Gold Fields eyes Chile expansion as new $1bn mine starts up

Gold Fields hopes to expand its footprint in Chile, where its much delayed $1 billion Salares Norte mine will start production in December, acting CEO Martin Preece said on Thursday.
The Salares Norte project, which had been held back by Covid-19 and severe weather, is expected produce its first 1,000 ounces next month and 400,000-430,000 ounces in 2024, the Johannesburg-based miner said in a quarterly update.
The project is key to achieving Gold Fields’ aim of raising its output to about 2.8 million ounces by 2025 from some 2.3 million ounces currently.
“Our strategy in Chile right now is, we’re working very hard in the tenements we own around Salares,” Preece told Reuters in an interview, referring to exploration sites.
“That would be first prize, if we can find another ore body there, because we’ve put a billion dollars of steel on the ground that you could then use for a bit longer.”
Gold Fields has made a strategic investment in Australian exploration company Tesoro Gold, which owns the El Zorro gold project in Chile.
Preece said Gold Fields was also actively exploring for additional ounces in Peru, where the life of its Cerro Corona mine runs to 2030.
The company has also invested in Canadian exploration firm Chakana Copper Corp, which is advancing the Soledad copper-gold-silver project in Peru’s Ancash region.
Gold Fields hopes talks with Galiano Gold, its joint venture partner in Ghana’s Asanko mine, that would put the asset under the full control of either shareholder will be concluded by December, Preece said.
The company’s production was 542,000 ounces in the September quarter, down 9% year-on-year and 6% lower than the previous quarter, with the largest decline from 2022 in production volumes in Ghana.
The miner has maintained its 2023 production guidance at 2.25 million-2.30 million ounces despite operational problems which include skills shortages in Australia and South Africa, as well as lower grades in Peru and Ghana.
(By Nelson Banya and Felix Njini; Editing by Edmund Klamann and Jan Harvey)
More News
Ukraine rejects US bid for 50% of rare earth minerals, FT says
Zelenskiy wants US and European security guarantees to be tied directly to any deal on the mineral reserves, FT reports.
February 16, 2025 | 08:53 am
Jubilee Metals begins processing high-grade copper to recoup production
The milestone follows Jubilee's recent agreement to secure 200,000 tonnes of material with a copper content of around 1.6% for its Roan facility.
February 16, 2025 | 08:25 am
Over 40 people killed in Mali mine collapse
The accident took place near the town of Kenieba in Mali's gold-rich Kayes region.
February 16, 2025 | 08:22 am
Trump starts energy dominance drive with White House council
The new National Energy Dominance Council will be led by Interior Secretary Doug Burgum.
February 15, 2025 | 01:58 pm
{{ commodity.name }}
{{ post.title }}
{{ post.excerpt }}
{{ post.date }}
Comments