Newmont looks to secure Yanacocha sulfides funding this year

US gold miner Newmont looks to receive board approval of the funds for its Yanacocha sulfides project in Peru by the end of this year, which would allow construction of the US$2.5bn project over three years.

CEO Tom Palmer told the Gold Symposium in Lima that the company has completed 50% of the project's engineering and the major works for construction of the camp.

“Our sulfide project represents a great opportunity to diversify our metals profile, so soon Yanacocha will also be known for its copper production, which is particularly significant because it’s a metal that is crucial for the world's transition to a carbon-free economy,” he said. Last September, the Colorado-based company approved an initial investment of US$500mn for the project for 2022.

According to Newmont, the project will require the construction of an autoclave for the production of 45% gold, 45% copper and 10% silver.

Yanacocha, in Cajamarca region, was for many years the largest gold mine in Latin America and has produced nearly 40Moz of the precious metal since 1993.

In February, Newmont acquired Buenaventura's 43.65% interest in Yanacocha, and in April announced the acquisition of Sumitomo's 5% interest in the mine for US$48mn.

Yanacocha sulfides is due to produce 500,000oz/y of gold equivalent.