Newmont Provides Update on Boddington Mine

Rhea-AI Summary

Newmont has launched the first autonomous haulage system fleet in the gold industry at its Boddington mine in Western Australia. The transition involves 36 autonomous trucks, backed by a $150 million investment. This innovation aims to enhance safety and operational efficiency.

However, the project has impacted short-term gold production, with an expected output of 140,000 ounces below previous estimates for 2021 due to operational challenges faced during commissioning.

Positive

• Introduction of the first autonomous haulage fleet in the gold industry.
• Investment of $150 million aimed at improving efficiency and safety.
• Enhancements in productivity expected to extend mine life.

Negative

• Short-term gold production impacted, with a decrease of 140,000 ounces from initial guidance of 830,000 ounces due to operational challenges.

Western Australia’s Largest Gold Mine is Now Industry’s First to Have Fully Operational, Autonomous Haulage Fleet; Trucks Commissioned in Record Time 

Newmont Has Invested $150 Million in Autonomous Haulage Project Short-Term Impact on Boddington’s Expected Gold Production of Approximately 140,000 Ounces for 2021, as Autonomous Fleet Is Fully Ramped Up

DENVER--(BUSINESS WIRE)-- Today, Newmont Corporation (NYSE: NEM, TSX: NGT) delivered the gold industry’s first Autonomous Haulage System (AHS) fleet at Boddington, Western Australia’s largest gold mine. With the transition to a fully autonomous haulage fleet of 36 trucks, the Company will improve mine safety and productivity, while extending mine life.

“Newmont is proud to deliver the gold industry’s first autonomous haul truck fleet at Boddington, an important milestone for the Company and the industry as a whole,” said Newmont President and CEO Tom Palmer. “Delivering this project on time and on budget during a global pandemic is an enormous accomplishment. I am grateful for our team and our partners at Caterpillar for their ongoing dedication and drive. The scale and long life of our operations enables Newmont to implement leading technologies to promote both safety and productivity. We look forward to leveraging this project and our commissioning experience at our other operations and projects around the globe.”

Boddington is Western Australia’s largest gold producer, delivering 670,000 ounces and 56 million pounds of copper in 2020.

Newmont has invested $150 million in Boddington’s AHS project which will create a safer, more efficient mine. Following completion of the industry’s fastest AHS commissioning program, Boddington continues to ramp up the truck fleet to full productivity as the site fine tunes the technology for operation in a deep open pit mine.

During commissioning the project faced several challenges, including unusually severe weather and heavy rainfall, shovel reliability and operational delays associated with managing bench hygiene as mining moves into deeper sections of the pit. As a result, Boddington delivered lower ex-pit tons than expected, with full-year 2021 gold production anticipated to be approximately 140 thousand ounces below original guidance estimates of 830 thousand ounces.

“The record implementation of this project is a tremendous example of Newmont’s trademark ability to set and achieve ambitious goals. Throughout our 100-year history, our industry-leading position has been built on deep operational knowledge and technical expertise. Today’s AHS commissioning is another moment to add to our proud history of achievements,” said Mr. Palmer.

About Newmont

Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution and technical expertise. Newmont was founded in 1921 and has been publicly traded since 1925.

Cautionary Statement: This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation: expectations of future production and operating results at Boddington (including full-year 2021 guidance estimates and related impacts), expectations regarding AHS related improvements to mine safety and productivity, expectations regarding mine life, expectations regarding future improvements and implementation of technologies at other sites, expectations regarding ability to reach higher grades and associated timing, and expectations regarding future program efficiencies and impacts on production. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions include, but are not limited to: (i) there being no significant change to expected geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations being consistent with current expectations and mine plans; (iii) certain price assumptions for gold, copper and oil; (iv) prices for key supplies being approximately consistent with current expectations; (v) the accuracy of our current mineral reserve and resource estimates; and (vi) other assumptions. Other risks relating to forward-looking statements include, without limitation, community relations risks, governmental regulation, political and judicial outcomes, and impacts of Covid-19, variations of Covid and related restrictions. For a more detailed discussion of such risks and other factors, see the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ending December 31, 2020 and the Quarterly Report on Form 10-Q for the quarter ending June 30, 2021, both of which are filed with the Securities and Exchange Commission (SEC), and available at www.newmont.com , as well as the Company’s other SEC filings. The Company does not undertake any obligation to publicly release revisions to any “forward-looking statement” to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors' own risk.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211005005458/en/

Media Contact

Courtney Boone

303.837.5159

courtney.boone@newmont.com

Investor Contact

Daniel Horton

303.837.5468

daniel.horton@newmont.com

Source: Newmont Corporation

FAQ

What is Newmont's latest investment in autonomous technology?

Newmont has invested $150 million in the Autonomous Haulage System at Boddington, aiming to improve safety and productivity.

How will the autonomous fleet impact gold production at Newmont's Boddington mine?

The fleet's commissioning is expected to result in a short-term decrease of approximately 140,000 ounces in gold production for 2021.

What is the expected production output for Newmont in 2021?

Newmont anticipates a total gold production of around 690,000 ounces for 2021 instead of the originally estimated 830,000 ounces.

How many trucks are included in Newmont's autonomous fleet?

The autonomous fleet at Boddington consists of 36 trucks.

What challenges did Newmont face during the commissioning of its autonomous fleet?

Challenges included severe weather, shovel reliability issues, and operational delays.