Tuesday, 28th February 2006 (3193 views)

Gold mining outfit Newmont has decided to go ahead with the development of the Boddington project in Western Australia together with AngloGold Ashanti.

Newmont will own two thirds of Boddington when the current deal with Newcrest Mining goes through. The former agreed to acquire 22.22 per cent of the project from Newcrest.

AngloGold Mining owns one third of the Boddington project.

Wayne Murdy, head of US-based Newmont, said: "We are very pleased to be building this project in partnership with AngloGold Ashanti. With total gold reserves of over 11 million ounces and significant additional mineralized material not in reserves, Boddington represents one of the world’s largest undeveloped gold projects."

"We believe the exploration opportunities at Boddington hold the potential to ultimately double reserves," he said. "For Newmont, Boddington will be a significant addition to our long-term growth profile."

It is expected that construction at Boddington will amount to around $1 billion, with production predicted to begin in late 2008.

Newmont's share of production could be around 700,000 ounces for the first five years, and around 600,000 per year for the remaining lifetime of the mine, estimated at 15 years in total.

 

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