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Newmont delays investment decision on Peru mine to 2024

Published 09/15/2022, 09:50 AM
Updated 09/15/2022, 09:59 AM
© Reuters. FILE PHOTO: A small toy figure and gold imitation are seen in front of the Newmont logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration
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(Reuters) - Top gold miner Newmont Corp said on Thursday it would delay the investment decision for the $2 billion Yanacocha sulfides project in No. 2 copper producer Peru to the second half of 2024.

The project is part of a planned expansion of Newmont's Yanacocha gold mine to extend its life beyond 2040.

The company blamed market conditions for the delay, including the "continued war in Ukraine, record inflation, rising prices of commodities and raw materials, prolonged supply-chain disruptions, and competitive labor markets".

After the investment decision, Newmont expects the project to take three years to develop, and add average annual production of about 525,000 gold equivalent ounces per year for the first five years of operation.

© Reuters. FILE PHOTO: A small toy figure and gold imitation are seen in front of the Newmont logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration

The world's largest gold miner also appointed Dean Gehring as chief development officer of its Peru operations to lead the Yanacocha project.

The Denver-based firm said it would continue to manage the Yanacocha operations, including the construction of two water treatment plants, with an anticipated initial spend of around $350 million over the next two years.

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