Newmont’s Nevada roaster choked out

The failure of an oxygen plant has forced Newmont Mining (NEM-N) to temporarily shut down its roaster facility in Nevada.

Newmont says the plant, which supplies oxygen for the roasting process, is owned and maintained by a third party. The shut down is expected to last about three weeks, which Newmont figures will mean the deferral of up to 30,000 oz. of gold sales from the first and second quarters to the second half of 2004. The shut down will also push cash costs in Nevada higher during the first quarter.

Newmont will complete regular roaster maintenance (originally planned for the second quarter) during the shutdown.

Despite the setback, Newmont maintains its production estimate of 7 million to 7.2 million oz. at a total cash cost of US$220-US$230 per oz. during 2004. First quarter gold sales are expected to come in around 1.79 million to 1.83 million oz.