Newmont commissions $175m Ahafo mill

Newmont Goldcorp has commissioned its $175 million Ahafo mill expansion project in Ghana.

The expanded mill is expected to increase Ahafo’s average annual gold production to between 550,000 and 650,000 ounces per year through 2024 while lowering life-of-mine processing costs.

“The Ahafo Mill Expansion represents our third profitable project delivered on schedule and within budget in 2019, along with the Tanami Power project in Australia and the Borden mine in Canada,” said Tom Palmer, President and Chief Executive Officer in a press statement issued by Newmont.

“The mill expansion is expected to generate an internal rate of return of more than 20 per cent at a $1,200 gold price, while also extending profitable production at Ahafo through at least 2029. I continue to be encouraged by Ahafo’s and Ghana’s mineral prospectivity and the potential for ongoing, profitable growth.”

Features and benefits of the mill expansion include:

Increasing mill capacity at Ahafo by more than 50 per cent to nearly 10 million tonnes per year with the addition of a crusher, grinding mill and leach tanks to the circuit

Adding annual gold production of 75,000 to 100,000 ounces per year for the first five full years beginning in 2020

Accelerating efficient processing of ore from stockpiles and the Subika Underground mine, as well as harder, lower-grade ore from Ahafo’s existing pits

Supporting profitable development of Ahafo’s highly prospective underground resources, which continue to demonstrate considerable upside

Commercial production began at Ahafo in 2006, and in 2018 the operation sold 436,000 ounces of gold at all-in sustaining costs of $864 per ounce.