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Newmont production down, costs up

NNBW Staff

Newmont Mining Corp., the second-biggest gold producer in Nevada, said last week that its production in Nevada fell during the fourth quarter and the cost of producing an ounce of gold rose.

The company said it produced 667,000 ounces in the fourth quarter at a cost of $384 an ounce. A year earlier, it reported production of 887,000 ounces at a cost of $363 an ounce from its Nevada holdings.

The Denver-based company said production declined as older properties worked lower-grade ores and its Midas underground mine was closed for safety work after the death of a miner in mid-2007.

Newmont said it expects its production costs to fall by about $25 an ounce once it completes a 200-megawatt, coal-fired power plant in Eureka County. The plant, which is expected to cost between $620 million and $640 million, is projected come on-line by the middle of this year.