Extra life keeps Newmont in Pit
Newmont Mining has provided the strongest indication yet that it sees a long-term future at Kalgoorlie-Boulder’s Super Pit after unveiling a new mill to revolutionise the way gold is processed on the Golden Mile.
In the wake of the US giant’s Jundee and Waihi asset sales, Newmont senior vice-president of Asia-Pacific operations Tom Palmer was yesterday bullish about future exploration potential in a region which has produced more than 56 million ounces.
Mining plans for the Super Pit expire in 2019 but there was talk yesterday of further cutbacks and potential underground expansions.
Mr Palmer said Newmont, which holds 50 per cent of the pit alongside Barrick Gold, was committed to its Asia-Pacific portfolio which also includes Australia’s biggest-producing gold mine at Boddington, the Tanami project in the Northern Territory and Batu Hijau in Indonesia.
“We still have a pretty significant presence in this part of the world and we plan to stay in this part of the world,” Mr Palmer said. “Those operations are all pretty large with big lives.
“The amount of gold coming out of the region makes up about half of our global production, so it’s a pretty important part of the business.
“There are some things going well for us. The Australian dollar exchange rate and oil price, but it’s not something you can take for granted.”
Mr Palmer described as “so far, so good” the decision by Newmont to take the “leading role” in the day-to-day running of Kalgoorlie Consolidated Gold Mines as Barrick steps further away from Australia.
He said Newmont was considering strategic decisions with Barrick.
“Our immediate focus is on understanding the resource around the open pit and completing those cutbacks and getting the business cases developed to do that,” he said.
“Exploration dollars are obviously tight and we would be looking to spend that wisely.”
Yesterday’s official opening of the ultra-fine grinding mill is part of plans to process low-grade ore until at least 2029.
KCGM acting general manager Ian Butler said the mill was delivered ahead of schedule and “slightly” ahead of budget.
“Rest assured, we haven’t stopped looking and hopefully someone else is standing here in 2029 talking about the next 20 or 30 years,” he said.
The mill will remove 95 per cent of sulphur dioxide and mercury emissions from the Gidji roaster.
