Summary
Newmont Mining Corporation (NEM) reported a significant operational event on September 18, 2009, concerning its indirect affiliate PT Newmont Nusa Tenggara (PTNNT). PTNNT experienced a geotechnical failure in the west wall of the Batu Hijau open-pit mine located in Indonesia. As a precautionary measure, operations within the Batu Hijau pit have been temporarily suspended. This suspension is in place pending a comprehensive geotechnical review and the development of a strategy to stabilize the mine wall and resume normal mining activities. While pit operations are halted, PTNNT is continuing to process existing stockpiles of lower-grade ore. The company acknowledges that it is currently too early to quantify the full impact on production and revenues and has committed to providing further updates as the situation becomes clearer.
Key Highlights
- 1Geotechnical failure occurred in the west wall of the Batu Hijau open-pit mine in Indonesia on September 18, 2009.
- 2Operations within the Batu Hijau pit have been temporarily suspended by PTNNT, an indirect affiliate of Newmont.
- 3Suspension is pending a geotechnical review and the development of a plan for wall stabilization and operational restart.
- 4PTNNT is continuing to process ore from stockpiles, albeit of lower grade.
- 5The immediate impact on Newmont's production and revenue is currently unknown.
- 6Newmont has committed to providing updates on the situation and its impact.
- 7This event poses a potential short-term disruption to a key mining operation.