Oct 17, 2017 | The Western Australian
Newcrest has this morning announced it will push ahead with $93 million of capital works at its Telfer gold mine in the Pilbara, stretching the life of the open pit out beyond 2020.
The company said access to economic grades of ore from an expanded West Dome were expected to improve the mine’s narrow margins over time and extend the life of the open pit by another four years to about 2023.
The decision comes just a week after the WA Liberals killed off the McGowan Government’s hopes of lifting gold royalty rates to raise $392 million over four years.
Newcrest managing director and chief executive Sandeep Biswas said: “We are pleased and relieved that the WA 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.
“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 extra investment expenditure is set to start in the current quarter.
Newcrest shares were off 0.82 per cent to $21.80 at 8.10am.
