Newmont Secures $600 Million Loan from 3 Banks - The Indonesia Today

PT Newmont Nusa Tenggara (NNT) has secured US$600 million loan from three banks. The company also expects to spend US$8 billion this year for funding Elang Project.

The three banks are Bank Mandiri, BNP Paribas and Bank Sumitomo Mitsui, Kompas reported today. The fund is part of Newmont’s strategic step to cover up the capital inadequacy needs in exploiting new project.

Meanwhile, Newmont is developing Elang project in West Sumbawa, expected to have potential of 18 million ounce of gold and 18 billion pound of copper. The project said to have bigger area rather than Batu Hijau project.

“This year, the exploration cost for the project is US$8 million,” Senior Manager Arif Perdanakusumah told Media Indonesia. As for the next year exploration depends on the result of 2011 activity. The activities is expected to keep going until 2016 – 2017.

The company reported to socialize the people about the plan in near future. Sumbawanews.com reported the Traditional Residents Alliance (AMAN) Sumbawa claimed the socialization team has no preparation yet on facing the people. Previous schedule on 24 March was not commenced due to the problem.