Newmont Goldcorp expects its Australian operations to contribute 1.5 million ounces to the company’s overall gold production next year.
The company’s output in Australia is forecast to rise to 1.7 million ounces in 2021 and then 1.8 million ounces the following year as the company optimises the Tanami, Boddington and Super Pit operations.
Newmont’s development pipeline in Australia includes the Tanami expansion two project in the Northern Territory, where it plans to invest between $US700 million ($1.03 billion) and $US800 million in capital costs with a view to extend the mine life to 2040.
The company is constructing infrastructure to increase Tanami’s average annual production by around 150,000 to 200,000 ounces a year for the first five years starting 2023.
Newmont will also reduce operating costs at Tanami by around 10 per cent and produce 3.5 million tonnes a year of ore through the expansion.
The company also has growth plans at the Kalgoorlie Super Pit joint venture in Western Australia, and internationally at the Subika underground mine in Ghana and Musselwhite operation in Canada.
Newmont is targeting a production of 6.7 million ounces of gold in 2020 globally, before bringing this up to seven million ounces through to 2024.
The gold miner forecasts 285,000 ounces at an all-in sustaining cost (AISC) of $US1035 an ounce at the Kalgoorlie Super Pit in 2020 from its 50 per cent share in the joint venture.
Newmont Goldcorp is set to achieve a higher grade and throughput next year from mining Golden Pike in the Super Pit’s Fimiston open pit.
JV partner Saracen Mineral Holdings now joins Newmont as part of the sub-committee that reports to the Kalgoorlie Consolidated Gold Mines (KCGM) executive committee.
Saracen managing director Raleigh Finlayson said the management initiatives highlighted a strong start to the company’s relationship with Newmont at the Super Pit.
“We now look forward to working with Newmont to maximise the value of the Super Pit for all our stakeholders including our respective shareholders and the local community,” Finlayson said.
Newmont also plans to unlock the full potential of its Boddington mine, which is expected to reach higher grades in 2021–2022.
Its stripping campaign is nearing completion in the South Pit at Boddington and will improve the site’s mining rates and grades throughout 2020.
“As Newmont enters our centenary year in 2020, our people, mines, projects and balance sheet are all very well positioned to deliver stable and sustainable industry leading performance,” Newmont president and chief executive Tom Palmer said.
“Our five-year outlook reflects steady gold production of 6.5 to seven million attributable gold ounces as well as an additional 1.2 to 1.4 million gold equivalent ounces of copper, silver, lead and zinc.”
Newmont is also set to reduce costs in the next five years through these planned improvements and the ongoing investment.
The company’s outlook also highlights its steadily improving cost profile, which includes more than half a billion dollars a year in sustainable operating, cost and supply chain improvements by 2021, according to Palmer.
Newmont expects its all-in sustaining costs (AISC) to be $US975 an ounce in 2020, before going down to $US850–$US950 an ounce in 2021 and 2022. This is set to improve to $US800–$US900 an ounce longer term through 2024.