The company revised the project timeline after a detailed review, which considered evolving market conditions, including the war in Ukraine, record high inflation rates, rising prices, supply chain disruptions and competitive labour
US-based gold mining company Newmont has extended the full-funds investment decision for the Yanacocha Sulfides project in Peru to the second half of 2024.
The company said that the project timeline has been revised after completing a detailed review of the scope and schedule of the Yanacocha Sulfides project.
The review considered evolving market conditions, including the war in Ukraine, record high inflation rates, rising prices, supply chain disruptions and competitive labour.
Newmont expects the project to be developed over a span of three years, and add average annual production of around 525,000 gold equivalent ounces per year for the first five years.
Newmont president and chief executive officer Tom Palmer said: “Newmont has a long history of operating in Peru, and Yanacocha is an important part of Newmont’s world-class portfolio and long-term strategy.
“Dean brings a breadth of experience in successfully operating in this important region and a proven capability in building and leading teams to successfully deliver results in complex operating environments.
“Dean is uniquely qualified to ensure operational excellence while working closely with government stakeholders, business partners and local communities to manage the development of this project in the current global economic context.”
Newmont said that it will continue to manage the Yanacocha operations responsibly and explore opportunities to enhance its operations.
The company aims to build two water treatment plants, with an estimated initial investment of around $350m over the next two years.
Prior to the investment decision, Newmont plans to advance the engineering and long-lead procurement activities at the project.
In addition, the company has appointed Dean Gehring as Peru chief development officer to lead the Yanacocha operations and the Sulfides project.
Gehring has previous experience in managing operations and projects in the US, Canada, Indonesia, Suriname and Peru.