Newmont Goldcorp Corp. [NGT-TSX; NEM-NYSE] has started commercial production at an Ontario gold operation that it has dubbed its mine of the future. The world’s largest gold producer said the Borden mine near Chapleau, Ontario has achieved commercial production safely, on schedule and within budget.
The mine features state-of-the-art health and safety controls, digital mining technologies and processes and low carbon energy vehicles. Key aspects include an electric and battery powered underground fleet.
“Borden joins the next generation of Newmont Goldcorp mines and leverages our leading land position to anchor this new gold district in Ontario,” said Newmont Goldcorp President and CEO Tom Palmer.
The company’s battery and electric mobile equipment will eliminate all greenhouse gases (GHGs) associated with the movement of ore and waste rock, equal to roughly 50% of the total GHGs on site – or 5,000 tonnes per year of carbon dioxide – as well as reduce maintenance and energy costs.
As a result, the mine will require 50% less ventilation than a baseline diesel-powered underground mine.
The official inauguration for the Borden Project was held on September 23, 2019 in a ceremony that was attended by dignitaries from across Ontario. They included Ontario’s Minister of Energy, Mines and Northern Development Greg Rickford and Todd White, Newmont Goldcorp’s Regional Senior Vice President for North America.
In recognition of Borden’s contribution to the future of safe and sustainable mining, the Canadian and Ontario governments each granted $5 million towards the electrification of the mine.
Ore from Borden is processed at the existing mill at the company’s Porcupine operation in Timmins, 180 km east of the mine site. Porcupine is expected to produce 225,000 ounces of gold this year at an all-in-sustaining cost of US$901 an ounce, the company has said.
On Tuesday, spot gold was trading at US$1,480.70 an ounce.
“At 1,000 km2, Borden’s land package represents additional exploration upside as the Borden deposit remains open at depth,” the company said.
Holding operations that result from Newmont Mining’s recent US$10 billion takeover of Canadian mining giant Goldcorp, Newmont Goldcorp now ranks as the world’s largest gold producer with assets across the Americas, Africa and Australia.
The company recently said attributable gold production is expected to be 6.5 million ounces in 2019. North American production is expected to be 1.1 million ounces this year. The outlook includes the impact of blockades at the Penasquito [mine in Mexico], the conveyor fire at Musselwhite (Ontario) and the installation of additional safety controls at Red Lake (Ontario).
On Tuesday, Newmont Goldcorp shares eased 0.865 or 43 cents to $49.69. The shares are currently trading in a 52-week range of $40.01 and $54.87