Tag Archives: mine power

Zenith Energy completes Jundee power station expansion for Northern Star

Environmental, Mine operation news, Mining services, Power supply for mines, Precious metals, , , , , , ,

Independent power producer, Zenith Energy has completed and commissioned its 6 MW build own and operate (BOO) power station expansion at Northern Star Resources’ Jundee gold mine, in the northern Goldfields region of Western Australia.

The 6 MW of expansion capacity at Jundee adds to the existing 19.2 MW, increasing Zenith’s BOO capacity to 25.2 MW, Zenith said. The power station comprises an upgrade to the existing facility with the installation of an added 6 MW of Jenbacher 620 Spark Ignittion gas generator technology.

The station incorporates natural gas fuelled generators, which will provide the Jundee mine with highly efficient, cost effective and clean gas fuelled power generation into the future, according to Zenith.

The Jundee processing circuit is a conventional CIL plant with a hard-rock processing capacity of approximately 1.8 Mt/y. The process consists of a single toggle overhead eccentric swing jaw crusher followed by a SAG and ball milling circuit incorporating gravity recovery and CIP process, achieving 92% recoveries. Northern Star produced 285,000 oz of gold at Jundee in its 2018 financial year.

Zenith said: “This project demonstrates the company’s ability to design, construct, install and commission expansion projects to meet our existing customers’ changing power supply requirements.”

The full commissioning of the Jundee expansion delivers a 6 MW uplift in installed BOO MW capacity in the company’s portfolio, and a corresponding uplift in revenue from the September quarter and going forward, Zenith said.

With the completion of the Jundee expansion, Zenith has established a strong track record for project delivery, with its portfolio of 219 MW of contracted BOO capacity and a total of 438 MW of total power generation capacity under control, it said.

Zenith Managing Director, Hamish Moffat, said: “We are proud to continue our partnership with Northern Star Resources at Jundee through the delivery of the Jundee Expansion Project, and now look forward to delivering additional reliable, cost effective power to support the Jundee gold mine.”

Gold Fields goes for low-carbon energy solution at Agnew gold mine in Australia

Environmental, Mine operation news, Power supply for mines, Sustainable mining, , , , , , , , , , , ,

Gold Fields says its Agnew gold mine, in Western Australia, will become one of Australia’s first mining operations to be predominantly powered by renewable and low-carbon energy following a deal with global energy group EDL.

Gold Fields and EDL have agreed on a A$112 million ($78 million) investment in what the gold miner says is a “world-leading energy microgrid combining wind, solar, gas and battery storage”.

The Agnew mine consists of two underground complexes and one processing plant, with a capacity of 1.3 Mt/y consisting of a three-stage crushing circuit, two-stage milling circuit, gravity circuit and carbon-in-pulp circuit.

The microgrid will be owned and operated by EDL, which will recoup its investment via a 10-year electricity supply agreement with Agnew.

The project, which is already under construction, has the backing of the Australian Government with the Australian Renewable Energy Agency (ARENA) contributing a recoupable A$13.5 million to its construction, according to Gold Fields.

The Agnew microgrid is initially forecast to provide 55-60% of the mine’s energy needs, with potential to meet almost all energy requirements at certain times, Gold Fields said. The Agnew microgrid will consist of five wind turbines delivering 18 MW of power, a 10,000-panel solar farm contributing 4 MW, a 13 MW/4 MWh battery energy storage system, and a 16 MW gas engine power station to underpin supply when required.

EDL said stage one consists of a new off-grid 23 MW power station incorporating 16 MW gas and 3 MW diesel generation and 4 MW photovoltaic solar, which is on track for completion in mid-2019. Stage two includes 18 MW wind generation, a 13 MW battery and an advanced micro-grid control system, with construction recently started and due for completion in 2020.

The hybrid microgrid at Agnew follows the announcement of a microgrid at Gold Fields’ Granny Smith mine, featuring 20,000 solar panels and a 2 MW/1 MWh battery system planned for completion in the December quarter.

Gold Fields Australia Executive Vice President, Stuart Mathews, said the Agnew hybrid microgrid project reflects the company’s strategic objective to strengthen energy security, optimise energy costs and reduce its carbon footprint through innovation and the adoption of new technologies.

