Flood and pandemic not enough to stop Newmont’s Tanami expansion

Despite a tough couple of years, Newmont’s Tanami mine is continuing at pace. Read how it will benefit the Territory.

Newmont Tanami’s mine expansion is continuing despite a succession of setbacks that have impacted the project.

The coronavirus pandemic hit the industry worldwide and it forced Tanami workers into two weeks of lockdown in 2021.

Earlier this year, roads in and out of the mine were closed for two months when Tanami was hit with an unprecedented downpour and flooding.

Announced in 2021, Tanami Expansion 2 (TE2) involves the construction of a headframe and vertical hoisting shaft to a depth of almost 1.5km for transporting people and ore.

Due for completion in late 2024 or early the following year, the works are expected to expand the mine’s gold production by between 150,000 and 200,000 ounces a year (it produced 484,000 ounces in 2022) and extend the mine’s life to 2040.

Newmont's Tanami mine.

Newmont regional senior vice president Mia Gous said the biggest challenge during the floods was keeping the mine team safe.

“The roads were basically closed for two months, which is obviously challenging but we know it’s a risk and we were prepared for it,” Ms Gous said.

“We have materials and supplies on site because we know it can happen but we did have to operate at a bit of a lower rate.

“We came out of it with the help of the NT government and Department of Infrastructure, Planning and Logistics’ assistance getting the roads repaired and open again, which was a massive contribution.

“The floods have not had a massive impact on the total year but it puts a bit of pressure on the second, third and fourth quarters.”

Floodwaters blocked the Tanami Road earlier this year.

About 540km north-west of Alice Springs, Newmont last year paid $US94m in royalties to the NT government, among the biggest single contributors to the NT’s coffers, as well as US$269m corporate tax to the commonwealth.

With an onsite workforce of almost 800 and directly responsible for another 1000 jobs across the Territory, it’s also one of the largest contributors to employment.

Ms Gous said the TE2 project was giving opportunities to Territory workers in the specialist area of raise boring, in this case a 1.5km shaft that was completed last September and currently being concrete-lined.

She described the project as “complex”, involving drilling and concrete-lining of a 5.4m diameter shaft over 1500m.

Newmont's Tanami mine expansion by air.

“This is an opportunity for people in the Northern Territory to get expertise in deep shaft mining operations,” Ms Gous said.

“It’s actually a rare opportunity for people in the NT to learn these skills.”

As well as Tanami, Colorado-based Newmont owns the Boddington mine in WA, Australia’s largest gold mine, and local employment is a priority at both sites.

Currently about 40 per cent of employees are from the NT but the figure is limited only by available talent.

“Our priority is to employ people from the Northern Territory and to be a responsible employer for the Territory,” Ms Gous said.

“We’d love to support the community all the way from Darwin to Tanami and beyond to maximise local employment and skills development.

“Finding skills inside the Territory can be challenging but one fundamental will not change – that we will always be committed to Northern Territory.”

Ms Gous said Newmont was “proud” to be getting good test results at exploration sites around the Tanami and the Oberon deposit near the Tanami could be the next NT gold project. “We’re still doing a lot of prospecting over the whole of the NT,” she said.

Originally published as Flood and pandemic not enough to stop Newmont’s Tanami expansion