Colorado-based Newmont Mining (NYSE) is set to use technology developed in the U.S. to mine gold in the former Soviet Union after signing a joint venture agreement with the Republic of Uzbekistan.
Under the agreement, Newmont will employ its leaching technology at the Muruntau gold mine to treat low-grade ore in a stockpile containing 165 million tons of material averaging 0.034 oz. gold per ton.
The Muruntau is one of the world’s largest open pit gold mines with annual output of 1.8 million oz. annually.
The stockpile is expected to yield 2.8 million oz. gold over a period of 15 years, according to Newmont estimates, which are based on an assumed recovery rate of 50% of the contained gold.
Production from the stockpile is scheduled to begin next year and cash costs are expected to be low enough to make the operation profitable. Pending completion of the feasibility study, Newmont says capital costs for the project are estimated at about US$75 million, of which 66% would consist of debt and the balance equity shared on a 50/50 basis by the joint venture partners.
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