“The ARENA contribution supports and encourages our efforts. We are making staged investments across our mines in Western Australia to significantly ramp up the innovative use of renewables to meet our dynamic and growing load requirements,” Mathews said.

The funding is part of ARENA’s Advancing Renewables Programme. ARENA CEO, Darren Miller, said the project marks a growing shift in the mining sector’s thinking around powering mine sites.

“The project Gold Fields is undertaking will provide a blueprint for other companies to deploy similar off-grid energy solutions and demonstrate a pathway for commercialisation, helping to decarbonise the mining and resources sector,” Miller said.

Gold Fields says it is embracing innovation and technology across all levels of its mining operations and Mathews said this also extended to its approach to power supply and demand management.

“At Agnew, we will be using instrumentation to detect approaching cloud cover for solar and, potentially in the future, detect changes in wind velocity. Based on this data, the gas power station will have forward-looking systems in place to schedule gas generators in response to forecast changes in the renewable energy supply,” he said.

EDL CEO, James Harman, said the company has seen increasing momentum towards hybrid energy solutions, particularly in remote, off-grid locations. “EDL is pleased to be an active contributor to Australia’s transition to sustainable energy,” Harman said. “Our knowledge and experience from our successful hybrid renewable projects will enable us to provide Agnew with greater than 50% renewable energy over the long term, without compromising power quality or reliability.”

Mathews said: “The configuration of Agnew’s hybrid solution is a first for Gold Fields and is an excellent example of using innovation and technology to improve efficiencies and lower costs. We are fast sharing lessons from this project with our other regions, as part of our global strategic initiatives to improve our security of supply and reduce carbon emissions.”

Gold Fields is the third largest gold producer in Australia. It currently owns and operates three mines in Western Australia and is completing the construction of a fourth, Gruyere, in joint venture with Gold Road Resources.

Adaman’s Kirklalocka gold project to be powered by LNG

Environmental, Mineral project development, Mining services, Power supply for mines, Precious metals, Sustainable mining, , , , , , , , ,

Adaman Resources’ owned Kirkalocka gold project, in Western Australia, is set to be powered by LNG after the asset owner and EVOL LNG signed a agreement.

The long-term arrangement, between EVOL and Adaman Resources’ wholly-owned subsidiary Kirkalocka Gold SPV Pty Ltd, will see EVOL LNG fuel Zenith Energy’s 14.5 MW power station, with supply planned to commence from September 2019.

The gold mine, around 70 km south of Mt Magnet in the mid-west region of Western Australia, is set to restart operation after more than a decade, with the mine’s new owners refurbishing the processing plant and increasing its capacity to over 2.2 Mt/y.

EVOL LNG and Wholesale Manager, Nick Rea, said the use of LNG as an alternative to diesel will help minimise the mine’s carbon emissions.

“LNG produces 25% less CO2 emissions than diesel, and during the initial six years of operation, the mine will avoid 50,000 t of greenhouse gas emissions by fuelling its power station with LNG instead of diesel. This is the equivalent of keeping around 3,000 cars off the road,” Rea said.

EVOL, part of Wesfarmers Chemicals, Energy & Fertilisers, will build, own, operate and maintain the on-site LNG storage and vaporisation facility at the mine, it said. “The facility will use EVOL LNG’s modular design which allows for fast installation and expandability to suit the mine’s growing energy requirements,” the company added.

Adaman Resources’ Chief Executive Officer, Craig Bradshaw, said EVOL LNG will provide environmental, financial and economic benefits for the company.

“Utilising LNG as an alternative to diesel-fired generation will significantly reduce our energy costs and exposure to volatile diesel prices. Based on the current diesel price, we estimate our energy costs to be reduced by more than A$13 million ($9 million) during the first six years of operation,” he said.

EVOL’s Rea said Kirkalocka was the company’s third major contract in the mid-west in recent years; he sees huge potential for growth in this region.

“The scarcity of gas pipelines and absence of grid power would otherwise force off-grid mines to use diesel for power generation, but we are able to provide a much better solution with LNG. It’s clean, safe, reliable and lower cost than diesel.

“We have proven ourselves to the mining industry over the last decade, with seven mine sites now powered by EVOL LNG,” he said.

