Newmont Starts Up Boddington Gold Mine, Slight Delay

Newmont Mining Corp. (NEM) has started up its Boddington gold mine in Western Australia with a slight delay due to wet weather and falling workers' productivity, the world's second largest gold miner said in its second quarter results Friday.

"(The) planned startup is continuing, despite being adversely affected by wet weather and a recent decline in contracted workforce productivity associated with the industrywide economic slowdown," Newmont said in a statement.

At full production, Boddington, about 130 kilometers southeast of Perth, will be Australia's largest gold mine, and ramp up is expected to take 12 months. Eventual capital costs are expected around US$2.6 billion to US$2.9 billion.

The mine will produce around 1 million troy ounces during its first five years of operation at average cash costs of US$300/oz including byproduct credits.

In June, Newmont bought the remaining 33.33% interest in the project it didn't already own from AngloGold Ashanti Ltd. for about US$1.1 billion.

-By Elisabeth Behrmann, Dow Jones Newswires;

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