Newmont’s Tanami gold mine expansion set for 2027 finish

The $2.7bn expansion at the Northern Territory’s largest mine is on track for completion despite a thrashing by a cyclone earlier this year. Find out when.

Works on the massive Newmont Tanami gold mine life extension are 40 per cent complete, with more than a billion dollars expected to be spent on the project over the next three years.

Mine general manager Justin de Meillon said the tier one gold mine life extension avoided serious disruption during the massive weather events triggered by Tropical Cyclone Megan that sent shockwaves through the sector in the NT last month.

Work on the A$2.7bn TE2 upgrade began in 2021 and its completion date has blown-out from 2024 to potentially 2027.

The life-extension project involves construction of a head frame and vertical hoisting shaft to a depth of almost 1.5km to be used to transport people and ore up and down the mine.

TE2 will mean expanded production of between 150 and 200 thousand ounces of additional gold each year and increase life-of-mine to beyond 2038.

Tanami gold mine is in the Tanami Desert .(Supplied: Newmont Australia)

It will also increase production at the underground mine from 2.6m tonnes of ore per annum to 3.2m tonnes.

He said access along the 600km stretch of the Tanami Highway linking the mine with Alice Springs was lost on March 4, with limited access resuming recently ahead of the full road reopening expected next week.

He said he was looking forward to the NT Government completing works that will fully seal the road between Alice Springs and the mine by next year.

Mr de Meillon said this was the second consecutive year of whopping rainfalls that had a direct impact on the Tanami mine.

“Last year was bad too,” Mr de Meillon said, reflecting on 2024 rainfall.

“Then we had a lot more rain around the operation and it was sustained for a longer period.

“The rain this year was quite incredible. Rabbit Flats, which is the closest weather station, recorded 637mm in March, equivalent to all of last year.

“The rain had minimal disruption on our operation because we were prepared for it, but we were forced to slow down during the past couple of weeks because we had run out of bulk supplies like cement and spare parts.

Newmont Tanami.

“The road is partially open at the moment and expect it to be fully open next week.”

Glencore’s McAarthur River Mine was disrupted by storm damage and South32’s Groote Eylandt mine has still not resumed operations after a bulk carrier smashed into a loading jetty.

Mr de Meillon said while Newmont’s focus is on the expansion, it is continuing to explore prospects at its Oberon deposit, about 40km north of the Tanami.

“We have a team currently working out there and have been drilling there for the past two years,” he said.

“The exploration camp is out there and we’ll be trying to convert to reserves in the next couple of years.”

The Tanami gold mine is the Territory’s largest resource asset, contributing $150m to NT coffers in royalties and taxes and significant land use payments to local Warlpiri traditional owners.

Last year Granites Mine Affected Area Aboriginal Corporation earnt income in excess of $36m, with accumulated funds totalling more than $220m.

“In addition to the royalties we pay, Newmont is a good corporate citizen,” Mr de Meillon said.

“We’re strongly engaged in our four local communities and we distribute $250,000 each year in community grants.

“We support cultural events and through the South Australian museum we’re funding a three-year project to digitise Australia’s largest collection of artefacts and cultural dance festivals.”