16 Dec 2014

Development plan change for new PNG mine

2:55 pm on 16 December 2014

The Australian multi national company, Newcrest Mining, expects to save up to 2.5 billion US dollars by splitting the development plan for a new mine in Papua New Guinea into two stages.

The first stage of the Golpu gold and copper project will target the higher value portion of the ore body and is forecast to cost 2.3 billion.

The joint venture project with Harmony Gold Mining was originally estimated to cost 4.8 billion.

Newcrest's chief executive Sandeep Biswas says by targeting the high value core of the ore body first, the company will ensure the mine is cash flow positive earlier in its life.

Production at the mine is forecast to begin in 2020 with annual output expected to peak at 320,000 ounces of gold and 150,000 tonnes of copper by 2025.

Mining in West Australia.

Photo: AAP