Aggreko and Wärtsilä to bring ‘completely new concept’ to power market

Environmental, Power supply for mines, , , , , , ,

Just a day after announcing the launch of its new Modular Block, Wärtsilä has entered into a co-operation agreement with Aggreko to introduce “a completely new concept to the power market” built around the power plant solution.

This pre-fabricated, modular, and expandable enclosure features medium-speed Wärtsilä 32 and 34 family engines which can run on a variety of fuels and, as a re-deployable power generation solution, enables new business and financing models, such as power as a service or rentals, according to Wärtsilä.

“The Wärtsilä Modular Block solution can be installed in a matter of weeks, and can be expanded to accommodate increased energy needs. Similarly, it can be dismantled and relocated to alternative locations as and when required, making it highly suited to temporary power generation,” Wärtsilä said.

Under the agreement, Wärtsilä will provide the technology and design for the core power generation equipment, with Aggreko, a leading provider of mobile modular power, temperature control and energy services, incorporating Wärtsilä’s Modular Block enclosure and power generation within its Rental/Power Solutions sales offering.

According to Wärtsilä, the use of its medium-speed engines in the Modular Block introduces a totally new efficiency dimension to the temporary power market. “This results in major savings in fuel consumption and operating costs, while harmful greenhouse gas emissions are considerably reduced.”

Furthermore, the solution is easy to integrate with renewable energy and storage systems, making it ideal for providing grid stability and balancing when integrating more intermittent renewable energy sources. The medium-size engines can run on natural gas, as well as biofuel for a fully sustainable solution.

Jean Nabb, Director, Strategic Partnerships, Wärtsilä Energy Business, said: “We are delighted to be partnering with Aggreko to enter this rapidly growing market. Aggreko is the global leader in mobile, modular power, and the Wärtsilä Modular Block solution opens up exciting new opportunities both for stationary and temporary electricity generation of up to 100 MW.”

Stephane Le Corre, Strategy and Commercial Development Director, Aggreko, said: “We recognise the growing market for distributed generation, and the increasing need for new thermal power solutions that are cost-comparable with permanent generation. We see a number of potential applications for Wärtsilä’s Modular Block on projects of typically five-to-10 year duration, with its ability to achieve high levels of efficiency, while still being re-deployable.”

Trafo transforms fortunes at KwaZulu-Natal mining operation

Equipment maintenance, Mining equipment, Mining services, Power supply for mines, , , , ,

Trafo Power Solutions recently came to the aid of a mining company in KwaZulu-Natal, South, Africa, suffering from a transformer failure.

Following the incident, dry-type transformer specialist, Trafo, designed, built and delivered a non-standard cast-resin replacement for the company – in just five weeks.

David Claassen, Managing Director of Trafo Power Solutions, said: “Once the situation with the old transformer was assessed, it was decided it would be more economical to replace the unit than to embark on major repairs.

“We were able to accommodate the customer’s specifications in our replacement design, and have the unit manufactured by our European partners (the TMC transformers facility, in Italy, pictured) in just four weeks. After that, it took just a week to fly in the transformer and deliver it to the customer.”

Claassen said it is not uncommon for transformer replacements of this scale to take anything from 12 to 14 weeks, with Trafo’s rapid turnaround time highly valued by the customer.

The mine required a 1,600 kVA dry-type DYN11 transformer that stepped 33 kV down to 550 V, with a non-standard tap setting arrangement of seven tap settings instead of the normal five.

Dry-type transformers – also called cast-resin transformers – are growing in popularity as users recognise their safety benefits, as well as their economy and flexibility of placement, according to Trafo. To meet this demand, Trafo works in close collaboration with established and well-resourced manufacturing partners in Europe to source tailored designs that meet customers’ exacting specifications, it said. This comes on top of ongoing after-sales service.

Cummins powers up for the future of mining

Environmental, Mine ventilation, Mining equipment, Mining services, Power supply for mines, Sustainable mining, , , , , , , , , , ,

Mining operations are embracing the opportunities created by new technology, from automation and electric vehicles to renewable energy, but what can traditional fossil fuel power generation contribute to this technology-led evolution of mining? Craig Wilkins, Director Prime Power at Cummins, explains how natural gas power is key to meeting the industry’s power needs in the coming decades.

