Starting a new thread on NEM to collect news over time.
http://www.miningweekly.com/article/peru-sees-ok-for-big-newmont-mine-details-to-come-2012-03-06Peru sees OK for big Newmont mine, details to come
Peru insists its biggest mining project to date, Newmont Gold's $4.8 billion Conga gold and copper project, will go ahead, although the final shape and form has yet to be decided.
Mine and Energy Minister Jorge Merino said the government, which has appointed a 3-person commission to review a favorable environmental impact study, was looking at ways to improve the project. Conga is set to produce up to 350,000 ounces of gold per year and 120 million pounds of copper its first five years of operation.
"The Peruvian state respects contracts that have been signed," Merino told Reuters during the Prospectors and Developers Association of Canada (PDAC) conference, the world's largest mining industry gathering.
An environmental impact study gave Newmont the green light for Conga in 2010. But authorities halted construction in November after violent protests by groups who fear it would pollute water sources. A government appointed panel is now reviewing the original study.
"What we are doing here is an analysis of how we can improve the environmental impact study, how we can improve on the issue of water," Merino said.
"It's the 'how' it will be done and the 'how' it will be improved," he answered when asked whether there will eventually be a Conga Mine.
The protests have forced the government of President Ollanta Humala to walk a fine line between respecting community demands and backing the pro-business line that helped get him elected.
Peru is the world's No. 2 producer of copper, silver and zinc and is Latin America's top gold producer. Mining accounts for 60 percent of exports, and a decade-long mining boom has brought economic and political stability.
But the sector faces growing criticism for failing to bring sufficient prosperity to communities, and critics say it pollutes their environment and wastes their water supplies.
Newmont says the project would guarantee year-round water supplies, in part by building reservoirs to replace lakes that would be affected by the mining.
The Conga dispute is one of 200 environmental conflicts that the Humala government is struggling to manage, and Merino assured a business audience that Peru sees investment as key to economic development.
"The Peruvian state wants to be a facilitator ... it wants to be facilitators for investors," he said.
http://www.reuters.com/article/2012...8TN20120224?feedType=RSS&feedName=marketsNewsNewmont Mining sees costs rising in 2012
Thu Feb 23, 2012 7:06pm EST
* Q4 EPS $1.17 vs est $1.27
* Expects higher labor, power prices
* Sees lower production at Indonesia mine
* Shares down 1 pct after market
Feb 23 (Reuters) - Newmont Mining said it expects a rise in costs for gold and copper in 2012, mainly due to higher labor and power prices and estimated lower production at a mine in Indonesia.
The world's second-biggest gold producer said attributable gold production in 2012 is expected to be about 5 million ounces to 5.2 million ounces, with attributable copper production of 150 million pounds to 170 million pounds.
Attributable gold and copper production were 5.2 million ounces and 206 million pounds respectively in 2011.
In 2012, costs applicable to sales for gold are expected to be between $625 and $675 per ounce, and copper between $1.80 and $2.20 per pound. They were $591 per ounce and $1.26 per pound respectively in 2011.
Denver-based Newmont said the outlook also reflects lower expected production at its Batu Hijau mine in Indonesia, where the company is currently engaged in "stripping" and plans to process lower grade stockpiles until late 2013.
A company spokesperson had told Reuters last month that the company was digging more rock containing lower-grade ore in order to gain access to part of the mine with higher grades during the process of stripping.
Newmont said it currently plans to spend about $3 billion to $3.3 billion in attributable capital expenditures in 2012.
The company's fourth-quarter net loss was $1.02 billion, or $2.08 per basic share, compared with a profit of $812 million, or $1.65 per basic share.
Adjusted net income was $1.17 per basic share. By that measure analysts were expecting $1.27, according to Thomson Reuters I/B/E/S.
Newmont shares were down 1 percent at $63.61 in extended trading. They closed at $63.80 on Thursday on the New York Stock Exchange.