Thu Mar 28 2013
Australia’s Newcrest Mining said Thursday that original production guidance is no longer achievable due to restricted production capacity at Lihir and continuing problems with poor ground conditions at Gosowong. Newcrest has reduced financial year 2012-2013 gold production guidance from 2.3 million to 2.5 million ounces to 2 million to 2.15 million gold ounces, which is around 10% below the original minimum guidance level. Annual copper production guidance of 75,000 to 85,000 tons is unchanged.
The gold production outlook for the remainder of financial year 2012/2013 includes Lihir production in the range of 620,000 to 680,000 ounces and Gosowong production in the range of 300,000 to 325,000 gold ounces. Lihir is currently running at reduced production capacity following a shutdown of autoclave 1. Internal autoclave brickwork is damaged. Newcrest has decided to undertake complete and permanent repair to ensure long term, reliable and safe performance of the autoclave. It is anticipated the repairs will take between five to seven weeks to complete. Three other autoclaves at Lihir and the rest of the processing plant continue to operate at capacity.
Newcrest is hoping to regain access to high grade ore in the Kencana mine at Gosowong. “Whilst ground conditions have continued to be difficult and access to high grade face positions has been below our expectations, Newcrest is now mining from high-grade face positions,” the company said in a news release. Telfer was adversely impacted by heavy rainfall in February 2013 associated with Cyclone Rusty, but is still expected to deliver on its original guidance. Cadia Valley and Bonikro are also expected to deliver within the original guidance range.
Meanwhile, Newcrest also announced it has changed the responsibilities of COO Greg Jackson to focus on special projects. Brett Fletcher, executive general manager for Lihir and Peter Smith, executive general manager for Australia and Indonesian operations, now report directly to CEO Greg Robinson. The appointment of former Kagara Ltd. CEO Geoff Day as executive general manager sustainability and external affairs was also announced. Prior to joining Kagara in February 2011, Day was Newcrest’s executive general manager for Papua New Guinea and Indonesia. He replaces Stephen Creese who is retiring as executive general manager of corporate affairs.
Source: mineweb.com