Newmont Mining to spend $7b to produce 7m gold ounces by 2017

Newmont Mining Corporation is planning to spend over $7 billion to produce seven million ounces of gold annually by the year 2017.

According to the US mining giant with approximately 93.5 million ounces of gold in reserves, the production target, which was discussed at the company’s investor day conference, represents a potential aggregate increase of approximately 35% in anticipated 2017.

“This production target represents a potential aggregate increase of approximately 35% in anticipated 2017 annual production from the Company’s previously announced 2011 attributable gold production outlook of 5.1 to 5.3 million ounces”, a news release published on its website said.

“Capital expenditures associated with these projects are estimated at approximately $7 billion in aggregate over the next 6-7 years, substantially funded through anticipated free cash flow and existing balance sheet strength”, the release added.

Newmont also eyes 400 million pounds of attributable annual copper production by 2017, representing approximately 90% growth.

Newmont owns two mines in Ghana at Ahafo in the Brong Ahafo region and Akyem in the Eastern region.

By Ekow Quandzie