Newmont building mine in Indonesia

Construction is under way at the Minahasa gold project on the northern Indonesian island of Sulawesi.

Newmont Gold (NYSE), which owns 80% of the venture, expects to begin production in early 1996 at a yearly rate of 140,000 oz. and a cash cost of US$150 per oz. (The remaining 20% is owned by P.T. Tanjung Serapung of Jakarta.)

Plans call for the open-pit mining of three deposits, the largest of which, Mesel, contains 8.5 million tons grading 0.21 oz. per ton. The other two deposits contain a combined 1.1 million tons grading 0.16 oz. The overall stripping ratio is estimated at 3.7-to-1.

Reserves are largely refractory, with the gold tied up in pyrite; as a result, milling will include dry grinding and roasting followed by conventional cyanidation.

The capital cost of the mine, including construction of a deep-water port and electrical power facility, is estimated at US$131 million.

Much of the 433-man workforce will be recruited and trained locally.