Cost Saving Initiatives - Boddington Gold Mine

Boddington Gold Mine commenced operation in 1987 with an initial production of 3.0 Mt/y at a grade of 3.5 git. Head grade has reduced over the life of the mine and the major response to the drop in grade has been to increase mining rates and increase plant throughput. A capital expansion was carried out in 1996 increasing the throughput to 6.0 Mt/y and since that date tonnage has been increased without major capital expenditure. BGM's current mill throughput is 8.77 Mt/y ( 1999). In 1999 the combined basement plant and direct leach plant processed 8,770,055 tonnes to produce 233,507 ozs or 7.262882 tonnes of gold at an average head grade of 0.83 git. With grades of 0.83 git, and gold price at record lows, $US251.95loz in August 1999 or $A393.67loz it has been necessary to make and maintain major cost savings to remain profitable. Boddington Gold Mine has achieved this by a number of steps including a productivity study by outside consultants.