Gold producer Newmont Gold (NYSE) expects to produce 1.85 million oz. in 1995, compared with output in 1994 of about 1.65 million oz.
Completion of a refractory ore roaster at the company’s Carlin mine in Nevada will allow processing of a large stockpile of ore and help boost output.
The roaster was expected to open earlier this year, but a fire delayed the start of operations.
The new roaster is expected to start running shortly, a company official told Knight-Ridder Financial News.
Increased production at the Yanacocha mine in Peru, in which Newmont has a 38% stake, is expected to yield around 450,000 oz. in 1995. Newmont’s share will be 100,000-150,000 oz.
The Zarafshan-Newmont joint venture mine in Uzbekistan will start production in mid-1995, contributing another 100,000 oz. to Newmont’s total output for the year.
The increased expense of processing refractory ores will push production costs up to around US$210 per oz. in 1995, compared with about US$204 in 1994. Costs will be higher at Carlin but will be offset by lower operating expenses at Yanacocha.
Newmont’s 1994 output represents a slight dip from the 1.7 million oz. processed in 1993. The drop was due mainly to construction of the new roaster at Carlin, during which the mine took one of its ore mills off line.
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