According to The Australian Financial Review today, the board of US company Newmont Mining approved extra works on the Boddington mine in Western Australia.
Newmont is set to spend $400 million conducting a "cutback" at Boddington which will expand the mine and add several years of life to the operation.
The decision is a triumph for local management who have dramatically improved productivity at the mine in recent years, particularly in areas like shovel utilisation and truck idle times.
Boddington produced 739,000 ounces of gold in the year to June 30, 2015, well ahead of Kalgoorlie's Superpit, which was Australia's second biggest gold mine with 606,000 ounces produced during the last financial year.
Boddington is expected to produce gold this year at an all-in sustaining cost of $US820 per ounce, giving it profit margins of about $US350 per ounce at current gold prices.
The new expansion at Boddington, which Newmont has not publicised, is a welcome investment from the gold giant, but the move continues the huge flow of money into the Australian gold sector over recent months, which has delivered extraordinary share price gains for ASX listed gold miners.
Newcrest Mining is the largest gold miner on the ASX by market capitalisation and has seen its shares rise 55 per cent over the past year, while shares in ambitious mid-tier rivals Evolution and Northern Star have both risen by 250 per cent over the same period.
Gold was fetching $US1177 per ounce over the weekend.
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