Ovacik news
Ovacik Operations Halted Pending Further Permitting
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DENVER, Aug. 20 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (NYSE: NEM) today announced that its Ovacik mine, located in western Turkey, was shut down yesterday by the Izmir provincial Governor as a result of a recent court decision ordering the mine closed pending completion of certain additional permitting requirements and the submission of an updated environmental impact assessment to the Turkish Ministry of Environment and Forestry. The Company believes that the halt in operations will be temporary and expects that the associated operating permits will be reinstated, although the timing of the expected reinstatement is not yet known. The operation is complying with the court's order and is working with the appropriate Turkish government agencies to obtain permission to reopen the mine as soon as possible.
The Ovacik mine reported proven and probable gold reserves of 170,000 ounces for the year 2003 and produced 75,000 equity ounces during the first half of 2004 at total cash costs of $202 per ounce. In June 2004, the Company entered into an exclusive agreement with Frontier Pacific Mining Corporation to negotiate the sale of Ovacik to Frontier. The proposed sale of Ovacik to Frontier has been deferred pending resolution of these issues.