Newmont Seeks To Extend Largest Australian Mine Until 2050

Leading gold miner Newmont (NYSE:NEM) has applied to extend the permit for its Cadia operation, Australia's largest underground mine, until 2050.

Located near Orange in New South Wales (NSW), Cadia plays a significant role in Newmont's portfolio and the Australian mining sector. It produces nearly 600,000 ounces of gold and a large share of the country's copper.

Per Central Western Daily, extending Cadia's operations would generate significant regional benefits, providing over 2,100 full-time jobs and helping hundreds of regional suppliers. The mine's economic contribution is substantial, as the company spends around $135 million annually on employee salaries.

"The extension of Cadia's operations would be a tangible boost for responsible mining that contributes to global net zero goals, local jobs, and economic growth," said Suzy Retallack, Newmont's Chief Sustainability Officer.

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The NSW Department of Planning, Housing, and Infrastructure will assess the application submitted under the federal Environment Protection and Biodiversity Conservation Act on behalf of the federal government.

Already deemed a state-significant project, Cadia's extension aligns with state and federal priorities for regional economic stability.

The mine recently earned recognition for sustainable production, receiving the Copper Mark and the Molybdenum Mark.

"Our global customers can now choose to source copper concentrate from an independently evaluated mine that meets the highest standards in environmental, social, and governance practices, responding to the increasing demand for sustainable supply chains," Retallack said in an announcement.

Cadia is currently Australia's only operating source of molybdenum, a critical mineral used to strengthen steel without adding excessive weight. The $85 million processing plant can produce around 4.1 million pounds annually.

Newmont's commitment to Cadia reflects its strategic focus on Tier 1 assets. After the industry-shaking merger with Newcrest (whose flagship asset was Cadia), CEO Tom Palmer announced the company would divest from non-strategic operations.

A recent sale of the Akyem operation in Ghana to Zijin Mining is expected to generate approximately $1 billion, helping reduce debt and support core asset capital expenditures.

Newmont's stock is 14.74% up year-to-date, significantly lagging gold – one of the best assets of the year. SPDR Gold Trust (NYSE:GLD) is up 34% year-to-date.

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