Newmont Mining Corp. announced it has completed the Tanami Power Project in Australia safely and on schedule. The project included the installation of two power stations, a 66-kV interconnected power line, and a 275-mile (450km) natural gas pipeline. The pipeline was built and will be maintained by Australian Gas Infrastructure Group, while the power stations were constructed and will be operated by Zenith Energy. Capital costs are estimated at approximately $245 million with annual cash lease payments over a 10-year term beginning in 2019.

Newmont said the project will provide the Tanami gold mine a safe and reliable energy source while lowering power costs and carbon emission by 20%. The project is expected to generate net cash savings of $34 per ounce from 2019 to 2023, delivering an Internal Rate of Return of greater than 50%.

“In addition to lowering costs and carbon emissions, the completed Tanami Power Project will pave the way to further extend the life of the operation,” CEO Gary Goldberg said.

He added that the completion of the project coincided with Tanami pouring its 10 millionth ounce of gold and record production of 500,000 ounces last year.

Tanami is Australia’s second largest underground gold mine and exploration success has created the potential to extend mine life beyond 2028.