Newmont's Indonesia unit may start cutting output by June 1

|About: Newmont Mining Corporation ... (NEM)|By:, SA News Editor

Newmont Mining's (NEM -1.9%) Indonesian unit says it may start cutting production at its Batu Hijau gold and copper mine by June 1 if it fails to get permits to export its concentrates.

Batu Hijau's copper concentrate storage facilities will reach full capacity in late May, requiring an orderly ramp down of operations, NEM says; once this occurs, the unit "will move to cease mining and milling, along with significantly scaling back contracted services."

Before the country's controversial new export rules, NEM forecast copper concentrate output for 2014 at 110K-125K metric tons.