21 Oct 2011

Australian gold miner blames shutdown at PNG mine for cost blow-outs

11:36 am on 21 October 2011

Australia's largest gold miner Newcrest Mining insists it can still meet its production targets despite a 16 percent drop in gold production and cost blow-outs.

The miner is forecasting an output of 2.925 million ounces this financial year, compared to 2.527 million ounces last year.

Newcrest blamed the drop on maintenance shutdowns at its Lihir Island project in Papua New Guinea, Telfer in Western Australia and Gosowong in Indonesia, along with high rainfall at Lihir.

Shares in the miner also slumped to an almost four-week low