Newcrest Mining has continued to invest in its future as it revealed it has begun commissioning another plant at its Cadia gold mine in New South Wales.
Newcrest managing director and chief executive officer Sandeep Biswas made the announcement on the company’s fourth quarter earnings conference call.
“We’re in the process of commissioning the Cadia molybdenum plant and expect to achieve first production by the end of September 2021,” Biswas said.
The plant has an estimated capital cost of $95 million and is designed to increase process capacity and recovery rates.
Once complete, Newcrest is aiming to process 35 million tonnes per annum at Cadia, with the plant and other developments combining for the upgrade.
Further expansion projects at Cadia include new cave developments, the first of which (PC1-2) was approved in August.
“This project, together with the expansion project currently in progress, is expected to sustain Cadia’s position as one of the largest, lowest-cost and long-life gold mines in the world,” Biswas said.
A second cave development (PC2-3) is still subject to regulatory approval.
The molybdenum plant is also expected to provide additional benefit in the form of a new revenue stream where molybdenum concentrate – a by-product of gold mining – will offset all-in sustaining costs (AISC) at Cadia.
Elsewhere for Newcrest, a new cutback at West Dome Five in the Telfer copper-gold mine in Western Australia will extend the mine for a further two years.
The raft of developments are intended to display Newcrest refreshed aspirations, as defined in February 2021.
Biswas said the new company purpose was creating a brighter future through safe and responsible mining.
“To us, this is about making a positive impact for all of our stakeholders, so that they’re better off with this operating in the community, having invested in us, having partnered with us, or having worked for us,” he said in February.