JOHANNESBURG (miningweekly.com) – The Boddington mine, owned by US-based Newmont Mining, would add 20-million ounces to Australia’s gold output over the next 20 years, Western Australia Premier Colin Barnett said on Wednesday, at the official opening of the mine.

He added that A$3,5-billion recommissioned gold mine would surpass Newmont and Barrick Gold’s Kalgoorlie-Boulder Super Pit in terms of size and production, during the coming years.

The Super Pit is currently Australia’s largest openpit mine, which will operate until 2021.

Barnett said that the Boddington mine was expected to inject A$770-million into the economy every year for the next 20 years.

The reopened gold mine would produce about one-million ounces of gold a year in the first five years of operations, before averaging about 850 000 oz/y for its anticipated 20-year lifespan.

“This mine is the flagship project for Newmont, which is one of the world’s biggest gold producers, and has combined reserves of 20,1-million ounces.

“Western Australia is again on track to resuming its position as the international resource investment destination of choice,” said Western Australian Mines and Petroleum Minister Norman Moore.

Moore said recent technological advances and the strong gold price were the drivers behind the reopening of the gold mine, which operated between 1987 and 2001.

Mining operations ceased after the known near-surface oxide ore resource had been processed.  About 692 000 oz of gold was produced at this time.

Moore noted that a bedrock resource of almost 20-million ounces was identified and expansion of the facility to allow mining and processing of basement rock was approved in 2002, with construction on the expansion project beginning in May 2006.

In July, Newmont begun the start-up phase of the Boddington project, and at the time, Newmont president and CEO, Richard O’Brien said that for a project of its size and complexity, the mine represented a signature achievement not just for the company, but for the industry as a whole.

Boddington achieved commercial production in November, after it poured its first gold at the end of September.

Barnett noted that Boddington would employ a production work force of up to 900 employees and create opportunities for suppliers and contractors.

“Western Australia has always been about big projects, international trade and bold steps forward.

“As a result, Western Australia has secured its position as the world’s leading mining economy. It’s important that through this success we continue to improve conditions for the community and increase job opportunities,” Barnett added.

Australia is the world’s second-largest gold producer, after China, followed by the US and South Africa.

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