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.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.