Newmont Corporation has announced it will delay the full-funds investment decision for the Yanacocha Sulfides project in Peru to the second half of 2024. To complement this announcement, Newmont has appointed Dean Gehring as Chief Development Officer - Peru to lead the Company's Yanacocha operations and the Sulfides project.
The Company has completed an extensive review of the Yanacocha Sulfides project scope and schedule and revised the project timeline. As part of its review, Newmont considered the unprecedented and evolving market conditions, including the continued war in Ukraine, record inflation rates, the rising prices for commodities and raw materials, prolonged supply chain disruptions and competitive labor markets.
As Chief Development Officer - Peru, Dean will lead Newmont's Yanacocha operations and Yanacocha Sulfides project. A 30-year mining industry veteran, Dean brings extensive global leadership experience to the role, having previously managed operations and projects in the United States, Canada, Indonesia, Suriname and Peru, including as the head of Newmont's South America region. Most recently, Dean served as Newmont's Executive Vice President and Chief Technology Officer, integrating teams and systems across the global enterprise during a pivotal period following the acquisition of Goldcorp and throughout the COVID-19 pandemic.
"Newmont has a long history of operating in Peru, and Yanacocha is an important part of Newmont's world-class portfolio and long-term strategy. Dean brings a breadth of experience in successfully operating in this important region, and a proven capability in building and leading teams to successfully deliver results in complex operating environments," said Tom Palmer, Newmont President and Chief Executive Officer. "Dean is uniquely qualified to ensure operational excellence while working closely with government stakeholders, business partners and local communities to manage the development of this project in the current global economic context."
Newmont will continue to manage the Yanacocha operations responsibly while also finding opportunities to enhance operations, including the construction of two water treatment plants, with an anticipated initial spend of around $350 million over the next two years.
Ahead of the full-funds investment decision for the Sulfides project, Newmont will continue advanced engineering and long-lead procurement activities to de-risk the project seeking a profitable and predictable path forward. Following the investment decision anticipated in the second half of 2024, the project is expected to be developed over a three-year period, adding average annual production of approximately 525,000 gold equivalent ounces per year for the first five years of operation.