DENVER--(BUSINESS WIRE)--Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) announced today that its Board of Directors unanimously approved investment in an Autonomous Haulage System (AHS) at Boddington in Australia to enhance safety and productivity, while also extending mine life. Once fully operational in 2021, Boddington will be the world’s first open pit gold mine with an autonomous haul truck fleet.
“Not only does Boddington continue to deliver strong performance, our investment in autonomous haul trucks will generate an internal rate of return greater than 35 percent with a more controlled and efficient haulage operation,” said Tom Palmer, President and Chief Executive Officer. “We are also uniquely positioned in the gold sector to support effective implementation and operation of the fleet thanks to the technical capabilities and previous experience of leaders in our business. Simply put, Boddington will be a safer, more productive world-class gold mine in a top-tier jurisdiction.”
Total net investment in Boddington’s AHS will be $150 million, with efficiencies expected to extend the mine’s life by at least two years. The Company also sees additional upside potential from the replication of the AHS at other Newmont operations.
Boddington’s autonomous Caterpillar haul trucks will feature rigorous safety controls that reduce employee exposure to potential vehicle interactions. No injuries have been recorded from AHS operations since their introduction into the mining industry. Newmont is also executing a robust people strategy at Boddington, providing opportunities for reskilling and redeployment of haul truck drivers to other roles supporting the AHS.
Boddington is Western Australia’s largest gold producer, delivering 709,000 ounces of gold and 77 million pounds of copper in 2018. The mine directly employs approximately 2,000 people and is located 135 kilometers southeast of Perth in Western Australia.
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 proficiency. Newmont was founded in 1921 and has been publicly traded since 1925.
Cautionary Statement Regarding Forward Looking Statements:
This release may contain “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, estimates and expectations of future performance, safety results, productivity improvement, upside potential, mine life extension, timing of completion of implementation and improvement to internal rate of return. 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, such statements are subject to risks, uncertainties, assumptions and other factors, which could cause actual results to differ materially from future results expressed or implied by the “forward-looking statements.” For a more detailed discussion of risks and other factors that might impact future looking statements, see the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 under the heading “Risk Factors,” filed with the U.S. Securities and Exchange Commission (the “SEC”) and available on the SEC website or www.newmont.com, as well as the Company’s other SEC filings. Investors are also encouraged to refer to the Company’s 2019 Form 10-K, which is expected to be filed on or about February 20, 2020, with the SEC under the headings “Risk Factors” and “Forward-Looking Statements” for additional information. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, 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.