Newmont Asia Pacific senior vice president Jeff Huspeni said the Asia-Pacific region is Newmont’s highest cost region, but was vital to the company, contributing 37% of 2011 production and 41% of cashflow.

“We’re taking it no different than all mining companies, whether you’re in iron ore or the gold sector,” he told media on the sidelines of Diggers & Dealers 2012.

“We’re looking at our total costs, so sustaining capital, development capital, exploration, advanced projects and operating costs. “

He said there were two factors to cash costs, the first being grade, strip ratio and recoveries, and the second being input costs.

“On the input side, it’s labour, it’s power, it’s consumables, fuel, so one of the things we have to do is work pretty darn hard to make sure that we’re keeping costs as low as possible and maximising that operating margin,” Huspeni said.

“I think we’re no different to anyone else that’s working in the Australian space but I think you can’t let up on it.”

As part of the battle to bring down costs, Huspeni said the company had been talking to partners and contractors.

“I think people are realising that if we’re going to make this boom really be a lasting boom and one that Australia and the world for that matter, can benefit from … we’re going to have to do that together,” he said.

“We have to agree to squeeze some of those costs back down.

“So are we over the hump?

“Boy, I don’t know, but I do know that the dialogue is picking up and some of the intensity on it is picking up too.”

Boddington’s cash cost guidance for the year was $US800-850 per ounce of gold, much higher than the company’s overall cost guidance of $625-675/oz for the year.

Huspeni added that the quality of assets that Newmont continued to find in Australia would be critical.

“We can never let up and actually quite a focus on business excellence and developing a culture in the organisation – to say ‘hey, we’re going to squeeze a nickel twice before we spend it’ – is where the whole industry has to go and we have to get back to that.”