Bloomberg News

Newmont ‘Can Improve’ Stalled $4.8 Billion Peru Project

January 12, 2012

(Updates with comment from executive in third paragraph, share price in fifth.)

Jan. 12 (Bloomberg) -- Newmont Mining Corp. plans to increase its $37.7 million investment in social programs and review consultants’ recommendations on environmental studies in a bid to open its stalled $4.8 billion Peruvian gold project, Vice President Carlos Santa Cruz said.

Newmont, which has invested $800 million in its Minas Conga deposit to date, has lost $2 million a day on delays since environmental protests forced the company to suspend the project in November, Santa Cruz said. Conga seeks to produce up to 680,000 ounces of gold and 235 million pounds of copper annually by the start of 2015, he said.

“We can improve the project and work with a broader population to make the benefits felt,” Santa Cruz told reporters in Lima today. “The project is a great opportunity and mining investment is fundamental.”

Newmont, based in Greenwood Village, Colorado, is waiting for the government to hire international consultants to review the project’s environmental impact study.

The company will invest $37.7 million in roads, schools and social programs in the Cajamarca region, according to a fact sheet it provided.

Newmont rose 1.3 percent to $64.17 at 12:11 p.m. in New York. The stock has gained 11 percent over the past 12 months.

--Editors: Jessica Resnick-Ault, Charles Siler

To contact the reporter on this story: Alex Emery in Lima at aemery1@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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