Newcrest Mining has secured adequate levels of water to continue producing without restraint at the Cadia operations in New South Wales.
The supply is expected to last for at least two years, combatting the severe drought that has impacted the state of New South Wales for several years.
Newcrest had projected that its production at Cadia would be impacted by water shortages in early 2021 should rainfall remain at 1-in-100 year lows as per the last two years.
The gold producer, therefore, implemented efficiency measures to conserve water and optimise on-site bores and other sources.
This includes turning to treated effluent to meet its water needs. Newcrest pumped an average of eight megalitres a day from a sewerage water plant in Orange, close to where the Cadia mine is located.
It also purchased water licences on the water trading market in addition to recent rainfall in the region, improving levels of water being captured in on-site storage facilities.
“Newcrest’s latest internal modelling indicates that Cadia should have enough water to avoid any water-related production interruption for at least the next two years,” the company stated in an ASX announcement.
“Newcrest will continue to pursue further water saving and optimisation initiatives.”