Newmont ups planned Yanacocha investment

Colorado-based Newmont has increased planned investments for its Yanacocha Sulfides gold project in Peru from US$2.25bn to US$2.5bn, although it will make a definitive decision only by year-end.

Newmont said in its Q1 report that after the decision, development, planned over three years, can move ahead. The mine is expected to add production of 525,000oz/y of gold equivalent.

The first phase would focus on the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha's operations beyond 2040, while the following two phases could extend mine life for several more decades.

Newmont said project estimates remain subject to change based on uncertainties, including impacts from COVID-19, supply chain disruptions and availabilities, commodity price volatility, and other factors that may affect capex.

Yanacocha is one of Newmont's main assets. In February, it produced 19,900oz of gold, for a total of 42,900oz in the first two months, up 4.8% compared to the same period last year.

Last September, Newmont CEO Tom Palmer said the company will invest up to U$500mn through 2022 to advance critical path activities, including detailed project engineering, long-term acquisitions and earthworks.

Yanacocha, in Cajamarca region, is Peru’s second largest gold producer. In the first two months of the year, it produced 8.9% of national gold output.

Local firm Poderosa is the biggest producer, with 44,200oz in the first two months.