Boddington Gold Mine Moves Closer To Production

Construction of the Boddington Mine 130 km (81 miles) southeast of Perth, is about 89 percent complete. When the $2.9-billion development is finished, it will be the largest gold mine in Australia, producing 31 t/a (1 million oz/year), according to project majority owner Newmont Mining. Newmont?s acting regional group executive for Asia Pacific, Philip Stephenson, told a gold conference in Australia that the project would be ?the biggest thing for Newmont this year.? The project has been in the works for more than 10 years, but because of a three-sided ownership and fluctuating gold prices, it struggled to get started. However, Newmont is set to become the full owner of the project and is moving ahead on the low-grade project. ?We are targeting annual production of 31 t/a (1 million oz/year) for each of Boddington?s first five years. When it is in full production, Boddington will be the largest gold mine in Australia,? Stephenson said. ?The mine?s costs applicable to sales will be around US$9.64/g (US$300/oz) and that puts Boddington into the bottom quartile of the global cost curve. ?Strategically for Newmont, Boddington coming on-line will improve Newmont?s overall global geopolitical risk profile as it delivers greater exposure to an AAA-rated country.? Boddington has a projected mine life of 20 plus years. It has current total reserves of 622 t (20 million oz) and rising. Stephenson said Boddington has the largest reserve base of all gold projects in production or those that are about to go into production in A-rated countries or better. And it will be an important asset for many years to come. Newmont will acquire the remaining 33 percent share held by AngloGold Ashanti in a deal that should be concluded in the next two months. Australian miner Newcrest Mining Ltd. had exited the joint venture several years ago. Newmont had come into the project through the take-over of then Australia?s leading gold miner Normandy Mining, while AngloGold Ashanti gained entry through