Newmont pays Rp41 billion in q1 royalties to govt
Jakarta (ANTARA News) - PT Newmont Nusa Tenggara (NNT) has paid the Indonesian government Rp41 billion in quarter I (January-March 2008) royalties, PT NNT spokesman Kasan Mulyono said in his press statement here on Friday.
He said that the payment was done at the end of last April and was transferred to the account of the minister of finance.
The payment of the royalties was done in accordance with article 13 of the work contract between PT Newmont Nusa Tenggara and the Indonesian government as well as the letter of the general mining director general in 2000.
PT Newmont Nusa Tenggara has paid royalties amounting to US$150.3 billion to the government since its first shipment of concentrate in 1999, Kasan said.
PT Newmont Nusa Tenggara is an American-Indonesian joint venture whose shares are 80 percent owned by Nusa Tenggara Partnership while 20 percent belong to PT Pukuafu Indah (Indonesia).
The company was established in 1986 and has a license to do explorations and exploitation of mineral resources based on a work contract signed with the Indonesian government on an operation area in Batu Hijau, Sumbawa district, West Nusa Tenggara province.
Batu Hijau is an open mining site which is rich in copper condensate deposits with a small gold content.
So far, PT Newmont Nusa Tenggara has sent its condesate production to various melting factories in Indonesia and overseas for further processing.
PT Newmont Nusa Tenggara and the Indonesian government signed a work contract, generation 4, in December 1986. PT Newmont Nusa Tenggara also made another investment worth US$1.8 billion.
The ore reserves in Batu Hijau in December 2003 were recorded at one billion tons with a copper content of 0.525 percent and gold content of 0.37 gram per ton.
With the current level of production capacity, the deposits of the Batu Hijau mining site are expected to be depleted by 2025.(*)
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