MANAGEMENT

Cadia's costs come in lower for Newcrest

Newcrest Mining said costs for the Cadia expansion project have come in lower than anticipated

Staff Reporter

This article is 6 years old. Images might not display.

The miner said it has estimated total capital expenditure for Cadia's growth is now A$598 million (US$439 million). Capex for it and the plant expansion, totalling A$58 million for the facility and underground materials handling, has come in about A$252 million lower than estimated.

Most of the expense will be for the development of the next macro block, PC2-3, which on its own will be A$540 million.

"Two years ago we set out to expand Cadia to 32 million tonnes [annually] for an expected cost of A$310 million; today we announce expanding the plant to 33 million tonnes [annually] for A$58 million with potential to grow to 35mt/y," managing director and CEO Sandeep Biswas said, noting that, in addition to the A$252 million in savings, throughput capacity will rise by one million tonnes each year.

"The mining rate profile analysis showed that a long-term sustainable mining rate of 33mt/y is achievable and that 35mt/y represents the upper limit of Cadia's caving footprint capability until approximately [fiscal year 2027], when PC1-2 production ramps up."

The pre-feasibility study offers different scenarios for Cadia's expansion, including a capacity boost to its plant which, to reliably expand beyond 35mt/y, Newcrest said would require the addition of a third concentrator - and spike its capex by about A$440 million overall.

Additionally, it outlined, the facility would require a new secondary crushing circuit for the concentrator one million circuit, a crusher and secondary screen feed, pebble crusher and 1.5MW ball mill.

Production-wise, the assessed cases range between 30mt/y to 40mt/y.

Newcrest said it will release its feasibility study findings for the expansion in the first half of 2020.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

editions

Future Fleets Insights 2025

Mining IQ Future Fleets Insights 2025 looks at how companies are using alternative energy sources to cut greenhouse gas emmissions

editions

Automation and Digitalisation Insights 2024

Exclusive research for Mining IQ Automation and Digitalisation Insights 2024 shows mining companies are embracing cutting-edge tech

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.