US-based mining company Newmont is set to invest $540m to extend the life of its Cerro Negro gold mine in Santa Cruz province, Argentina, to 2034.

The investment is expected to enhance its production to more than 350,000 ounces from next year, and provide scope for further exploration and additional expansions.

Cerro Negro gold mine comprises three underground operating mines, Eureka, Mariana Norte and Mariana Central.

The operation also includes two deposits currently under development, as along with five other deposits in late-stage evaluation for development.

Last year, the Argentine mine generated more than $500m in exports.

Newmont in a statement said: “Newmont remains committed to expanding the Cerro Negro mining operation in Argentina with the development of the Marianas and Eastern districts.

“Future development capital costs, not including what it has already committed to the project, are estimated to be $350m and $450m.”

According to Bloomberg report, Argentina’s political volatility has made it a difficult place for business, and is seeking ways to improve its deposits and attract currency.

Last month, Newmont has signed a binding scheme implementation deed (SID) to acquire Australia-based gold mining company Newcrest Mining for an enterprise value of A$28.8bn ($19.26bn).

The agreement follows an exclusivity deed between the two companies, to allow Newmont to conduct a confirmatory due diligence on an exclusive basis.