Boddington Corp is London’s and Singapore’s only Main gold company and has established itself in the global gold mining industry. Primary concessions are in worldwide and collectively hold 5.5 million ounces of gold resources; only Newmont is forecasting company-wide attributable gold production of 4.7 million to 5.0 million oz for 2016. Future expansion will be achieved through further acquisitions and organic growth.
Primary concessions operation are in Peru, Boddington Corp. is the principal investor of Newmont NEM; Newmont Mining Corp. is shareholder of Minera Yanacocha S.R.L, is the majority owner of the Conga project, therefore is an extension of Yanacocha, Latin America’s biggest gold mine.
Welcome to the Conga project, Peru
The International Finance Corp. owns the remainder. Conga’s environmental impact study was approved in October 2010. Minas Conga will require an investment of $4 billion to $4.8 billion. Production at Conga is scheduled to begin in 2016, with average output during the first five years of 580,000 ounces to 680,000 ounces of gold, and 155 million to 235 million pounds of copper.
Conga Project Highlights:
- Potential to add as much as 50% of current gold and copper reserves over next 10 years;
- First production expected in late 2016 to early 2017, with approximately 6 months expected for ramp-up to commercial production;
- Annual attributable production for the first five years of 300,000 to 350,000 ounces of gold and 80 to 120 million pounds of copper;
- Estimated attributable capital costs of $2.0 to $2.4 billion;
- Estimated strip ratio of 1.0 to 1.5:1;
- Life of mine approximately 19 years;
- Estimated average costs applicable to sales for the first five years of $400 to $450 per ounce of gold and $1.25 – $1.75 per pound of copper; and
- Copper revenues ata $3.00 copper price sufficient to offset gold operating costs.
The project, located some 3,700 m (12,140 feet) above sea level, involves moving the water from four lakes high in the mountains into reservoirs the company would build
Fluor Corp., another partner in the project, said it received a full notice to proceed with the earthworks at the mine, Fluor is providing engineering, procurement and construction services for the project and has already taken part in the previous four stages of the development. The project involves the development of two open pit mines including waste rock handling and ore stockpiles, process facilities to treat copper and gold ore to produce a concentrate product, infrastructure, water management, roads, camps and offices. When complete, the Conga project will mine and process about 570 million tons of ore from two gold and copper porphyry deposits at an average altitude of about 13,000 feet above sea level in the Peruvian Andes.
Newmont is making all efforts to mend fences with the local communities by focusing on building water reservoirs first before resuming mining activities.