Tanami also pours 10 millionth ounce since operations began in 1986
Newmont
Mining Corporation (NYSE: NEM) (Newmont or the Company) today
announced that the Tanami Power Project in Australia was completed
safely and on schedule. The project included the installation of two
power stations, a 66kV interconnected power line, and a 275 mile (450km)
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. Capital costs are
estimated at approximately $245 million with annual cash lease payments
over a 10-year term beginning in 2019.
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Newmont's Tanami (Granites) natural gas power station in Northern Territory, Australia. (Photo: Business Wire)
The successfully completed project is expected to provide the Tanami
gold mine a safe and reliable energy source while lowering power costs
and carbon emission by 20 percent. The project is expected to generate
net cash savings of $34 per ounce from 2019 to 2023, delivering an
Internal Rate of Return of greater than 50 percent.
“In addition to lowering costs and carbon emissions, the completed
Tanami Power Project will pave the way to further extend the life of the
operation,” said Gary Goldberg, Chief Executive Officer. “Consistent
execution and delivery remain the hallmark of our ability to generate
free cash flow and create long-term value for our shareholders and other
stakeholders. Completion of the project coincides with Tanami pouring
its 10 millionth ounce of gold on the back of record production of
500,000 ounces last year. This achievement is a testament to the skill
of our team as well as our valued partnership with the Warlpiri people,
the Traditional Owners of the land.”
Tanami is Australia’s second largest underground gold mine and one of
the most cost competitive gold producers in the world. Newmont’s
continued 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
ounces of gold Resources were converted into Reserves from Tanami’s
Auron ore body.
Over the last six years, Newmont has successfully built 11 new mines,
expansions and projects on four continents – on or ahead of schedule and
at or below budget. These projects include Akyem and the Phoenix Copper
Leach in 2013, the Turf Vent Shaft in 2015, Merian and Long Canyon in
2016, the Tanami Expansion in 2017, and Twin Underground, Northwest
Exodus and Subika Underground in 2018. The Company also completed a
value-accretive acquisition of Cripple Creek and Victor in 2015 and
delivered a profitable expansion at the mine in 2016.
About Newmont
Newmont is a leading gold and copper producer. The Company’s operations
are primarily in the United States, Australia, Ghana, Peru and Suriname.
Newmont is the only gold producer listed in the S&P 500 Index and was
named the mining industry leader by the Dow Jones Sustainability World
Index in 2015, 2016, 2017 and 2018. The Company is an industry leader in
value creation, supported by its leading technical, environmental,
social and safety performance. Newmont was founded in 1921 and has been
publicly traded since 1925.
Cautionary Statement Regarding Forward-Looking Statements:
This release contains “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, which are intended
to be covered by the safe harbor created by such sections and other
applicable laws. Such forward-looking statements may include, without
limitation: (i) estimates of future capital costs, cash lease payments,
cost savings, carbon emission reductions, net cash savings and internal
rate of return; (ii) expectations regarding free cash flow generation
and long-term value creation for Newmont shareholder and stakeholders;
(iii) expectations regarding future expansions; (iv) expectations
regarding mine life extensions; and (v) other expectations regarding
future operating and financial results. Where the Company expresses or
implies an expectation or belief as to future events or results, such
expectation or belief is expressed in good faith and believed to have a
reasonable basis. However, estimates or expectations of future events or
results are based upon certain assumptions, which may prove to be
incorrect. Such assumptions include, but are not limited to: (i) there
being no significant change to current technical, geotechnical,
metallurgical, hydrological and other physical conditions; (ii)
permitting, development, operations and expansion of the Company’s
operations and projects being consistent with current expectations and
mine plans; (iii) certain price assumptions for gold, copper, oil and
gas; (iv) prices for key supplies being approximately consistent with
current expectations; (v) exchange rates being consistent with current
assumptions; (vi) certain governmental regulations and requirements
being consistent with current expectations; and (vii) other assumptions.
Such assumptions and related forward-looking statements are subject to
risks, uncertainties and other factors, which could cause actual results
to differ materially. Other risks relating to forward-looking statements
in regard to the Company’s business and future performance may include,
but are not limited to, gold and other metals price volatility, currency
fluctuations, increased production costs, variation in power
requirements and costs, and variances in ore grade or recovery rates
from those assumed in mining plans, operational risks, community
relations risks, governmental regulation and political and judicial
outcomes. For a more detailed discussion of such risks and other
factors, see the Company’s 2018 Annual Report on Form 10-K filed with
the Securities and Exchange Commission (SEC) on February 21, 2019, and
available at www.newmont.com,
as well as the Company’s other SEC filings. The Company does not
undertake any obligation to publicly release revisions to any
“forward-looking statement” to reflect events or circumstances after the
date of this news release, or to reflect the occurrence of unanticipated
events, except as may be required under applicable securities laws.
Investors should not assume that any lack of update to a previously
issued “forward-looking statement” constitutes a reaffirmation of that
statement. Continued reliance on “forward-looking statements” is at
investors' own risk.
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