- Expansion is expected to add production of about 80,000 ounces
- Commercial production set to start in the second half of 2017
Newmont Mining Corp., the largest U.S. gold producer, plans to expand its Tanami operations in Australia at a cost of as much of $120 million.
The expansion is expected to add production of about 80,000 ounces a year and decrease Tanami’s all-in sustaining costs by 5 percent to 10 percent in the first five years, Greenwood Village, Colorado-based Newmont said Wednesday in a statement.
The expanded operation will produce 425,000 ounces to 475,000 ounces a year at a cost of $700 to $750 an ounce, with commercial production is set to start in the second half of 2017, it said.
Newmont, the world’s second-largest gold producer, is working to lower costs as bullion trades about 40 percent below its 2011 peak. The company plans to increase its global production by more than 10 percent and in June agreed to buy the Cripple Creek & Victor mine in Colorado for $820 million.