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Watch gold rise this year, says Newmont boss
From: The Australian February 04, 2010 12:00AM
THE gold price could rise to $US1350 an ounce this year from about $US1102 an ounce at the moment, Newmont president Richard O'Brien says.
"We see gold this year somewhere between $US1100 and $US1250, maybe $US1350," he said at the opening of the company's huge Boddington gold mine, 130km south-east of Perth.
"We will see continued support for the gold price. . . . No country can print more of it (unlike money), so no country can dilute the value of gold."
The gold price in Sydney on Tuesday closed at $US1114.82 per fine ounce.
The US-based giant considers Boddington a cornerstone asset, he said. "For a company that has been in business for 89 years, this is still a big deal."
The $3 billion operation is set to surpass Kalgoorlie's famous Super Pit as the nation's largest goldmine, producing one million ounces of the precious metal a year in its first five years of operation and 850,000 ounces a year after that.
The Newmont/Barrick-owned Super Pit, by comparison, produces 850,000 ounces a year and is being extended to have a mine life until 2021.
Mr O'Brien said Newmont hoped to extend Boddington's mine life beyond 2034 through exploration.
The mine should ramp up to a rate of 1 million tonnes per annum in the second half of this year.
West Australian Premier Colin Barnett, who attended its opening, said Boddington would boost the state's gold output by 20 per cent.
Boddington shire president Paul Carrots said the reopening of the mine, which was Australia's largest gold producer between 1989 and 1991, could see the town's population double in coming years.
AAP
hard O'Brien says.
"We see gold this year somewhere between $US1100 and $US1250, maybe $US1350," he said at the opening of the company's huge Boddington gold mine, 130km south-east of Perth.
"We will see continued support for the gold price. . . . No country can print more of it (unlike money), so no country can dilute the value of gold."
The gold price in Sydney on Tuesday closed at $US1114.82 per fine ounce.
The US-based giant considers Boddington a cornerstone asset, he said. "For a company that has been in business for 89 years, this is still a big deal."
The $3 billion operation is set to surpass Kalgoorlie's famous Super Pit as the nation's largest goldmine, producing one million ounces of the precious metal a year in its first five years of operation and 850,000 ounces a year after that.
owned Super Pit, by comparison, produces 850,000 ounces a year and is being extended to have a mine life until 2021.
Mr O'Brien said Newmont hoped to extend Boddington's mine life beyond 2034 through exploration.
The mine should ramp up to a rate of 1 million tonnes per annum in the second half of this year.
West Australian Premier Colin Barnett, who attended its opening, said Boddington would boost the state's gold output by 20 per cent.
Boddington shire president Paul Carrots said the reopening of the mine, which was Australia's largest gold producer between 1989 and 1991, could see the town's population double in coming years.
AAP
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