Newmont 2010 Exploration Spend Likely Similar To 2008 - CEO
October 02 2009 - 1:20AM
Dow Jones News
Newmont Mining Corp. (NEM) Chief Executive Richard O'Brien said
Friday the company's exploration spending in 2010 is likely to be
in line with its spend in 2008.
The miner expects to spend US$160 million on exploration in 2009
and O'Brien said this is set to rise in 2010 as the company's
cashflow improves.
"With where we see the gold price, I think we can afford to
spend some more next year," he told reporters after addressing the
Melbourne Mining Club.
"In 2008, we spent closer to US$200 million on exploration so I
could imagine going back to that sort of level."
He said the emissions trading scheme being mooted in Australia
will have an impact on profit margins at Newmont's mines but in the
long run other countries would follow Australia's lead, so this
would become a cost across the world.
However, in the short term, Newmont would take the prospect of
higher costs from a carbon tax into account when assessing marginal
Australian projects in the US$50 million-US$100 million range.
"There might be some projects in Australia that we will defer
because we have other projects that rise to a higher level," he
said.
O'Brien said the miner has no plans for further investment in
Australia in the short term but is hopeful of growing its business
here in the longer term.
Newmont is still assessing the impact of a partial pitwall
failure at its Batu Hijau mine in Indonesia, and O'Brien said the
incident was likely to cause some delay to previously stated plans
to boost output at the mine by 60% to 455 million pounds of copper
concentrate in 2009.
-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094;
alex.wilson@dowjones.com