Works are underway on a major expansion that will see Newmont’s Tanami gold operation in the Northern Territory almost double its yearly output.
Currently Tanami is responsible for around 400,000 ounces (oz) of Newmont’s gold production, but the construction of a new 1.5km underground shaft will see that number climb significantly.
The new shaft, which is currently being constructed, is touted to be the deepest of its kind in Australia.
“This shaft is designed to produce 3.8 million tonnes a year,” Senior construction manager Grant Brinkman told the ABC.
“We’re going to gain an extra million tonnes a year at significantly reduced operating costs to Newmont mining.”
With a mechanised underground crushing system that hoists up to 28 tonnes of ore to the surface per skip, the new shaft will operate much faster than the site’s current truck haulage method.
“The trucks take about a three-hour return trip to drive underground and pick up a load of rock and come back,” Brinkman said.
“This shaft system, it can hoist the equivalent amount of rock in about two and half minutes.”
With the project well on track, the shaft is anticipated to be fully operational by the end of 2026.
The only question remains whether the recent record gold prices will remain steady to see Newmont get the most bang for its buck.
With gold having recently crossed the $5000/oz threshold, industry experts say yes.
Major investment banks Goldman Sachs and UBS have released glowing gold reports, with Goldman in particular estimating gold could reach over $5800 by the end of the year.
Whether prices reach such dizzying highs or remain close to their current levels, Newmont is set to thrive amid gold’s latest day in the sun.
