Newcrest resumes work at Cadia

Prashant Mehra | 13 Sep 2017

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SYDNEY - [AAP] Gold miner Newcrest (ASX: NCM) has resumed ore extraction from the second section of its Cadia East mine in NSW, where operations had remained suspended since an earthquake in April.

The company on Wednesday said remediation and upgrade work required to restart Cadia East's Panel Cave 1 crusher chamber has been completed.

It said the regulator has accepted its final ground support plans for Panel Cave 1 and the prohibition notice will be lifted to allow operations as areas are upgraded according to the submitted plans.

Remediation and upgrade work in other areas of the PC1 section is expected to be completed by the end of December.

Cadia--Newcrest's biggest and lowest-cost mine--was hit by a magnitude 4.3 earthquake in central west NSW in early April, prompting suspension of operations.

Production at the mine's Panel Cave 2 section resumed in July, but repair work had continued in the other section.

The miner's FY17 gold production dropped 2.4 per cent and it suffered a 7 per cent decline in full-year net profit, mainly on account of the Cadia hit.

On Wednesday, the company said production at the Panel Cave 2 section continues to be ramped up.

It expects the entire mine's production rates to be fully restored to normal by the end of March 2018.

By 1022 AEST, Newcrest shares were up 0.7 per cent to $22.37 in a firm Australian market.


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