Newmont has “earned the right” to expand

Newmont has “earned the right” to expand

Newmont Asia Pacific Senior Vice President Tom Palmer says his company has earned the right to expand its Tanami operation.

Mr Palmer outlined the reasons why during his address to the WA Mining Club in July.

In Mr Palmer’s first major public address since being named in the new role, Mr Palmer outlined the success Newmont is having with its operations across Australia and in Indonesia.

Mr Palmer formerly headed up the Indonesian segment of the Newmont business prior to it being reintegrated into the Asia Pacific region.

Mr Palmer spoke about how Newmont’s data-driven Full Potential efficiency program had brought great results at both Boddington and Tanami in the Northern Territory. At Tanami, production has increased 22 per cent over an 18 month period – due in part to improvements in truck cycle times, which reduced from 2.21 hours to 2 hours.

Mr Palmer told the audience of more than 400 attendees that successes such as that had earned Newmont the right to seek investment to expand the Tanami operation.

A plan to construct a second decline is on the cards for the Tanami operation with a decision expected towards the end of this year. If the expansion goes ahead, it’s expected to add 100,000 – 120,000 ounces to the mine’s annual production statistics at lower costs for the first five years.

Newmont is also planning to see improvements at the KCGM operation near Kalgoorlie as it implements the Full Potential program there.