Newmont Goldcorp’s (NYSE: NEM) (TSX: NGT) said its $175 million-Ahafo mill expansion project in Ghana had begun commercial production, becoming the third project the company delivers on schedule and within budget this year.
Combined with Subika underground, which was successfully completed in Nov. 2018, the mill expansion is expected to increase Ahafo’s average annual gold output to between 550,000 and 650,000 ounces per year through 2024, while lowering life-of-mine processing costs.
Upgrade is expected to increase average annual gold production at the Ghanaian mine by between 75,000 and 100,000 ounces for the first five years, starting in 2020.
Newmont Goldcorp’s completed in March the installation of a $245-milion power station project at its Tanami gold mine in northern Australia. The additions are expected to provide the operation with a safe and reliable energy source while lowering power costs and carbon emission by 20%, the company said at the time.
Earlier this month, it also began commercial production at its all-electric underground Borden gold mine, located in Ontario, Canada, about 160 km west of the company’s Porcupine mine.
The Ahafo expansion is expected to
deliver an internal rate of return of more than 20% and, together with
other projects at the asset, it will extend profitable production
through to at least 2029.
Commercial production at the Ahafo
mine, located about 190 miles northwest of the capital city of Accra, began in
2006.
Last year, the mine sold 436,000
ounces of gold at all-in sustaining costs of $864 per ounce.