Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Newmont (NYSE: NEM) said on Thursday its board approved full funding to advance its Ahafo North Project in Ghana into the execution phase.
The project, located 30 kilometers north of the company’s existing Ahafo South operations, will add more than three million ounces of gold production over an initial 13-year mine life, the company said.
The top gold producer estimated capital costs to be between $750 million and $850 million, with construction expected to be completed in the second half of 2023.
Production from the mine will average about 275,000 to 325,000 gold ounces with all-in sustaining costs of $600 to $700 per ounce for the first five years, Newmont said.
Commercial production at Ahafo began in 2006, which has two primary ore zones, Ahafo South and Ahafo North.
(By Sahil Shaw; Editing by Sriraj Kalluvila)
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