The US$245 million power station project for Newmont Mining Corp.'s Tanami gold mine in Australia's Northern Territory is complete, the leading gold and copper producer said March 15.
The project involved installing two power stations: a 66-kV interconnected power line and a 450-kilometer natural gas pipeline. Australian Gas Infrastructure Group built and will maintain the pipeline. Zenith Energy Ltd. built and will operate the power stations
Newmont expects to realize net cash savings of US$34/oz from 2019 to 2023, delivering an internal rate of return exceeding 50%. It said the project will provide Tanami with a safe and reliable energy source while lowering power costs and carbon emissions by 20%.
CEO Gary Goldberg said the development will pave the way to further increase the life of the mine, with ongoing exploration progress potentially extending the closure date beyond 2028.
The company said it upgraded more than 800,000 ounces of gold resources to reserves in 2018 from the Auron ore body at Tanami, the second-largest underground gold mine in Australia.