Newmont boss flags record gold prices

Newmont president Richard O'Brien predicted gold prices could rise as high as US$1350 per ounce this year at the opening of Australia's largest gold mine yesterday.

Newmont president Richard O’Brien has no fears for the viability of the company’s new Boddington gold mine, yesterday predicting gold prices could rise as high as US$1350 per ounce this year.

Speaking at the opening of the operations, now Australia’s largest gold mine, O’Brien believed the prices could set new records this year.

“We see gold this year somewhere between US$1100 and US$1250, maybe US$1350,” he said.

“We will see continued support for the gold price.

“No country can print more of it, so no country can dilute the value of gold.” The gold price closed at US$1112.40 per ounce overnight.

The Boddington gold mine, located 130 km from Perth, is expected to produce one million ounces of gold in the first five years and more than 30,000 tonnes of copper a year.

The mine will overtake the Kalgoorlie Super Pit as the largest in the country.

According to the company, the mine has proven reserves of 20.1 million ounces, giving it a lifespan of at least 20 years.

“For a company that has been in business for 89 years, this is still a big deal,” O’Brien said.

Western Australian Premier Colin Barnett opened the mine in a ceremony attended by other State and Federal politicians, Newmont directors and local dignitaries.

“I congratulate Newmont on its ‘buy local, hire local’ policy and providing the local Ngaala Karla Booja people business, employment, education and training opportunities,” Barnett said.

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