Gold mining major Newmont has delayed the full-funds investment decision for its Yanacocha Sulphides project, in Peru, to the second half of 2024, citing “unprecedented market conditions”.

The company explains that the war in Ukraine, record inflation rates, the rising prices for commodities and raw materials, prolonged supply chain disruptions and competitive labour markets contributed to its decision to delay the expansion project.

Newmont has appointed Dean Gehring as chief development officer for Peru, to lead the Yanacocha operations and the Sulphides project.

A 30-year mining industry veteran, Gehring brings extensive global leadership experience to the role, having previously managed operations and projects in the US, Canada, Indonesia, Suriname and Peru, including as the head of Newmont’s South America region.

Most recently, he served as Newmont’s executive VP and chief technology officer, integrating teams and systems across the global enterprise during a pivotal period following the acquisition of Goldcorp and throughout the Covid-19 pandemic.

“Newmont has a long history of operating in Peru, and Yanacocha is an important part of Newmont’s world-class portfolio and long-term strategy. Dean brings a breadth of experience in successfully operating in this important region, and a proven capability in building and leading teams to successfully deliver results in complex operating environments,” said president and CEO Tom Palmer.

“Dean is uniquely qualified to ensure operational excellence while working closely with government stakeholders, business partners and local communities to manage the development of this project in the current global economic context.”

Newmont will continue to manage the Yanacocha operations responsibly while also finding opportunities to enhance operations, including the construction of two water treatment plants, with an anticipated initial spend of around $350-million over the next two years.

Ahead of the full-funds investment decision for the Sulphides project, Newmont will continue advanced engineering and long-lead procurement activities to derisk the project seeking a profitable and predictable path forward.

Following the investment decision anticipated in the second half of 2024, the project is expected to be developed over a three-year period, adding average production of about 525 000 gold-equivalent ounces a year for the first five years of operation.