Newmont opens Merian Mine in Suriname on time and under budget

"There are few people more qualified to speak of the tumultuous times in the global mining industry during the past four years than Newmont Mining Corp. president and chief executive officer Gary Goldberg.Goldberg stepped into his current position in 2012, just before MINExpo 2012. Gold prices had hit record highs not long before that ($54.15/g or $1,856.40/oz on Sept. 8, 2011), expansions were happening around the world and the gold mining sector was still living in the glow of one of its longest upswings in history.That all changed between April 8 and April 15, 2013 when the price of gold dropped by nearly $200/oz ($46.27/g or $1,586.20/oz on April 8 to $40.45/g or $1,386.80/oz on April 15), putting an end to the decade-long mining boom and forcing mining companies like Newmont to re-evaluateeverything.Three years later, with the gold sector recovering, Newmont Mining is not only surviving but is thriving with a pair of mines coming online, Long Canyon in Nevada and Merian in Suriname. On Oct. 1, the Merian Mine went into production on time and more than $150 million under the initial development capital budget.Goldberg, who was one of the featured speakers at the opening session of MINExpo International 2016 on Sept. 26, also spoke with Mining Engineering about the previous four years and the future of the industry.“Mining goes through cycles all the time and gold is no different,” Goldberg told Mining Engineering when asked about surviving the downturn since 2012. “I thought it was important that we take a good methodical and steady approach across the business to determine what was the right thing to do and to set the business up to improve performance. Anyone can cut costs for the short term, but we set out to do it in a sustainable and reliable way. We created a program we call Full Potential to look for sustainable ways to reduce costs and improve productivity. That program has taken more than a billion dollars out of our costs since we implemented it 2013 and that shows up in our results. Our all in sustaining costs are down 28 percent and our productivity is up 39 percent.”During the downturn, Newmont restructured its business model, sold off some assets and created a leaner, more nimble operation. It has paid off with the addition of two new mines and the acquisition of another, the Cripple Creek & Victor Mine in Cripple Creek, CO.“The gold industry had not seen a downturn in 12 years. We had half a generation that had not experienced a downturn, so helping them through that in an organized way and keeping a view toward the long term throughout the downturn was important. We were one of the few companies that continued to invest in assets,” he said."