Newmont will invest $540 million to expand the Cerro Negro gold mine in Santa Cruz province, Argentina, extending its life to 2034. The investment is expected to increase its production to more than 350,000 ounces from 2024 and provide room for further exploration and further expansion.

The Cerro Negro Gold Mine consists of three underground operating mines, Eureka, Mariana Norte and Mariana Central. The business also includes two deposits currently under development, as well as five other deposits in late-stage evaluation development.

In 2022, exports from Argentine mines exceeded $500 million. In a statement, Newmont said it remains committed to expanding its Cerro Negro mining operations in Argentina and developing the Mariana Islands and the eastern region.

Future development capital costs, excluding projects it has already committed to, are estimated at $350 million and $450 million. Argentina's political turmoil has made it a difficult place to do business and is looking for ways to improve deposits and attract currency.

Last month, Newmont signed a binding plan execution deed to acquire Australian gold miner Newcrest Mining for an enterprise value of $19.26 billion. The agreement follows an exclusivity covenant between the two companies that allows Newmont to exclusively conduct confirmatory due diligence.Editor/XingWentao