans to build a new smelter for copper processing and refining with a capacity of 200,000 tons per year of copper cathode. It also will produce by products including anode slime 400 tons per year, sulfuric acid 600,000 tons per year and slag and gypsum. The project is to be completed by the end of 2018 to be operational at full capacity in 2019. The project is now in the phase of feasibility studies to be completed in 2015 before construction will start.