Newmont Corporation has detailed its long-term outlook for its gold operations globally, including a production increase at the Boddington mine in Western Australia starting 2021.
The company’s production guidance is 6.5 million ounces of gold in 2021 and will continue to be a stable 6.2 to 7 million ounces to 2025.
Newmont flagged the “steady base” of production at Boddington, which will finalise full potential improvements to reach 40 million tonnes per annum, as part of its steady 2021 to 2025 production guidance.
Between 2022-2023, Boddington will benefit from higher grades and improved efficiency through autonomous haulage, Newmont said.
The Tanami mine in the Northern Territory will reach 500,000 ounces of production in 2021 and advance the Tanami expansion 2 project.
Newmont expects the Tanami Expansion 2 project ramp up will offset lower production at Boddington in 2023 as the latter transitions to stripping the next layback.
Production guidance for 2024 and 2025 is estimated to be between 6.5 million to 7 million ounces, which will be bolstered by its Ahafo North mine in Africa and Yanacocha Sulfides project in Peru, along with reaching a higher grade in North America.
Both projects are expected to reach the execution stage in 2021.
Newmont president and chief executive officer Tom Palmer said the outlook remains steady in the next five years.
“Newmont’s outlook remains strong and stable as we apply the rigor and discipline of our proven operating model across our world-class portfolio,” he said.
“Our five-year outlook reflects improving production and costs as we continue to deliver value from superior operational and project execution.”
The outlook is based on operations without further COVID-related interruptions.
However, Newmont said that if the pandemic poses significant risk to its operations, it will reduce its operational activities.