Rising energy costs represent approximately a quarter of the cost of gold production at Newmont’s various Nevada mine sites. Following a series of power options studies, Newmont selected a PRB coal-fired plant and Fluor as a strategic partner for the EPC (engineering, procurement, and construction) contract.
Several challenges were apparent, such as a lack of available housing, limited supply of craft resources, cold weather impacts, and high transportation costs. Local employment levels at the surrounding mines were high, reducing the availability of local labor.
Newmont also required the completion of several infrastructure additions. This included a new rail loop to accommodate the incoming Powder River Basin Coal deliveries, a five-mile transmission line, and a two-mile raw-water HDPE pipeline.