(Reuters) – Newmont, the largest gold miner, said on Thursday it would delay the decision to invest in the $2 billion Yanacocha sulfide project in Peru’s second-largest gold producer until the second half of 2024.
The project is part of a planned expansion of the Yanacocha Gold Mine in Newmont to extend its life beyond 2040.
The company blamed market conditions for the delays, including “the ongoing war in Ukraine, record inflation, soaring commodity and raw materials prices, prolonged disruptions in the supply chain, and competitive labor markets.”
Following the investment decision, Newmont expects the project to take three years to develop, adding an average annual production of about 525,000 ounces of gold equivalent per year for the first five years of operation.
The world’s largest gold miner has also appointed Dean Gering as chief development officer for its Peru operations to lead the Yanacocha project.
The Denver-based company said it will continue to run Yanacocha’s operations, including the construction of two water treatment plants, with an expected initial spending of about $350 million over the next two years.