Newmont (TSX: NGT; NYSE: NEM) has cut full-year production guidance for its Boddington gold mine in Western Australia by 140,000 ounces below the originally set target of 830,000 ounces.
The announcement comes as Newmont delivered the gold industry's first Autonomous Haulage System (AHS) fleet at the operation, comprised of 36 trucks, with a total investment of US$150 million.
The company said it faced several challenges during the commissioning of Boddington's autonomous haulage system. The issues included unusually severe weather and heavy rainfall, shovel reliability and operational delays associated with managing bench hygiene as mining moves into deeper sections of the pit.
As the result of a combination of factors, Boddington has delivered lower ex-pit tonnes than expected, Newmont says.
"The record implementation of this project is a tremendous example of Newmont's trademark ability to set and achieve ambitious goals," president and CEO Tom Palmer said in a media statement. "Today's AHS commissioning is (...) an important milestone for the company and the industry as a whole."
The mine, Western Australia's largest gold producer, yielded 670,000 ounces of gold and 56 million pounds of copper last year.