Newmont Corporation says it Board of Directors have approved advancing the Ahafo North project into the execution phase.
The project exceeds the company’s required internal rate of return, adding profitable production from the best unmined gold deposit in West Africa.
“I am pleased to announce the approval of full funding for the Ahafo North Project, expanding our existing footprint in Ghana and adding more than three million ounces of gold production over an initial 13-year mine life,” said Newmont President and CEO, Tom Palmer.
He said the development of this prolific ore body will leverage the company’s proven operating model and will be supported by it existing world-class Ahafo South operation.
“The project will be developed and operated in a sustainable and responsible manner to create value for all our stakeholders,” he added.
Located approximately 30 kilometers north of Newmont’s existing Ahafo South operations, the Ahafo North project will include four open pit mines and the construction of a stand-alone mill.
Production from the mine will average approximately 275,000 to 325,000 gold ounces with all-in sustaining costs of US$600 to US$700 per ounce for the first five years.
Projected capital costs are estimated to be between US$750 to US$850 million with construction expected to be complete in the second half of 2023.
At current gold prices, the project is expected to deliver more than a 30 percent internal rate of return (IRR).
The project will create approximately 1,800 jobs at the peak of construction with more than 550 permanent roles created once the mine is operational.
“Newmont will work to create lasting value for host communities through local sourcing and hiring. A key aspect of the Ahafo North project’s workforce planning will be a target to achieve gender parity in the workforce when operations begin,” the company said.
Newmont has conducted extensive regulatory and community engagements, including meeting with traditional leaders, local and regional government agencies and holding public stakeholder engagement meetings.
Stakeholders have endorsed the Ahafo North’s infrastructure plans and permits necessary to begin construction have been secured. As the project proceeds, Newmont will continue its robust stakeholder engagement to enhance social acceptance and provide regular updates on the project.