Company Profile FACT SHEET
BACKGROUND On 2 December 1986, PT Newmont Nusa Tenggara (PTNNT) signed a Contract of Work (CoW) with the Government of Indonesia to carry out exploration and mining activities within a designated area in West Nusa Tenggara (NTB) Province.
In 1990, PTNNT discovered a copper porphyry deposit that was later named Batu Hijau (green rocks) based on the green color of the rocks found at the site. Batu Hijau is situated in the southwest region of the island of Sumbawa in the sub-district of Sekongkang, Regency of West Sumbawa, West Nusa Tenggara Province, Indonesia, some 550 meters above sea level. It is 81 kilometers (50 miles) from the main town of Mataram and is accessible by plane and ferry from the neighboring island of Lombok. Following discovery of the Batu Hijau copper porphyry in 1990, PTNNT carried out technical assessments and environmental and social impact analyses over the next six years. The environmental and social impact assessments were approved by the Government of Indonesia in 1996 and construction of the mine began in 1997, with a total investment of US$2 billion. In March 2000 full operations began and the mine is expected to continue production for at least over 20 years.
*) all data is as December 2013 unless stated otherwise
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OWNERSHIP Current Ownership: 1.
Nusa Tenggara Partnership B.V.
: 56%
2.
PT Multi Daerah Bersaing
: 24%
3.
PT Pukuafu Indah
: 17.8%
4.
PT Indonesia Masbaga Investama : 2.2%
PTNNT's Economic Contribution PTNNT has contributed more than US$8.4 billion to the local and national economy since 2000, which includes payments for taxes, non-taxes, royalties, salaries, incountry purchases and dividends paid to its Indonesian stakeholders. Employment
4,311 employees (66.8% from local area; 33.2% from other parts of Indonesia) and 13,614 dependents. 5,071 contractors (65% from local area; 35% from other parts of Indonesia). Contracts with 367 local suppliers. US$3.8 billion spent on domestic purchases and services since 2000. 2,147 people have gone through PTNNT's job/ skills programs.
Taxes, Non-Taxes, and Royalty
US$161.4 million in taxes & non-taxes paid to national, regional and local governments, include royalty in 2012. US$3.1 billion in taxes & non-taxes paid to national, regional and local governments, include royalty since 2000 - Q2 2013. US$908.5 million paid in national salaries (net) since 2000 - Q2 2013.
*) all data is as December 2013 unless stated otherwise
Company Profile - FACT SHEET
Social Investments
Average US$5 million per year for community investment projects and programs. US$47 million provided to local governments to help accelerate infrastructure development in 2010. 249 infrastructure projects have been completed in the three sub-districts around the mine in public healthcare, education facilities and economic development. The number of malaria cases decreased from 26.04% in 1999 to 1.47% in 2012. 9,654 scholarships granted to students from all over the province.
OPERATION Mining
Batu Hijau's copper porphyry deposit is low grade requiring substantial milling and processing to produce copper concentrate, a sand-like material that then requires advanced refining to recover the copper, gold and other metals. Mining begins with drilling and blasting, followed by large shovels loading the rocks onto 240-tonne haul trucks. The ore is brought to the crushers where the rocks are further reduced to a diameter of less than 15 cm. The ore is then transported to the mineral processing plant, while the low grade ores are transported to the stock piling area for future processing.
*) all data is as December 2013 unless stated otherwise
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Processing
From the crushers, the ore is transported by a 6-km conveyor belt to the processing plant called a concentrator. Here, the minerals are separated from the rocks through milling and flotation processes. The rock ore, after mixed with sea water, is then milled using two Semi Autogenous (SAG) mills and four ball mills. From the ball mills, fine particles contained in the slurry are then pumped to a set of cyclone tanks for final ore particle separation. The fine ore slurry from the cyclone tank is channeled to a number of floatation cell tanks for mineral recovery. The flotation process physically separates the minerals through a process that involves agitating the mineral-baring fluid and stratifying the minerals to the top. Two kinds of reagents are added to the flotation process in the tanks. The first will bind minerals, while the second functions to stabilize bubbles formed by the agitating process. When the bubbles rise, minerals or concentrate will also rise to the surface along with the bubbles. The bubbles' surface is coated by the minerals in the form of a fine sand. The floating layer on the flotation cell surface is called concentrate. From the flotation cells, the concentrate is transferred to salt eliminating tanks called CCD (counter-current decantation). In the tanks, the seawater is removed and the concentrate is thickened by channeling fresh water in the opposite direction. The fresh water replaces the seawater and the concentrate settles on the bottom of the tank. The concentrate then goes through a 17.6 km pipeline to the filtration plant at Benete. The liquid concentrate is collected in a huge tank and is agitated continuously to avoid sedimentation. The concentrate is then filtered to remove water from the concentrate up to 91%, using pressurized air. Following the filtration process, the concentrate will appear in the form of a fine, sand-like powder and is stored for shipping. The loading of the processed concentrate into the ship uses a conveyor belt in the presence of government officials.
*) all data is as December 2013 unless stated otherwise
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Refining
PTNNT‟s concentrate has average 22% purity rate of copper which is not in contravention with the provisions of the Mining Law No.4/2009 regarding in country processing and refining. At 22% purity PTNNT has received up to 90-95% of the metal value according to the International market price. PTNNT's concentrate is shipped to a number of smelters, including PT Smelting in Gresik, East Jawa - Indonesia's only copper smelter. Annually, PTNNT ships as much of its concentrate (20-23% of its concentrate production) the Gresik smelter can process, with the remainder sent to smelters overseas.
Environmental Awards Ministry of EMR ADITAMA: „Overburden Management - 2004‟ UTAMA: „Reclamation Activities - 2004-2006‟ ADITAMA: „Erosion and Sedimentation Control - 2005-2006‟ ADITAMA: “Mining Environmental Management” 2009 ADITAMA Trophy: “Mining Environmental Management” 2006-2008, and 2010-2012. ADITAMA Trophy: “Mining Environmental Management” 2013
PROPER– Ministry of the Environment 2002/2003
Green Rating
2003/2004
Blue Rating
*) all data is as December 2013 unless stated otherwise
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2004/2005
Green Rating
2006/2007
Green Rating
2008/2009
Green Rating
2009/2010
Green Rating
2010/2011
Green Rating
2011/2012
Blue Rating
2012/2013
Blue Rating
Tambang Award – Mining Magazine 2010 The Best Mining Company in Environmental Compliance 2012 The Best Mining Company in Environmental Compliance
*) all data is as December 2013 unless stated otherwise