One of the largest and most successful gold producing operations in Australia has undergone a multi-million dollar expansion.

The US$120 million (A$154 million) expansion of Newmont’s Tanami Operations at Granites Gold Mine was made official at an opening on Monday, allowing the miner to produce up to an additional 80,000oz of gold per year.

About 120 jobs were created during construction of the expansion and up to 18 additional jobs will be generated as a result of the expanded operations.

Newmont’s Tanami expansion includes the construction of a 3.2km second decline to underground workings and an increase in the size of the processing plant and mill, including the addition of a ball mill, thickener and gravity circuit to improve recoveries at the mill.

The mine has a 4.5 million ounce gold reserve and has produced around 8 million ounces of gold since it commenced in the early 1990s.

It is located 540km west of Alice Springs, in the remote Tanami Desert, on the border of the Northern Territory and Western Australia.

Chief Minister Michael Gunner said Newmont’s Tanami operation is one of the largest and most successful gold producers in Australia, and the expansion will extend the projected life of the mine by three years.