Newmont Corporation (TSX: NGT) (NYSE: NEM) plans to invest a vast sum of money to extend the life of its underground mine in Argentina for another decade.
Argentinian government officials told media on Thursday that the mining giant would be putting an additional $540 million into the Cerro Negro mine, the top mining operation in the country’s Santa Cruz province.
The funds will extend the operation’s life until 2034 and Newmont says annual production at the site will be boosted to 350,000 ounces beginning next year. Prior to the funding, the site generated an average of 334 kilo ounces.
The investment will also allow for additional expansions and exploration in the site’s surrounding area.
“Newmont remains committed to expanding the Cerro Negro mining operation in Argentina with the development of the Marianas and Eastern districts,” the company told media in a statement.
La industria minera es desarrollo federal. Newmont invertirá más de 540 millones de dólares para extender la vida útil e incrementar las exportaciones de su proyecto Cerro Negro, ubicado en Santa Cruz, hasta el año 2034. 🇦🇷#CreoEnArgentina pic.twitter.com/2bF1mH4SOs
— Fernanda Ávila (@AvilaFernandaOk) May 31, 2023
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In 2022, the Cerro Negro mine generated over $500 million from exports. The site has a total of seven gold deposits and three different underground mine sections.
In February, Newmont announced that its mineral reserves had increased by 3.3 million ounces, 39 per cent of which is attributable to its operations in South America like Cerro Negro.
Newmont recently released its second annual Climate Report detailing its recent ESG activities including renewable energy initiatives in Australia, water monitoring and the Vision Zero program established in 2021 in collaboration with Caterpillar Inc. (NYSE: CAT) for testing zero-emission battery electric haul systems.
Earlier this month, the Australian miner Newcrest Mining (ASX: NCM) accepted Newmont’s US$19.2 billion takeover bid, thereby making the world’s largest gold miner even larger.
Newmont has operations in North America, South America, Australia and Africa.
The company’s shares rose by 4.11 per cent Thursday to $57.28 on the Toronto Stock Exchange.
rowan@mugglehead.com
