Cerro Negro Mine

Overview

Cerro Negro is a key asset of Newmont Corporation (Newmont) in South America, generating over $500 million in annual exports. Located in the Patagonian plains of Santa Cruz, Argentina, 65 km from Perito Moreno, this gold and silver deposit maintains an annual production of 300,000 ounces of gold as of 2024.

The extensive Cerro Negro complex encompasses multiple deposits and exploration targets across more than 220 km², including an open pit mine known as Vein Zone and a heap leach facility with a gold recovery rate between 90-97%. It also includes four high-grade underground mines in operation: Mariana Central, Mariana Norte, Emilia, and San Marcos. Three additional underground deposits—Silica Cap, Gato Salvaje, and Bajo Negro—are projected for future development to extend the mine's lifespan beyond 2035.

Newmont sought a consultant to improve the overall management of Cerro Negro’s expansion projects through environmental, engineering, and construction management services.

Knight Piésold has been providing a multifaceted approach to support one of Argentina's largest mining operations, including the following:

• Completing over 150 assignments for the project, including environmental impact studies and complementary analyses, feasibility studies, conceptual and detailed engineering, and construction management.
• Serving as the Engineer of Record (EoR) for the tailings storage facility (TSF).
• Securing approval from environmental authorities through updated environmental impact reports, closure plans, and complementary studies, helping the project advance through operational phases and future expansions.
• Providing detailed engineering and feasibility study services, supporting the technical development of various infrastructure works, particularly the TSF.
• Leading both surface and underground construction management, overseeing various expansions and infrastructure improvements at Cerro Negro.

The Challenge

Newmont faced the challenge of optimizing the Cerro Negro project due to its magnitude and complexity. They needed specialist services to streamline environmental studies that would facilitate regulatory permits necessary for mining asset expansion. They also needed to optimize and integrate critical project engineering, identifying opportunities to minimize construction costs.

Additionally, they required construction management to improve quality and safety, as well as address costs, timelines, and local contractor performance in both surface and underground operations. Integrating general design guidelines into EoR services was also essential for the TSF.

By selecting Knight Piésold, Newmont sought not only effectiveness in comprehensive management but also optimization of their local procurement and Corporate Social Responsibility initiatives, fostering connections with mining suppliers and training them under Knight Piésold’s 360° construction management framework.

Our Approach

Knight Piésold's involvement has been critical to the Cerro Negro project, offering full-cycle services aligned with Newmont's global standards. By implementing a comprehensive approach and working closely with the Newmont team, Knight Piésold has led the design and optimization of crucial infrastructure, including the TSF, underground developments, and mine infrastructure.

Knight Piésold’s approach—from project management to risk assessment, construction, and operational support—has provided efficient infrastructure. Knight Piésold’s role in expanding the TSF and Cerro Negro's expansion works, under the Engineering, Procurement and Construction Management (EPCM) and Construction Management (CM) models, has been key for the project's success alongside EoR advisory services. This approach encompasses water management, tailings deposition plans, and system updates, such as the Emergency Response Plan (ERP), Operation, Maintenance and Surveillance (OMS), and Design Baseline Report (DBR), underground development, mine infrastructure, plus a robust automation, instrumentation, and monitoring system. Supervision and control have maintained high quality standards, providing Newmont with safety and efficiency of facilities throughout their lifecycle.

Knight Piésold's commitment to sustainability is reflected in closure plans, environmental studies, and efficient water resource management, making certain that Cerro Negro meets high environmental standards and regulations.

A differentiating factor has been innovation, highlighted by the incorporation of BIM methodology, advanced geotechnical models, and dam breach modeling tools. These practices have optimized operational efficiency and improved decision-making.

An added value also lies in Knight Piésold’s comprehensive management capabilities and strategic approach to performance control, allowing to effectively identify and address risks, thereby optimizing timelines and costs to achieve economic performance.

Knight Piésold has become a strategic partner to Newmont, not only optimizing project efficiency, safety, and sustainability, but also supporting social responsibility initiatives that benefit the Perito Moreno community. Additionally, by opening an office in Santa Cruz, Knight Piésold maintains a strategic presence and close relationship during project execution, reaffirming commitment to the client and region.

The Results

Significant accomplishments include the expansion and optimization of the TSF, with the design and management of Phases 3 and 4A raise, providing greater operational capacity and efficiency in tailings management, and the analysis and optimization of the dust mitigation system, reducing environmental impact and significantly improving operating conditions.

In terms of management, a comprehensive EPCM model was implemented for the tailings dam and CM for surface and underground infrastructure, maintaining quality, schedule compliance, and cost optimization. Supervision and control of surface works and underground mining have been central to Knight Piésold's work, including the development of the San Marcos mine and expansion of the East District and Marianas District, meeting high safety and production standards.

Road and access optimization was carried out, including detailed engineering of the North Haulage Road and analysis of the Río Pinturas Road, improving road safety and connectivity within the site. Additionally, a Conceptual Closure Plan for the F4 Tailings Dam was designed, establishing guidelines for an environmentally responsible transition.

In terms of infrastructure, the expansion of key facilities and improvements in roads and tailings dams have strengthened site operability. Regulatory compliance remains a priority, with all project aspects meeting national and international safety and environmental standards.

Knight Piésold's positive impact on the community is evident through social responsibility projects that strengthen local development and the relationship with the Perito Moreno community.

Through this strategic approach, significant advances in project operational efficiency have been achieved. Cost and time reduction through precise planning has optimized each execution stage.