Australian Gas Infrastructure Group Archives

Newmont Mining says it has completed the Tanami power project, in the Northern Territory of Australia, safely and on schedule.

The project included the installation of two power stations, a 66 kV interconnected power line, and a 450 km natural gas pipeline. The pipeline was built and will be maintained by Australian Gas Infrastructure Group, while the power stations were constructed and will be operated by Zenith Energy. Capital costs are estimated at approximately $245 million with annual cash lease payments over a 10-year term beginning in 2019.

The successfully completed project is expected to provide the Tanami gold mine a safe and reliable energy source while lowering power costs and carbon emission by 20%, Newmont said. The project is expected to generate net cash savings of $34/oz from 2019 to 2023, delivering an internal rate of return of greater than 50%.

Newmont Chief Executive Officer, Gary Goldberg, said: “In addition to lowering costs and carbon emissions, the completed Tanami power project will pave the way to further extend the life of the operation.

“Consistent execution and delivery remain the hallmark of our ability to generate free cash flow and create long-term value for our shareholders and other stakeholders. Completion of the project coincides with Tanami pouring its 10 millionth ounce of gold on the back of record production of 500,000 oz last year. This achievement is a testament to the skill of our team as well as our valued partnership with the Walpiri people, the Traditional Owners of the land.”

Tanami is Australia’s second largest underground gold mine and one of the most cost competitive gold producers in the world, according to Newmont. Newmont’s continued exploration work at Tanami has created the potential to extend mine life beyond 2028, with additional upside through a possible second expansion project the company expects to make a full funding decision on in the second half of 2019. Last year, more than 800,000 oz of gold resources were converted into reserves from Tanami’s Auron orebody.

Australian Gas Infrastructure Group (AGIG) says it has commissioned Australia’s newest major natural gas pipeline project ahead of schedule.

The 440 km Tanami Natural Gas Pipeline was recently given the final signoff to start operating by the Northern Territory Government. It will fuel the power stations at Newmont Mining’s Tanami gold mine in the Northern Territory.

AGIG’s Chief Customer Officer, Andrew Staniford, said: “We have now commissioned the pipeline and gas is already flowing into Newmont’s Tanami mine site.”

Staniford said the final go-ahead for the pipeline to move into full operational mode followed the introduction of gas and extensive commissioning and testing of the pipe and the facilities at the pressure under which the pipeline will operate. Operations were initially expected to start up in the March quarter.

“These tests were successfully undertaken by AGIG and independently verified, thereby enabling the final approval to be given,” he said.

AGIG was, last year, awarded the contract by Newmont to build, own and operate the new 440 km pipeline, which transports gas to the Newmont mine site, about 540 km northwest of Alice Springs, in the Northern Territory.

Staniford said: “To deliver the project safely and ahead of schedule for Newmont and its operating gold mine is a feather in the caps of all involved and has further cemented AGIG’s proud position as a leading provider and operator of key energy infrastructure throughout Australia.”

The new NT pipeline follows the alignment of Tanami Road and passes through a mix of pastoral land, Aboriginal freehold land and Crown land.

Newmont’s Tanami underground gold mine produced 419,000 oz of gold (attributable to Newmont) in 2017.

Newmont powers up at Tanami gold mine in Australia

Gas starts flowing from AGIG’s 440 km Tanami pipeline