HomeGoldNewmont may develop second Ghana mine next year

Newmont may develop second Ghana mine next year

Newmont’s Ahafo
Plant at night
Accra, Ghana — MININGREVIEW.COM — 10 December 2009 – Newmont Mining Corporation “’ the largest gold producer in the United States “’ has revealed that the company is to make a decision on whether or not to develop a second mine in Ghana by mid-2010.

This possible development was confirmed here by Newmont’s regional senior Africa vice president for gold Jeff Huspeni. “The estimated cost of developing the site at Akyem, in Ghana’s eastern region, will be between US$700 million and US$1 billion (R5.2 and R7.5 billion),” he said at a conference in the Ghanaian capital. The Akyem gold mine has proven and probable reserves of 7.66 million ounces, according to Newmont’s Web site.

The Colorado-based company was also looking for a reliable source of electricity to supply the mine, according to Huspeni. Chronic electricity supply shortages in 2006 and 2007 hindered the operations of miners in Ghana. Four companies operating in the country, including Newmont, together purchased an 80-megawatt power generator in 2007 to overcome the shortages.

Newmont began operations in Ghana in 2006 with its Ahafo mine in the northwest Brong Ahafo region. Ahafo’s output rose 15% in 2008 to 524 000 ounces, the Ghana Chamber of Mines revealed.

Ghana is Africa’s second-largest producer of gold after South Africa.
Caption, Pic 1: Newmont’s Ahafo Plant at night.