Newmont To Invest In Autonomous Haulage System At Boddington
Zacks Investment Research | Feb 24, 2020 08:55PM ET
Newmont Corporation’s (NYSE:NEM) board has recently given unanimous approval for the investment in an Autonomous Haulage System (AHS) at Boddington, Australia. The investment is expected to boost productivity and safety in addition to extending the mine’s life.
Newmont’s Boddington mine is expected to be fully operational in 2021. Once fully operational, it is expected to become the world’s first open-pit gold mine with an autonomous haul truck fleet. The company stated that a fleet of autonomous CAT 793F mining trucks will be fully operational in 2021 at the mine.
Newmont also stated that Boddington is delivering strong performance. The company’s investment in autonomous haul trucks is likely to generate an IRR of more than 35%. It will also have more controlled and efficient haulage operation.
The company expects net investment in Boddington’s AHS to be $150 million. Per Newmont, it is expected to extend the mine’s life by at least two years. Additionally, there is potential from the replication of the AHS at Newmont’s other operations.
Autonomous Caterpillar (NYSE:CAT) haul trucks at Boddington will feature rigorous safety controls. This will lower employee’s exposure to potential vehicle interactions, which will further minimize injury rates. Newmont is also providing opportunities to haul truck drivers for reskilling and redeployment to other roles that will support the AHS. Notably, Boddington is Western Australia’s largest gold producer. The mine directly employs around 2,000 people.
Newmont’s shares have surged 43.8% in the past year against the Original post
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