Reuters reported that Newmont Mining Corporation Q3 gold production fell 6% and it said it faced a record USD 77 million in maintenance and restructuring charges.

Newmont cited lower mill availability and recoveries at Boddington in Western Australia and lower ore tons and grade mined at Tanami in northern Australia as reasons for lower productivity. Gold production was 1.24 million ounces down 5.3% from 1.31 million ounces in the same quarter last year.

Newmont said that it is expecting USD 27 million charge for the Hope Bay project in Canada and a charge of about USD 50 million for restructuring, severance and related costs during the quarter.

Gold miners are facing difficulties in negotiating with workers over wages and jobs leading to a series of strikes and general labor unrest in the mining industry. Though the price of gold has more than quintupled in the last decade, from about USD 300 an ounce in 2002 to over USD 1,700, labor and material costs have skyrocketed along with metal prices.

Rising costs have weighed on the share prices of gold miners, most of whom have lost value this year even though spot gold is still well above historic levels.

In January, Newmont Mining said was evaluating development options and the feasibility of its Hope Bay project in Northern Canada and set aside maintenance funding for the site. The project was not included as part of the Company's 2017 strategic growth plan.

Source – Reuters

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