Newmont’s Ahafo North achieves commercial production

Newmont (NYSE, ASX: NEM) said its Ahafo North operation in Ghana officially reached commercial production – a key milestone at one of West Africa’s biggest mining projects in recent memory.

The start of commercial output represents the “culmination of a comprehensive development program” that included extensive infrastructure construction, processing facility commissioning and workforce development initiatives, Colorado-based Newmont said late Friday.

Located about 290 km northwest of Ghana’s capital Accra, Ahafo North sits about 50 km from the company’s Ahafo South operation, where Newmont has been mining since 2006. The deposit has allowed Newmont to become the country’s largest gold producer.

Like Ahafo South, the new mine has been earmarked by the company as a cornerstone asset in its global portfolio. Newmont calls it “the best unmined gold deposit in West Africa,” with about 4.6 million oz. in reserves.

Ahafo North comprises four open pit mines and a standalone mill located 30 km from Ahafo South. Newmont began advancing the operation in 2021 and completed most of the key developments earlier this year. First gold pour was achieved on Sept. 19.

Second mine in Ghana

The new operation “demonstrates our commitment to operational excellence while creating enduring value for our investors, communities, host governments and all our stakeholders in this premier mining jurisdiction,” Newmont CEO Tom Palmer said a press release.

Ahafo North was Newmont’s third mining investment in Ghana. Following the sale of the Akyem mine in April, it establishes a second operational site in the country.

The new site is expected to produce between 275,000 and 325,000 oz. of gold annually over a projected 13-year life. Output this year should be about 50,000 oz. as operations ramp up through 2026 to achieve full operational capacity.

When combined with Ahafo South, Ahafo North is expected to produce about 750,000 oz. of gold annually, Newmont also says.