Newmont Goldcorp's Ahafo Mill Expansion in Ghana achieves commercial production
Newmont Goldcorp (NYSE:NEM) said today its $175-million Ahafo Mill Expansion in Ghana achieved commercial production.
Combined with the Subika Underground, the company said that the mill expansion is expected to increase Ahafo’s average annual gold production to between 550,000 and 650,000 ounces per year through 2024, while lowering life-of-mine processing costs.
"The Ahafo Mill Expansion represents our third profitable project delivered on schedule and within budget in 2019, along with the Tanami Power project in Australia and the Borden mine in Canada,” said Tom Palmer, President and Chief Executive Officer. "The mill expansion is expected to generate an internal rate of return of more than 20 percent at a $1,200 gold price, while also extending profitable production at Ahafo through at least 2029."
Commercial production began at Ahafo in 2006, and in 2018 the operation sold 436,000 ounces of gold at all-in sustaining costs of $864 per ounce.