June 21, 2024

Australia’s Largest Gold Company Seeks to Expand West African Output

According to their recent statements, Newcrest Mining Ltd. is working to double gold production at their Bonikro mine on the Ivory Coast.

Newcrest is an Australian based company, whose operations extend to Papua New Guinea and Indonesia. Following a merger with Lihir Gold completed in August 2010, they became the world’s fifth largest gold producer, in addition to being the largest producer within Australia.

It was through the company’s takeover of Lihir Gold that they acquired their West African mine Bonriko. The mine produced 150,023 ounces of gold in 2009, but it will have to do better than that in the future to justify the company’s interests on the African continent.

Bonriko’s Promise

Geoff Day, chief operating officer-offshore for the Melbourne-based company, told reporters that West Africa has a history of high level gold production. He believes that that history supports the company’s plans for the mine.

“Ideally, and this is not written in stone, if we’re going to have a presence in Africa, we’d be looking for something bigger. You’d have to think it would be in the order of 300,000-500,000 ounces. That would be something where you can say you can support a country presence.”

Newcrest’s Plan

Newcrest Mining forecasts that their gold production will continue to increase. By 2014, they target a gold output of 3.75 million ounces, achieved through an annual increase of 8.2% from existing mines and projects.

Today their share price closed at A$40.24, down .44 for the day. Newcrest Mining Ltd (NCM:AU) has ranged from a 52 week low of A$29.73 to a 52-week high of A$43.71.