Newcrest reduces production at Lihir

Newcrest's Lihir mine has been forced to temporarily reduce production by a quarter due to mechanical issues at its plant.

Newcrest's Lihir mine has been forced to temporarily reduce production by a quarter due to mechanical issues at its plant.

According to the company there is an issue with the electrical system in the main oxygen plant.

This plant supplies oxygen to the autoclaves to facilitate the pressure oxidation process which enables gold recovery from the ore feed.

"Newcrest's maintenance team and the equipment manufacturer are addressing the issue and are working to have the plant ready for restart in the coming day; full production capacity is expected to be restored within ten days," the miner said.

Despite this, guidance for Lihir's full year production for 2013 remains unchanged at between 700 000 and 900 000 ounces.

"The reduced operation of the existing processing plant during this period does not impact the million ounce plant upgrade project, which remains on track for completion during the December 2012 quarter," it added.

The mine was forced to halt production last month as well after issues came to a head with local indigenous groups.

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