Modern Mining September 2019

MINING News

Newmont Goldcorp Corporation, listed on the NYSE and TSX, has announced that the Ahafo Mill Expansion (AME) project in Ghana has successfully processed its first ore and is on track to achieve commercial production in the fourth quarter of 2019. The mill expansion will increase average annual gold production at the Ahafo mine by between 75 000 and 100 000 ounces for the first five years, beginning in 2020, with mill capacity expanding by more than 50 % through the addition of a crusher, grinding mill and leach tanks. The project is expected to deliver an internal rate of return of more than 20 % and, together with other projects at Ahafo, will extend profit- able production through to at least 2029. “Combined with Subika Underground, Mill expansion at Ahafo gold mine processes its first ore which was successfully completed in November 2018, the mill expansion will increase Ahafo’s production to between 550 000 and 650 000 ounces per year through 2024, while lowering life-of- mine processing costs,” said Tom Palmer, Newmont’s President. “The project also accelerates the efficient processing of stockpiled ore and supports profitable development of Ahafo’s highly prospective underground resources, which continue to demonstrate considerable upside.” In 2019, Ahafo is expected to achieve record production – with improved costs – driven by higher grades from the Subika open pit, a full year of mining from Subika Underground and the completion of the AME. Capital costs for the AME are estimated

at between US$140 million and US$180 mil- lion and have been funded through free cash flow and available cash balances. Commercial production began at Ahafo in 2006, and in 2018 the operation sold 436 000 ounces of gold at all-in sustaining costs of US$864 per ounce. 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 bud- get. 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; Twin Underground, Northwest Exodus and Subika Underground in 2018; and the Tanami power project in 2019. 

The mill expansion will increase average annual gold production at the Ahafo mine by between 75 000 and 100 000 ounces for the first five years (photo: Newmont).

investment into our region, and are com- mitted to working with all parties. The agreement creates a broad-based struc- ture that creates new opportunities for Host Communities to participate in a busi- ness that has long been in our community. Working together, with integrity and respect, this agreement – and project – will be a success.” Added Werner Duvenhage, RBM’s Managing Director: “This is an important milestone for Richards Bay Minerals and underscores our commitment to create truly sustainable development through working with our partners, including the govern- ment, suppliers and Host Communities. This agreement is pioneering and transformative, ensuring that our communities can directly participate in this major project.” 

RBM and Host Communities sign Zulti South agreement Richards Bay Minerals (RBM), South Africa’s largest mineral sands producer, and the Dube, Mkhwanazi, Mbonambi and Sokhulu communities signed a landmark agree- ment in August this year securing local business participation in the Zulti South project. Approved in April, 2019, the project will bring an investment of US$463 million, approximately R6 billion, into the region and will extend the life of RBM. Production from Zulti South will be processed through RBM’s existing infrastructure.

basis for a broad-based structure with the Host Communities and their partners in the King Cetshwayo District, which will benefit the communities by creating opportunities for participation that would otherwise not have been accessible. The Consortium established through the agreement will act as a mechanism to accelerate and deliver transformation and empowerment to businesses in the district. Other communities will continue to have the opportunity to participate in contracts other than those ringfenced, with the Provincial government overseeing implementation. Speaking at the signing on behalf of the Host Communities, Mbonambi Administrator Martin Mbuyazi said: “We welcome this

The agreement is the result of discussions undertaken through a Multi-Stakeholder Forum process to address Host Community concerns around procurement. The agree- ment outlines the principles that form the

14  MODERN MINING  September 2019