The $245-milion power station project for Newmont Mining’s Tanami gold mine, in Australia, has been completed, the US-based gold and copper major reported on Friday.
The project entailed the installation of two power stations, a 66 kV interconnected power line, and a 450 km natural gas pipeline. The pipeline was built and will be maintained by Australian Gas Infrastructure Group, while the power stations were constructed and will be operated by Zenith Energy.
The successfully completed project will not only provide the Tanami mine with a reliable energy source, but will also lower power costs and carbon emission by 20%.
Newmont expects to realise net cash savings of $34/oz from 2019 to 2023, delivering an internal rate of return of more than 50%.
Completion of the project coincides with Tanami pouring its 10-millionth ounce of gold on the back of record production of 500 000 oz last year.
Tanami is Australia’s second-largest underground gold mine and one of the most cost competitive gold producers in the world.
Newmont’s exploration success at Tanami has created the potential to extend mine life beyond 2028, with additional upside through a possible second expansion project that the company expects to make a full funding decision on in the second half of 2019.
Last year, more than 800 000 oz of gold resources were converted into reserves from Tanami’s Auron ore body.