Newmont Commits $800M to Extend Cerro Negro Mine Life
Mining News | 2026-02-25 06:56:13
Argentine Economic Minister Luis Caputo confirmed the arrangement, highlighting its economic significance.
By Paul Ploumis
SEATTLE (Scrap Monster): Newmont Corporation has committed approximately $800 million to extend the life of its Cerro Negro gold mine in Argentina beyond 2035, leveraging a record $7.3 billion in free cash flow generated in 2025. The strategic investment underscores the miner’s long-term confidence in its South American portfolio and disciplined capital allocation strategy.
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The company’s strong liquidity position enables it to fund major development initiatives without external financing. Newmont reported record annual free cash flow of $7.3 billion for full-year 2025, reinforcing its balance sheet and providing flexibility to advance high-return projects across its global asset base. The Cerro Negro reinvestment aligns with its 2026 capital framework, which balances sustaining capital expenditures with growth-oriented developments.
Under the Cerro Negro Expansion 1 (CNE1) project, the $800 million injection will support the restart and expansion of operations, enhance safety standards, and strengthen regional employment. Argentine Economic Minister Luis Caputo confirmed the arrangement, highlighting its economic significance.
POLL
What does Newmont’s $800M Cerro Negro investment primarily signal?
Frequently Asked Questions
- How much is Newmont investing in Cerro Negro?
The company has committed approximately $800 million under the CNE1 expansion plan.
- What is the objective of the investment?
To extend the mine’s operational life beyond 2035 and enhance production efficiency and safety.
- What does this signal about Newmont’s strategy?
It reflects disciplined capital allocation and long-term confidence in its South American assets.
