Newmont Targets Five Million-Ounce Expansion at Lihir Gold Mine

Lihir mine, in Papua New Guinea’s New Ireland Province. (Image courtesy of Newmont.)

The world’s largest gold producer, Newmont, is positioning its Lihir Gold Mine in Papua New Guinea for a major production expansion, with plans expected to unlock more than five million ounces of additional gold from 2028. The announcement comes as the company reported record quarterly free cash flow and reaffirmed its production guidance for 2026, highlighting the continued importance of strategic investments in high-quality mining assets.

During the second quarter of 2026, Newmont produced 1.3 million ounces of gold, 17,000 tonnes of copper and seven million ounces of silver. Strong operational performance generated cash flow from operations of US$2.9 billion after working capital adjustments, while free cash flow reached a record US$2.2 billion.

Chief Executive Officer Natascha Viljoen said the company remains firmly on track to achieve its full-year production targets, supported by stable operations across its global portfolio.

A key driver of Newmont’s future growth strategy is the construction of a nearshore barrier at the Lihir Gold Mine. Once completed, the project is expected to unlock more than five million ounces of additional gold reserves, significantly extending the life of one of the company’s flagship operations.

Viljoen said operational improvements at Lihir have already delivered better mining stability, improved equipment reliability and lower operating costs, providing confidence that the expansion project will create substantial long-term value.

Beyond Papua New Guinea, Newmont continues advancing several major development projects. The Red Chris underground block cave project in Canada is progressing towards a final investment decision after receiving key regulatory approvals. In Australia, production has resumed at the Cadia operation following an earlier seismic event, with the company confirming there will be no impact on annual production guidance.

Other long-term growth projects include Ahafo North in Ghana, Cerro Negro in Argentina, Tanami and Boddington in Australia, all of which are expected to strengthen Newmont’s production profile over the coming decade.

Chief Financial Officer Brian Tabolt reported adjusted EBITDA of US$3.8 billion and adjusted net income of US$2.10 per share, supported by an average realised gold price of US$4,414 per ounce. Gold all-in sustaining costs averaged US$1,621 per ounce during the quarter, below the company’s full-year guidance of US$1,680 per ounce, although higher sustaining capital expenditure is expected during the third quarter.

Newmont also continued rewarding shareholders, returning approximately US$1.9 billion through dividends and share buybacks since its previous earnings announcement. The company has now repurchased more than 100 million shares since launching its buyback programme just over two years ago.

Despite the strong financial performance, investors continue to monitor rising project costs, inflationary pressures and regulatory developments across key mining jurisdictions. Executives acknowledged that development costs at Red Chris are expected to exceed earlier estimates inherited from Newcrest, while discussions with Barrick regarding Nevada Gold Mines remain ongoing.

With gold prices remaining historically strong and demand for safe-haven assets continuing, Newmont’s investment in expanding the Lihir Gold Mine demonstrates the company’s commitment to growing production while improving operational efficiency. The planned five-million-ounce expansion is expected to reinforce Lihir’s position as one of the world’s premier gold mining operations and support Newmont’s long-term strategy of delivering sustainable returns through disciplined investment and responsible resource development.