Continuing progress in mobile devices and electric cars has made the global demand for lithium...
Newmont expect to increase Tanami’s annual gold production
Newmont Mining Corporation (NYSE: NEM) reached commercial production at the Tanami Expansion Project, which will increase profitable gold production and support ongoing exploration and development of Tanami’s prospective underground resource. The expansion included building a second decline in the underground mine and incremental capacity in the processing plant.
The project achieved commercial production safely and on schedule for the approved $120 million development capital investment.
The expansion is expected to increase Tanami’s annual gold production by 80,000 ounces per year to between 425,000 and 475,000 ounces of gold per year, lower all-in sustaining costs1 to between $700 and $750 per ounce, and extend mine life by three years. This expansion also creates a platform for further growth and studies to develop a second expansion are underway.
“Tanami’s team has more than doubled gold production while cutting costs by about two-thirds and significantly improving resource confidence since 2012. The expansion project continues this trajectory, offering robust returns of 35 percent at a $1,200 gold price,” said Gary Goldberg, President and Chief Executive Officer. “The team also delivered this project safely and on schedule despite a one-month delay caused by record rainfall in the first quarter.”
The second decline was, according to company, completed in mid-2016, enabling a step change in mining rates – which ramp up to 2.6 million tonnes per year – and opening new avenues for exploration drilling. Since that time, Tanami’s team has improved mine ventilation to support further growth, and increased mine development rates through drilling efficiency gains.