The Australian Gas Infrastructure Group (AGIG) has been given the green light from the Northern Territory Government to operate the 440-kilometre gas pipeline serving Newmont Mining’s Tanami gold mine.
Northern Territory Primary Industry and Resources Minister Paul Kirby announced that AGIG (as AGI Tanami) could now test the fully constructed pipeline under operational conditions.
Once this testing is successfully carried out the project will then be allowed to enter full operation.
AGIG won the $170 million contract with Newmont to build, own and operate the pipeline infrastructure in June last year.
“The Territory Labor Government supports the delivery of job-creating infrastructure, so I am pleased to approve the next stage of works for the Tanami gas pipeline,” Kirby said.
“Newmont’s Territory mining operations are some of the most successful gold operations in Australia. This pipeline will provide year-round, cleaner power — supporting existing jobs and creating the potential for more jobs.”
The pipeline is expected to provide improved operational efficiency at Newmont’s Tanami operations. The mine site has historically relied on diesel deliveries, a system more prone to production delays caused by road problems.
Newmont’s completed an expansion of Tanami in 2017 that increased capacity by 80,000 ounces a year.
The company is currently advancing studies for a second expansion (2019 guidance stands at 495,000 ounces).
Newmont — which is set to become the world’s largest gold company —recently awarded a four-year engineering, procurement and construction management (EPCM) contract to WorleyParsons to develop the site’s underground infrastructure in this capacity.