Why The Commencement Of Production At The Merian Mine Will Boost The Fortunes Of Newmont’s South American Gold Mining Operations
Newmont Mining’s Merian gold mine, located in Suriname, is set to commence production in the second half of the year. The commencement of production at the Merian mine will revitalize the fortunes of Newmont’s South American gold mining operations. Newmont’s ongoing operations in the Yanacocha district of Peru are nearing the end of their mine lives, with production from the Yanacocha mines set to decline sharply in 2016 after a steady decline in production levels over the past few years. The mining of lower grade ores at Yanacocha has also negatively impacted the division’s margins. However, the ramp up of operations at the Merian mine (which is expected to average between 400,000 to 500,000 ounces of gold in the first five years of production) will not only boost production at the South American gold mining operations by around 40% next year, the mining of high grade ores at the mine will also lower unit costs for the division as a whole and boost margins.
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