Gold Price Boom Steers Fresh Investment in Newcrest Mines

SEATTLE (Scrap Monster): The boom in gold prices has prompted fresh investment by Newcrest Mining in its existing mining assets in Australia. Also, the company plans to list on Toronto Stock Exchange, Canada, thus reiterating its presence in the country.

The company announced investment of $236 million towards two-stage expansion project at Cadia mine in NSW- the largest gold mine in the country. The project will have a capital outlay of $175 million and is expected to lift the mine capacity from 33 million tonnes per annum (tpa) to nearly 35 million tpa. It must be noted that Cadila had accounted for 843,338 ounces of gold, out of Newcrest’s total gold production of 2.171 million ounces during H1 this year. The expansion project is expected to complete by end fiscal year 2021-’22, said the company press release.

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The company announced plans to boost recoveries at its Lihir operations in Papua New Guinea. The project will mainly focus on improving grinding classification and reducing gold losses through the flotation circuits. As a result, the production is expected to rise by 224,000 ounces over the life of the mine.

Commenting on the development, Sandeep Biswas, Managing Director and CEO, Newcrest Mining said that the company is excited to advance its growth pipeline with both of these projects adding significant value to its existing operations.