UPDATE 1-Newmont Indonesia needs $3 bln to develop Elang copper

* Says Elang mine has copper reserves for output to 2060

* Plans to develop four mines on Sumbawa island
(Adds quote, details)

JAKARTA, May 26 (BestGrowthStock) – Newmont’s (NEM.N: ) Indonesia
unit needs $3 billion to develop the Elang copper reserve,
which has estimated sufficient reserves for production until
2060, the firm’s president director said on Wednesday.

PT Newmont Nusa Tenggara plans to develop four mines
including Elang after 2017 in Sumbawa island in eastern
Indonesia, where it already operates the Batu Hijau copper and
gold mine, Martiono Hadianto told a parliament hearing.

“Elang mine has more reserves than Batu Hijau. If we want
to develop it, we need $3 billion for investment,” Hadianto
said.

“For investment it’s normally mixed finance of loan and
equity,” he added.

Southeast Asia’s largest economy has struggled to lure
foreign investment into mining in recent years, compounded by
some politicians taking a nationalist line on resource
exploitation and also because of uncertainty over regulations
tied to a new mining law passed in 2008.

Indonesia’s copper output is expected to increase to
1,016,949 tonnes in 2010 from 868,171 tonnes in 2009, while
gold production this year is forecast to reach 115,998 kg from
105,404 kg last year.

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(Reporting by Telly Nathalia, Writing by Fitri Wulandari;
Editing by Neil Chatterjee)

UPDATE 1-Newmont Indonesia needs $3 bln to develop Elang copper