29 Aug 2012

Operations resume at Lihir gold mine in PNG

3:01 pm on 29 August 2012

Operations have resumed at Newcrest's flagship gold mine in Papua New Guinea after a dispute with local land owners was resolved.

Australia's biggest gold miner says normal operations resumed overnight at the Lihir mine, where production was suspended on Sunday.

Landowners were protesting over what they see as inadequate benefits from the mine operations and they earlier rejected Newcrest's recent offer of a one point 2 million US dollar payment.

The company says it has met with land owners and government representatives, and worked out a way to resolve their differences.

Lihir in New Ireland province is one of the world's biggest gold mines and is undergoing a one point 3 billion US dollar expansion.