Many mining operations take place in remote parts of the world where access to large electric utility feeds is either unavailable or requires significant investments in electrical transmission and distribution. These same sites may also have little or no access to pipeline gas, or experience a variation of natural gas supply. In addition, they are operating in the most extreme climates imaginable, faced with blistering heat, the wettest humidity and high altitudes.

Therefore, the need to secure a reliable prime and peaking power supply to keep production up and running 24/7 is paramount.

Cummins has responded to this challenge with a significant investment into the natural gas arena with the launch of its HSK78G gas-powered generator, a flexible prime power solution for heavy-industry installations in the most extreme environments. Its extreme engineering is designed to push the boundaries of performance and challenge the perceived limitations of natural gas generators for mining operations. It has barrier-breaking fuel flexibility, able to burn pipeline natural gas, flare gas and biogas, even the lowest BTU methane down to 40MN, and free fuel sources, with high efficiency and low emissions.

The investment on the HSK78G comes as the power market across the globe is changing. Technological advances in renewable energy and its application with batteries as part of modular power networks, tend to dominate the future of power generation. The concept is flexible, scalable and able to power entire cities as well as remote off-grid installations – such as mines. So why invest in traditional natural gas power?

Gas vs diesel

Miners continuously look for ways to lower their cost of production.  One of the major sources of cost for an open-pit mine site is fuel.  Some mines have access to an un-interruptible supply of natural gas that offers them a lower total cost when compared to diesel. 

Although technological advancements in natural gas storage and filling have yet to yield an economical replacement to diesel engines in mobile mining equipment, prime power generator sets are quickly moving towards lean burn, natural gas technologies. Lean burn gas powered generator sets use twice as much air in the fuel/air mix than required for total burn, which lowers burn temperature and NOx output, ensuring compliance with emission regulations.

Due to increasing emissions limits being adopted for generator sets, diesel generators sometimes are limited in their use. Lean burn, natural gas generator sets typically have ten times lower NOx than diesel equivalents (250-500 mg/Nm3 for natural gas compared to 2,500-3,000 mg/Nm3 for diesel.) Also, lean burn particulate levels are almost zero, so meeting location specific emissions regulations can be far easier across a global perspective.

Power generation fuel flexibility

Technological advances in design, running in tandem with market change, will result in gensets that can use fuel efficiently in varying qualities. This innovation is demonstrated by our new HSK78G, which delivers high electrical efficiency of up to 44.2% (50 Hz) and 43.5% (60 Hz) on a range of pipeline natural gas down to 70 methane number (MN) without impacting power output and efficiency.

Ultimately this fuel flexibility empowers operators to derive clean power from what would otherwise be regarded as waste products, at worst emissions. The technology for smarter and cleaner power solutions is speeding up and adoption will continue to grow as more mines embrace its capital expenditure (capex) and operational expenditure (opex) advantages.

Engineered to extremes

A further challenge for the mining operation is the environment in which the generator set operates. As engines operate, they produce heat and tend to be more sensitive to the ambient temperature levels. A generator’s ambient capability is defined as the maximum temperature at which it can operate without experiencing a loss of efficiency and it is an essential factor for customers operating in such extreme environments.

Without an engine capable of meeting high ambient temperatures, customers risk having to derate their engine, which can lead to reduced power efficiency and shorter operational life from the generator or having to stop it altogether. The HSK78G has been designed to operate at the highest ambient temperatures in the most remote locations, all far from the closest grid, offering full power capability without derating at 50°C (122°F) and 500 m (1,640 ft).

Gas vs renewables

The focus of many customers is to achieve the optimum levelised cost of electricity (LCOE) given the availability of different technologies which are suitable for their application. This can range from 100% gas generation through to a balanced mix of renewable sources such as wind or solar, and complementary storage technologies that leverages the reliability of gas generation to ride through periods where renewables are limited by their cyclical nature. The technology mix utilised will drive the different capex and opex cost scenarios that will ultimately affect the LCOE.

Improvements in gas engine technology, such as in the new HSK78G engine from Cummins, have pushed maintenance and overhaul limits well beyond the traditional envelope, thereby lowering opex costs over time. Jointly, we will continue to see cost reductions in storage and battery technology as volumes increase. For the near future, however, miners will continue to look for mixed technology to balance their capex and opex trying to achieve the lowest LCOE for its sites.

