(REUTERS) -- Newmont Mining Corp said on Wednesday it will cut capital spending on a controversial gold mine project in Peru by two-thirds for the 2012-13 period because of delays caused by government and environmental reviews.

Chief Executive Officer Richard O'Brien told investors in a New York presentation that the company will now spend $440 million on the Conga project over the next 18 months, down significantly from the $1.5 billion it had previously budgeted.

Newmont, the world's second-largest gold producer, is still evaluating the mine plan, after reviews by the Peruvian government and an independent panel of experts, which have recommended certain changes.

The company is expected to make a final decision by the end of June on whether to go ahead with the project, which has sparked protests over the issue of water supplies for local farmers and communities.