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Thursday, 24th May 2007 (3639 views)

Two Australian gold mining operations could witness job losses in the near future, as gold producer Newmont Mining seeks to cut costs.

According to Australian Associated Press (AAP), the world's second biggest producer of gold will make changes to its mines in Jundee, in Western Australia, and Tanami, in the Northern Territory.

Russell Clark, regional group executive of Australia and Asia operation, informed Paydirt gold conference delegates that Newmont was conscious of "rising costs" and "skill shortages", leading to the decision to combining two milling operations at Jundee to "eliminate a bunch of fixed costs".

He asserted that production would not be impacted by such a move.

AAP also reports a re-structuring at the Tanami mine, where mining is now required at greater depths.

As a result, plans involve building a haulage shaft as well as erecting a processing plant next to the mine to cut production costs.

In 2006, Newmont produced in the region of 5.9 million ounces of gold across the world.

 

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