Newmont (TSX: NGT; NYSE: NEM), the world’s largest gold producer, has resumed operations at its Cerro Negro mine in Argentina, after a six-week suspension following the death of two workers.
“The return-to-operations plan has been reviewed by governmental authorities,” Marcelo Campos, general mine manager, said in a statement. The executive said the approval reflects Newmont’s commitment to security and operational excellence.
Provincial suppliers and services chamber Capromisa had voiced their concerns about the effects a prolonged suspension would have on small and medium-sized enterprises and service providers.
Capromisa asked the authorities to expedite the investigation into the deaths and accelerate the administrative processes to allow the resumption of operations.
The gold mine, located in the southern Argentinian province of Santa Cruz, is one of Newmont’s key operations in South America, generating over US$500 million in exports per year.
Cerro Negro is undergoing a US$540-million expansion project that would extend its life until 2034, with total production expected to reach over 350,000 oz. from 2024 onwards. The mine is expected to churn out 290,000 oz. of gold this year.
The extensive Cerro Negro complex has three high-grade underground operating mines: Eureka, Mariana Central and Mariana Norte; as well as the underground deposits Emilia and San Marcos that are being developed.
The asset also contains five other deposits in late-stage evaluation for development to expand the existing operations in the Marianas Complex and establish operations in the Eastern District.
Newmont shares were up 1.2% to $57.38 on Friday, valuing the company at $48.4 billion. Its shares traded in a 52-week range of $39.96 and $60.50.
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