ACCRA, May 26 (Reuters) - Newmont Mining Corp (NEM.N: Quote, Profile, Research) expects to produce 500,000 ounces of gold at its Ahafo mine in Ghana in 2008, up 12 percent on last year's 456,000 oz, Vice-President for Africa Operations Jeff Huspeni said on Monday.

Rising oil, labour and other costs would push the average cost per ounce up to between $485 and $520 this year, from $396 last year, Huspeni told Reuters in an interview in Ghana's capital Accra. (Reporting by Kwasi Kpodo, editing by Alistair Thomson)