Preparation for electrification

As much as 40% of an underground mine’s energy outlay is spent on powering ventilation systems to remove pollutants from tunnels. Reducing the use of fossil fuels underground could have significant cost benefits for underground mines. In addition, The International Council on Mining and Metals have set their vision to provide solutions for minimizing the impact of underground diesel exhaust by 2025. As more underground mining vehicles and equipment contemplate the potential benefits of electrification, Cummins will continuously invest in power systems that will be ready to support such power need and respond to any changes in the mining industry

The right technology choice

In the future most power systems will require a mix of technologies that are specifically suited to their environment, emissions zone and location.  Natural gas power offers mining operators an efficient and proven and prime power solution. From Cummins perspective, a lot of investments are made in new gas engineering technology, which are demonstrated with the HSK78G gas series. Additional product investments are being made within the 500-1 MW space, which will be released later this year, offering a comprehensive gas product portfolio to meet all market requirements. Progressively stringent global emissions standards are also driving Cummins investment into a variety of technologies – natural gas, diesel, batteries and fuel cells, to ensure that customers have the right power for the right application.

B2Gold weighs up in-pit crushing and conveying as Fekola mine expansion economics stack up

Bulk handling, Mine operation news, Mineral processing, Mineral project development, Mining equipment, Mining finance, Mining project news, Mining services, Power supply for mines, Precious metals, , , , , , , , , , ,

B2Gold’s plan to expand its Fekola gold mine, in Mali, by 1.5 Mt/y could see an up to $56 million investment in additional excavators, trucks, drills, support equipment and wheel loaders, according to the latest project economic study.

The expansion study preliminary economic analysis showed the company could increase throughput to 7.5 Mt/y, from the current 6 Mt/y base rate, by injecting just under $50 million over a period of some 18 months for processing expansion and upgrades.

As currently envisioned, the processing upgrade would focus on increased ball mill power, with upgrades to other components including a new cyclone classification system, pebble crushers, and additional leach capacity to support the higher throughput and increase operability.

“Critical path items include ball mill motors and the lime slaker, both of which will be commissioned in Q3 (September quarter) 2020,” B2Gold said.

“In parallel with the expansion, B2Gold is studying the addition of a solar power plant, which would reduce operating costs and greenhouse gas emissions. The current on-site power plant has sufficient capacity to support the expanded processing throughput, with or without the solar plant.”

On top of this, the company would need to invest in its mining fleet.

The current mining fleet consists of four Caterpillar 6020B excavators with haul trucks, drills, and support equipment to match, and mines an average of 36 Mt/y. The Whittle study results currently indicate mining production rates ranging from 54 Mt/y to 76 Mt/y are optimal to support the expanded processing rates over the life of mine and optimise head grade during the period 2020-2024.

B2Gold said: “Increased production will be achieved with the addition of two to four excavators with corresponding trucks, drills, and support equipment. Large front-end loaders would also be included to maintain fleet flexibility.

“Mine fleet expansion timing and scale will be optimised during Q2 (June quarter) 2019 and will generally be equipment loan/lease financed over a five-year period. The study has included $28 million for expansion to 54 Mt/y and an additional $28 million (for a total of $56 million) to go to 76 Mt/y.

“In parallel with the Whittle study, B2Gold is reviewing in-pit crushing and conveying as a means to reduce operating costs and potentially implement tailings and waste co-disposal at the Fekola mine.”

The expansion study estimated optimised that the life of mine could extend into 2030, including significant estimated increases in average annual gold production to over 550,000 oz/y during the five-year period 2020-2024 and over 400,000 oz/y over the life of mine (2019-2030).

This would see an increase in project net present value of approximately $500 million versus the comparable amounts in the company’s latest AIF mineral reserve life of mine model based on a $1,300/oz gold price and a discount rate of 5%.

FLSmidth’s SAGwise makes an impact on mill consumables

Comminution of minerals, Equipment maintenance, IoT, Mineral processing, Mining equipment, Mining maintenance, Mining services, Mining software, Power supply for mines, Sustainable mining, , , , , , , , ,

Just over a year since launching its SAGwise™ total process control solution for semi-autogenous (SAG) mills, FLSmidth is putting some savings statistics behind the sensory and process optimisation system.

