Newmont Mining Corp Expands Gold Portfolio with .9 Billion Boddington Mine Acquisition

Strategic Insights -

The Boddington mine expansion in Western Australia is a significant addition to Newmont Mining Corp's gold portfolio, surpassing the country's largest gold mine, the Super Pit, in production. The 130km southeast of Perth, the mine is expected to produce one million ounces of gold and 30,000 tonnes of copper per year for the first five years of operation, with average annual output of 850,000 ounces of gold and 35,000 tonnes of copper over its 20-year plus mine life.

Key Takeaways:

  • The Boddington mine expansion is a .9 billion ($A3.25 billion) investment by Newmont Mining Corp, adding a significant asset to the company's gold portfolio.
  • The mine is expected to surpass the Super Pit, a joint operation between Newmont and Barrick Gold Corporation, as the country's largest gold mine.
  • The Boddington mine will produce one million ounces of gold and 30,000 tonnes of copper per year for the first five years of operation, with average annual output of 850,000 ounces of gold and 35,000 tonnes of copper over its 20-year plus mine life.
  • By comparison, the Super Pit produces up to 850,000 ounces of gold per year and is slated to keep producing until 2021.
  • The expanded Boddington mine will employ between 650 and 800 people at steady state production levels.
  • Newmont spent seven years incrementally lifting its stake in the mine, acquiring interests from Normandy Mining Ltd, Newcrest Mining, and AngloGold Ashanti Ltd, to achieve full ownership in June last year.
  • The mine's footprint is a whopping 4km long, 1km wide, and will ultimately be 700m deep, with a conveyor stretching 2.2km and a facility that took 20,000 tonnes of steel to build.

Statistics:

  • The Boddington mine expansion is a .9 billion ($A3.25 billion) investment by Newmont Mining Corp.
  • The mine is expected to produce one million ounces of gold and 30,000 tonnes of copper per year for the first five years of operation.
  • Average annual output during its 20-year plus mine life will be 850,000 ounces of gold and 35,000 tonnes of copper.
  • The Super Pit produces up to 850,000 ounces of gold per year.
  • The expanded Boddington mine will employ between 650 and 800 people.
  • Newmont spent seven years acquiring interests in the mine.

Sources:

  • "Newmont's .9bn Boddington mine expansion set to surpass Kalgoorlie's Super Pit", Asia Pulse, Feb 2.
  • (AAP) lm 02-02 2021