Government backs Tanami

The Northern Territory Government is showcasing resource development opportunities at the Tanami gold mine, delivering jobs, investment and royalties for locals.

The site, acquired by Newmont (ASX: NEM) in 2002, is located 550km northwest of Alice Springs and currently employs more than 1,800 people.

The Tanami Expansion 2 (TE2) project is well underway and is anticipated to transform the site’s production capabilities and extend its operational life well beyond 2040.

In the current climate of record high gold prices, the mine is set to deliver significant royalty revenue to the Northern Territory economy.

Northern Territory Mining and Energy Minister Gerard Maley visited the site this week and travelled 1.3km underground to inspect operations, including the new ore crusher and the progress of the key TE2 project.

“The Tanami mine is a powerhouse of gold production and a major economic driver for the Territory,” he said.

“With expansion works well underway and record commodity prices, this project represents long-term jobs, royalties and investment for the Territory, exactly what our government is focused on delivering in our year of action, certainty and security.”

“Our mining sector continues to lead the way in rebuilding the Territory economy, and the Tanami operation stands as proof of the opportunities that exist when government and industry work together.”

The expansion project will see the construction of a 1.5km deep production shaft and is expected to reduce operating costs by 10% and increase annual gold production by 150,000-200,000oz.

Commercial production at the site is expected to commence later this year with total capital costs between $1.2-$1.3b.