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Newmont estimates the initial underground expansion of its Red Chris mine in British Columbia will cost $4.2 billion to $4.8 billion, including contingency but excluding transition costs. The estimate assumes a C$500-million federal contribution whose terms are not final; Newmont expects an investment decision early next year and commercial production in 2033.
Newmont has estimated that taking its Red Chris copper-gold mine underground in British Columbia will cost between $4.2 billion and $4.8 billion (C$6.4 billion at the upper end), with commercial production targeted for 2033. The estimate, disclosed alongside the company’s quarterly results, puts a major proposed Canadian mine expansion’s cost and funding assumptions in focus as Newmont works toward an investment decision early next year.
The estimate includes contingency but excludes the cost of transitioning from open-pit to underground mining. It also assumes a C$500-million federal contribution, but the terms of that contribution have not been finalized. Newmont said it expects to fund construction from internal cash flow. The company owns 70% of Red Chris and operates the mine with Imperial Metals, which owns the remaining 30%.
Newmont’s initial underground plan covers two mining blocks over 13 years. The company forecasts average annual production of 275,000 to 325,000 ounces of gold and 65,000 to 85,000 tonnes of copper from 2035 through 2040. It says the initial stage is expected to produce 3 million ounces of gold and more than 850,000 tonnes of copper. Commercial production is targeted for 2033, ahead of the forecast production averages for 2035–2040.
President and CEO Natascha Viljoen said engineering is at least 60% complete and that the feasibility study is nearing completion. Newmont expects to make an investment decision early next year. Construction could start in 2027, subject to board approvals; those dates are company targets, not confirmation that construction has been authorized.
Red Chris Cost and Funding
The estimate sets the scale of the capital commitment Newmont may make to expand its Canadian copper and gold production. The upper-end figure is substantial, and the reliance on a C$500-million federal contribution means the final funding picture depends in part on terms that remain unsettled. Newmont’s stated plan to use internal cash flow also links the project to its broader spending priorities.
The cost is higher than the US$2.1-billion estimate in a 2021 prefeasibility study by previous owner Newcrest. However, the studies cover different scopes and durations: the earlier plan described three blocks over 31 years, while Newmont’s initial stage covers two blocks over 13 years. Scotiabank analyst Tanya Jakusconek cautioned that a direct comparison is not useful because of those scope changes. She also wrote that Red Chris’s higher capital estimate could overshadow other aspects of Newmont’s quarterly results.
Newmont expects development spending to rise by about $500 million next year from this year’s $1.4-billion budget as it invests more at Red Chris and Lihir. Viljoen said about $250 million of that increase would be related to Red Chris, subject to project approval. The figures make the mine a material part of the company’s near-term development spending, while its eventual output would contribute copper as well as gold.
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From Open Pit to Underground
Red Chris is about 1,030 kilometres northwest of Vancouver. The current proposal would develop the mine underground, with Newmont describing the initial plan as a smaller, shorter first stage than the plan in Newcrest’s 2021 study. Newmont also sees potential to extend mine life through later development, including at East Ridge, but those additions are not included in the initial plan. The company has discussed potential mine life of up to 70 years if further development proceeds; that is a longer-term possibility, not part of the costed initial stage.
The expansion has received government attention. In June, British Columbia granted key permits through a consent-based process with the Tahltan Nation, according to the report. Ottawa referred Red Chris to its Major Projects Office in September of the previous year, among the first five projects selected for support coordinating regulatory approvals and financing. Those steps do not, by themselves, amount to a final construction authorization or settle the federal contribution’s terms.
The project is also one part of Newmont’s wider development schedule. In the same quarterly update, the company said it had brought forward expected commercial production at Tanami Expansion 2 in Australia to the end of June next year, from the second half of 2027. Newmont’s other mine updates provide operating context, but the Red Chris estimate and pending investment decision are the central development in this announcement.
Federal Funding and Final Scope
The cost remains an estimate, not a final construction budget. Newmont’s range includes contingency, but transition costs are excluded, and the assumed C$500-million federal contribution is not yet governed by finalized terms. The source material does not specify how the estimate might change if the contribution, project design or other assumptions change.
The final feasibility study and board decision are still pending. Newmont has identified 2033 as the commercial-production target and 2027 as a possible construction start, but both depend on approvals and project execution. The company has not yet authorized construction in the information provided.
It is also unclear how future development beyond the two initial mining blocks would affect the ultimate cost or mine life. East Ridge and the possibility of a mine life of up to 70 years are not part of the initial plan’s estimate. The company’s production forecasts are projections, not guaranteed outcomes.
Feasibility Study and Board Decision
Newmont says it expects to complete the feasibility study and make an investment decision early next year. If the project receives the required approvals, construction could begin in 2027. The next substantive updates should clarify the study’s final cost and production assumptions, the contribution’s funding terms, and whether Newmont’s board authorizes the project.
Until those steps are complete, Red Chris remains a proposed expansion rather than an approved construction project. Newmont’s current schedule targets commercial production in 2033, with the forecast average annual gold and copper output applying to the 2035–2040 period.
Key Questions
How much does Newmont estimate the Red Chris expansion will cost?
Newmont estimates the initial underground development will cost $4.2 billion to $4.8 billion, equivalent to C$6.4 billion at the upper end. The range includes contingency but excludes transition costs.
Does the estimate include federal funding?
The estimate assumes a C$500-million federal contribution. The terms of that contribution have not been finalized, so the funding arrangement remains unsettled.
When could construction and production begin?
Newmont says construction could begin in 2027, subject to board approvals. It targets commercial production in 2033, with average annual output forecasts covering 2035 through 2040.
What is included in the initial Red Chris plan?
The initial stage covers two mining blocks over 13 years. Newmont forecasts average annual production of 275,000 to 325,000 ounces of gold and 65,000 to 85,000 tonnes of copper from 2035 through 2040.
Why is the new estimate higher than the 2021 figure?
Newcrest’s 2021 prefeasibility study estimated US$2.1 billion, but it covered a different plan: three mining blocks over 31 years, compared with Newmont’s two-block, 13-year initial stage. Scotiabank’s Tanya Jakusconek said the scope differences make a direct comparison unhelpful.
Source: rss