SAGwise is designed to optimise the use of the three main consumables in SAG milling: power, media and liners.

Winston Mokoena, Key Account Manager at FLSmidth, said the solution reduces critical impacts inside the mill by up to 45%. This adds life to wear liners and grinding balls, helping to prolong liner life between maintenance and giving mills more uptime, he added.

“SAGwise can improve mill production by 6% and substantially reduce process variability,” Mokoena said. “This ensures that the mill provides a constant and optimal feed to the next stage of the process, effectively facilitating better performance of downstream operations.”

Among the challenges mill optimisation tries to address is too little material in the mill, or too much. Too little leads to critical impacts between the grinding media and the mill liners, damaging both elements without producing value. If the mill is overfilled with mined material, on the other hand, this results in grinding inefficiencies.

“The SAGwise system uses four or eight unidirectional or bidirectional audio sensors located in close proximity to the mill, which detect the analogue sounds and convert them into digital signals for analysis by a processing unit,” FLSmidth said. “This unit uses the sound patterns and other process variables to determine the necessary adjustment to the mill’s feed, speed and pulp density.”

So direct are the improvements that can be achieved by this solution that customers can pay back their investment in less than six months, depending on the commodity value and the specific mill environment, according to FLSmidth.

“The parameters that are monitored by SAGwise include the mill’s power consumption, load impacts, mill load and pulp density,” Mokoena said. “The system then responds to these parameters by controlling the mill speed, the feed rate and the water to achieve the ‘sweet spot’ where the mill runs at optimum efficiency.”

Trafo transforming mobile process plant operations at Sierra Leone mine

Environmental, Mine operation news, Power supply for mines, , , , ,

Trafo Power Solutions says four of its dry-type transformers have been proving their worth on a mobile process plant at a Sierra Leone mine since last year.

The dry-type transformers have been so successful in powering the process plant that the customer has ordered six more for its recent phase two upgrade.

Trafo Power Solutions Managing Director, David Claassen, said: “The mine required a solution that would withstand the demanding conditions of a mobile process plant needing to be moved frequently over rugged mining terrain – as often as once a month. They could not risk using a conventional oil-cooled transformer as they needed to avoid any risk of fire or oil leaks. They also needed a product that would require little to no maintenance.”

The second contract was a repeat of the initial order and comprises two 800 kVA units, one 1,600 kVA unit and one 2,000 kVA unit as well as a further two transformers – 1,600 kVA and 800 kVA – which will replace two existing oil filled transformers.

The company said: “Demonstrating its flexibility in meeting specific customer requirements, Trafo Power Solutions designed the solution to cater for the mine’s unusual voltage levels of 13.2 kV/480 V at 60 Hz.”

The transformers are installed in a 6-m-long E-house on the mobile process plant, which is moved around the site on skids as required by the mining plan.

“We were able to customise the design of the transformers for the customer’s specific application,” Claassen said.

“This required a special reinforced frame to accommodate the constant vibration of the working plant, as well as the bumping motion when the skid-mounted plant is dragged to a new location. The design also included anti-vibration damping on the transformer feet, to further mitigate the impact of the vibration.”

The entry of Trafo Power Solutions dry-type transformers to the African market coincides with a growth in the use of modularised sub-stations, according to the company. “Due to the absence of oil as a coolant in dry-type transformers, they are suitable to be used in confined spaces without any of the conventional infrastructure usually necessary to protect the environment from possible oil spillage,” Trafo said.

Claassen said: “Modular and mobile sub-stations are growing in popularity for applications all around Africa, as they can be fully prepared under workshop conditions, reducing the work required on site.

“In terms of the installation of the transformer, for instance, we ensure that the temperature control relays are fully programmed and tested in South Africa, along with the fan system – making it ready for action on site.”

In the unlikely event of any further attention being necessary, Trafo Power Solutions can mobilise service support to any of the sites it supplies, it said.

Newmont powers up at Tanami gold mine in Australia

Environmental, Mine operation news, Mining services, Power supply for mines, Precious metals, , , , , , , , ,

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.