Newmont Corporation has announced that its Board of Directors has approved advancing the Ahafo North Project into the execution phase. The project exceeds the company’s required internal rate of return, adding profitable production from the best unmined gold deposit in West Africa.
“I am pleased to announce the approval of full funding for the Ahafo North Project, expanding our existing footprint in Ghana and adding more than 3 million oz of gold production over an initial 13-year mine life,” said Newmont President and CEO, Tom Palmer. “The development of this prolific ore body will leverage our proven operating model and will be supported by our existing world-class Ahafo South operation. The project will be developed and operated in a sustainable and responsible manner to create value for all our stakeholders.”
Located approximately 30 km north of Newmont’s existing Ahafo South operations, the Ahafo North Project will include four opencast mines and the construction of a stand-alone mill. Production from the mine will average approximately 275 000 – 325 000 gold oz with all-in sustaining costs of US$600 – US$700/oz for the first 5 years. Projected capital costs are estimated to be between US$750 – US$850 million with construction expected to be complete in 2H23. At current gold prices, the project is expected to deliver more than a 30% internal rate of return (IRR).
The project will create approximately 1800 jobs at the peak of construction, with more than 550 permanent roles created once the mine is operational. Newmont will work to create lasting value for host communities through local sourcing and hiring. A key aspect of the Ahafo North project’s workforce planning will be a target to achieve gender parity in the workforce when operations begin.
Newmont has conducted extensive regulatory and community engagements, including meeting with traditional leaders, local and regional government agencies and holding public stakeholder engagement meetings. Stakeholders have endorsed the Ahafo North’s infrastructure plans and permits necessary to begin construction have been secured. As the project proceeds, Newmont will continue its robust stakeholder engagement to enhance social acceptance and provide regular updates on the project.
The full scope of funding will be deployed to high-impact activities, including but not limited to:
- Finalising engineering and EPCM services.
- Relocating of the national highway and support of additional resettlement activities.
- Mining development for four opencasts.
- Constructing and commissioning a 3.7 million tpy plant.
- Constructing a Tailings and Wastewater Management Storage Facility.
- Long-lead sourcing including the acquisition of 14 CAT 770 haul trucks.
Read the article online at: https://www.globalminingreview.com/exploration-development/16072021/newmont-enhances-portfolio-with-approval-of-ahafo-north-project/
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