Oct 16 Newmont Mining Corp, the world's
No.2 gold miner, said third-quarter gold production fell 6
percent and it said it faced a record $77 million in maintenance
and restructuring charges.
Newmont cited lower mill availability and recoveries at
Boddington in Western Australia, and lower ore tonnes and grade
mined at Tanami in northern Australia as reasons for lower
Gold production was 1.24 million ounces, down 5.3 percent
from 1.31 million ounces in the same quarter last year.
Newmont said it is expecting a $27 million charge for the
Hope Bay project in Canada and a charge of about $50 million for
restructuring, severance, and related costs during the quarter.
Gold miners are facing difficulties in negotiating with
workers over wages and jobs leading to a series of strikes and
general labor unrest in the mining industry.
Though the price of gold has more than quintupled in
the last decade, from about $300 an ounce in 2002 to over
$1,700, labor and material costs have skyrocketed along with
Rising costs have weighed on the share prices of gold
miners, most of whom have lost value this year even though spot
gold is still well above historic levels.
In January, Newmont Mining said was evaluating development
options and the feasibility of its Hope Bay project in Northern
Canada, and set aside maintenance funding for the site. The
project was not included as part of the Company's 2017 strategic
Last month, Newmont said it plans to shed workers and cut
costs at its giant Indonesian copper and gold mine as it loses a
million dollars a day in cash flow because of low output that
will continue through next year.
Shares of Denver-based Newmont closed at $55.88 on Tuesday
on the New York Stock Exchange.