DENVER, Sept 10 Cost pressures are constraining
development at Newmont Mining Corp's (NEM.N) Boddington mine
project in Western Australia, the company's chief executive told
the Denver Gold Forum on Wednesday.
He added that detailed cost estimates will be outlined in
the second-largest gold miner's third-quarter earnings report
due in October.
"Costs continue to pressure there (Boddington)," Newmont CEO
Richard O'Brien said in a corporate presentation.
Earlier, a U.S. Securities and Exchange Commission filing
showed Newmont expected to start the Boddington mine in early to
mid-2009, with initial five-year average annual equity
production between 600,000 and 700,000 ounces of gold.
The company also said the Boddington project will continue
to be hit by industry-wide inflationary pressures and a
tightening Australian labor market.
Newmont said it will provide an updated capital cost
estimate and project completion schedule when it releases
Once complete, Newmont said the Boddington mine will have
expected life of more than 20 yrs.
O'Brien also said he continues to be bullish on gold prices,
due to a host of factors, including financial market problems
and lower mine output.
Newmont stock was trading 22 cents higher at $36.95 a share
on the New York Stock Exchange in early afternoon.
Spot gold XAU= remained well below the $800 level at 12:45
p.m. EDT at $763.50/764.50 an ounce, well below $775.80/777.80
an ounce in late Tuesday business.
(Reporting by Frank Tang, writing by Carole Vaporean, editing
by Matthew Lewis)