Newmont could redirect Conga billions to Ghana if delays continue
Newmont Mining Corp. (NEM), world number two gold producer, said on Wednesday it has options to spend its capital elsewhere to meet production targets if its Conga project in Peru does not restart.
Dow Jones Newswires reports Ghana would be the focus of Newmont’s expansion to up gold production from 5.2 million ounces to 7 million ounces by 2017. The company already operates the Ahafo mine in the African country and is developing the Akyem project:
“We are working with local and regional government about accessing the water situation,” John Seaberg [head of investor relations] told Dow Jones Newswires on the sidelines of the Mining Indaba conference. But if the project is delayed for a very long period of time, “we do have other options in our portfolio…where we can redeploy our capital,” if needed.
Peru’s Prime Minister said in January the stalled Conga project will be developed as the government could end up with a “huge” compensation payment if the $4.8 billion mine does not go ahead.
Newmont stopped construction of the copper-gold project in November after violent protests in the poor Cajamarca region of northern Peru.
In January Peruvian officials also announced a programme of social and infrastructure investments in Cajamarca aimed at winning over local protesters, led by Cajamarca’s Maoist governor Gregorio Santos. The protesters say Conga will destroy the environment by transforming four high Andean lakes into reservoirs for mining operations.
Conga has gold deposits worth about $15 billion at current prices and would be the biggest investment ever in Peru mining.
{{ commodity.name }}
{{ post.title }}
{{ post.date }}
10 Comments
Frankie
Move it to Ghana I say. Peruvian protesters are misinformed for Politcal gain ! They are not thinking of themselves and their future. Good on you Newmont, move it to Africa !
Isaacteboho
move it to ghana and don’t waste any more time.we are ready and capable.
Kofi Kyei
Ghana is destined to be the future in Africa with a solid governance and man power, nothing to lose when one invest in Ghana, welcome to the heart of Gold, Newmont
Kojokmsn
Newmont, it’s very refreshing to read that you intend to invest further in Ghana to up your production. Newmont is always welcome in Ghana.
Etoffey
Ghana is investment policy is to attract more investment and create employment for the youth.
The government and stakeholders will support you to expand your investment and make more profit so that in the near future you can invest in Peru.So bring the money to Ghana for the expansion.Procastination is a thief of time
Kizito Diarra
The 2nd after RSA ;Ghana is known as a well organized country in mining industries.
Iwish all the best for the country
jimmyboy
The locals from Cajamarca are shooting themselves in the foot by letting Newmont slip through there fingers. Without Newmont, Cajamarca would revert back to the stone ages and there would never be an infrastructure to build from. Maybe its time that more inteligent people make the decisions about a countries future. Not stone age indians and environmental wackos.
Kdanieladdo
Newmont please send the money to Ghana for the planned expasion and your’e not gonna regret taking that step. May be Peru will learn some sense if they should lose this money for their stone age mentality.
Dan K
Alberto Enrique7
Sería una lastima si no se lleva a cabo este proyecto y hoy hacemos una marcha por el agua en medio de grandes lluvias y desbordamientos, cuyas aguas se van al mar sin ser utilizadas.Como pdríamos hacer para que entiendan que la técnologia ya supero estos problemas de aguas, sino miren a Holanda. como maneja hasta ahora el Mar del Norte.
Tal vez deberian tener menos politicos y más ingenieros experimentados.Yo haria dos maquetas ( replica en pequeño) y les explicaria como es hoy y el compromiso de como sería mañana, sin lagos pero con represas y canales para riego más modernos. recogiendo las aguas no solo de Cabezera de Cuenca sino en el intermedio. y las recuperaciones del Acuifero a lo largo de los valle más importantes
peruviancitizen
Lets face it!
Cajamarca´s people needs mining to improve his economic and health level.
The problem is keept “on the air” by NGO´s, like Arana ex-priest cary on as well as the media which earns money from the conflicts.
President Humala must solve this situation in a win -win mode.
Don´t allow the billions go to other Newmont worldwide operations.