Newmont restarts operations at Argentina's Cerro Negro gold mine

US miner Newmont has resumed operations at Cerro Negro, following authorization by Argentina's Santa Cruz province, which ordered a suspension after two workers were killed in an accident last month.

“The return-to-operations plan has been reviewed by governmental authorities. We believe it reflects our unwavering commitment to safety and operational excellence,” CEO Marcelo Campos said in a statement.

The restart was urged by actors such as provincial suppliers and services chamber Capromisa, which raised concerns about the effects a prolonged suspension would have on SMEs and service providers.

Capromisa asked authorities to expedite the investigation into the deaths and accelerate administrative processes to allow resumption of operations.

Provincial mining secretary Nadia Ricci told a local broadcaster last week that the stoppage impacted the collection of royalties, as Cerro Negro represents almost 50% of total royalty collection.

Ricci said the reopening will be monitored by authorities, while Newmont continues to advance the investigation into the accident.

Newmont expects Cerro Negro to produce 290,000oz of gold this year, but it is also planning to invest US$350-450mn to extend the mine's useful life beyond 2030 and reach average output of 350,000oz/y.

Cerro Negro host three operating high-grade underground mines: Eureka, Mariana Central and Mariana Norte, in addition to two underground deposits, Emilia, which started commercial production in 2022, and San Marcos, where extraction started in the third quarter last year.

The phase 1 expansion has been planned to improve production and provide a platform to continue exploration and increase the strength of the asset, which is one of the main gold deposits in Argentina and the most important in Santa Cruz.