Receive our newsletter – data, insights and analysis delivered to you
  1. News
September 4, 2019updated 19 Feb 2020 1:42pm

Newmont Goldcorp processes first ore at Ahafo mill in Ghana

Newmont Goldcorp has processed first ore at its Ahafo Mill Expansion (AME) project in Ghana, with commercial production expected in the fourth quarter of this year.

Newmont Goldcorp has processed first ore at its Ahafo Mill Expansion (AME) project in Ghana, with commercial production expected in the fourth quarter of this year.

The expansion project is expected to increase average gold production at the Ahafo mine by between 75,000 and 100,000oz a year for the first five years, starting next year.

Following the addition of a crusher, grinding mill and leach tanks, the mill capacity is set to expand by more than 50%.

The AME project is expected to deliver an internal rate of return of more than 20%. Together with other projects in Ahafo, the project will reach profitable production through at least 2029.

Newmont Goldcorp president Tom Palmer said: “Combined with Subika Underground, which was successfully completed in November 2018, the mill expansion will increase Ahafo’s production to between 550,000 and 650,000 ounces per year through 2024, while lowering life-of-mine processing costs.

“The project also accelerates the efficient processing of stockpiled ore and supports profitable development of Ahafo’s highly prospective underground resources, which continue to demonstrate considerable upside.”

Content from our partners
Digitalisation and its impact on the mining industry
Case study: how to save time, cost, and mining interaction for service and dewatering bores
Innovations in mining and the future of the industry

This year, Ahafo mine is expected to achieve record production with improved costs, driven by higher grades of the Subika open pit. The results will be derived with the input of a full year of mining from the Subika Underground and completion of the AME.

Capital costs for the AME are estimated at between $140m and $180m, financed through free cash flow and available cash balances.

Ahafo, which began commercial production in 2006, sold 436,000oz of gold last year, at a cost of $864 per ounce.

The plan to expand Ahafo mill was initially announced in April 2017.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU