Gold miner Newmont is anticipating that it will move forward on a $2-billion investment on the so-called Yanacocha sulfides project in Peru, CEO Tom Palmer said on Tuesday.
The remarks are the strongest support yet for a project that Newmont says will only be fully decided later this year. Peru is the world's No. 2 copper producer and a major producer of gold.
US-based Newmont, the world's largest gold miner, has committed $500-million to invest in the project so far, but is in the process of making a final decision on the remaining investment.
The project is part of a planned expansion of Newmont's Yanacocha gold mine, which will extend the life of Yanacocha beyond 2040.
Newmont previously co-owned the Yanacocha project with local miner Buenaventura, but earlier this year bought out its partner's stake.
If Newmont moves forward, it would represent a confidence boost for Peru and the administration of President Pedro Castillo, who has faced significant turmoil within the mining industry.
Two of Peru's largest copper mines have suspended production so far this year amid escalating conflicts with nearby indigenous communities.
MMG's Las Bambas copper mine remains halted and on Tuesday government mediators failed to broker a deal that would allow the mine to restart. Read full story
Addressing a mining conference in Lima organized by local mining chamber SNMPE, Palmer said Newmont is also looking into expanding into copper production, noting that the Yanacocha Sulfides project has significant quantities of the red metal.
The company may one day take a second look at its Conga gold project in Peru, he added, which was canceled earlier this century due to significant opposition from nearby communities.
"There is the opportunity to one day return to Conga," Palmer said, noting it would require support from stakeholders.