Newmont to proceed with Boddington gold project

Mining giant Newmont Mining Corporation plans to proceed with the development of the Boddington project in Western Australia for as much as $2 billion in partnership with AngloGold Ashanti Ltd.

Newmont's share of the project cost is expected to be between A$1.22 billion to A$1.35 billion with initial production expected in late 2008. Newmount holds two thirds of the project while Anglo Ashanti owns the other third.

Newmont Mining spokesperson Mike Duggan said the company was still in negotiations with the WA Government for it to bring forward the $40 million upgrade of the Collie-Boddington powerline which is planned for 2012.
Chamber of Minerals and Energy chief executive Tim Shanahan said the Boddington project would further add to the South West region's $4 billion in mining production.
"The Boddington project will further entrench the resource sector as a major employer in the South West," he said.
Boddington Shire President Eddie Flaherty said the project meant opportunities for continued growth in Boddington over the next 20 years.
"[The project] will improve the facilities and infrastructure of the shire," he said. "It gives the council stability and it ensures strategic plans are in place for long term development in Boddington."
Mr Flaherty said he would prefer steady and sustainable growth which was in line with growth in Boddington's infrastructure development.
"We want the infrastructure in place to manage the population growth," he said.
Mr Flaherty said the announcement would place further pressure on the need to bring forward the upgrade to the Collie to Boddington power line.
The project is expected to double Boddington's population of 1,500 residents.
Boddington holds initial gold reserves of over 11 million ounces and has a current estimated mine life of more than 15 years.
Newmont's share of annual production is expected to be 700,000 ounces for the first five years of production and average 600,000 ounces over the life of the project.
Earlier this month, Newmont entered in to an agreement to acquire Newcrest Mining Ltd's 22.22 per cent interest in the Boddington project, with consideration for the purchase being $225 million.