PERTH (miningweekly.com) – Australian gold miner Newcrest Mining has approved a A$93-million capital investment into its Telfer mine, in Western Australia, which will extend the openpit mine life by four years, until 2023.
The company on Wednesday said that the capital would be spent on expanding the West Dome openpit, with the ongoing access to economic grades of ore enabled by the capital investment expected to improve the mine’s narrow margins over time.
The future of the Telfer mine recently came into question after the state government proposed a 50% hike in gold royalties. MD Sandeep Biswas warned at the time that the Telfer mine, which had the lowest profit margin of all Newcrest mines, would be unable to sustainably absorb the royalty increase.
“We are pleased and relieved that the Western Australian Parliament voted last week not to proceed with the planned increase in the gold royalty rate. This decision, and the positive signal it sent about the state’s investment potential, has enabled us to proceed confidently with this investment to extend Telfer’s mine life,” Biswas said on Wednesday.
“It means jobs, ongoing royalties, a substantial flow of economic activity and ongoing community services and employment opportunities in one of the most remote parts of Australia.”
The extension of Telfer’s mine life was expected to contribute significantly to the state’s economy, with the mine due to spend some A$800-million in operating and capital costs during the current financial year.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
EMAIL THIS ARTICLE SAVE THIS ARTICLE
ARTICLE ENQUIRY
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
