Major gold producer delays expansion of Peruvian project amid acquisition

Newmont Corp, the world’s leading gold mining company, has announced a further deferral of the expansion of the substantial Yanacocha Sulfides project in Peru, valued at US$2.5 billion, as it focuses on completing the acquisition of Newcrest Mining Ltd.

The decision to delay the project, which has been put off several times due to fluctuating market conditions such as supply chain disruptions, rising commodity prices, and labor market tightness, will be held off for a minimum of two years.

This move is anticipated to save the company approximately US$300 million in 2024.

The nearly US$20 billion Newcrest acquisition, set to be finalized later this year, lessens the immediate need to expand Yanacocha, a site that yielded 230,000 ounces of gold in the previous year.

This strategic acquisition will introduce five additional gold and copper mines into Newmont’s portfolio, elevating the company’s annual gold output to over 8.5 million ounces.

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