Newcrest restarts Gosowong

MINING has resumed at Newcrest Mining’s Gosowong operation in Indonesia after a two-month hiatus.
Newcrest restarts Gosowong Newcrest restarts Gosowong Newcrest restarts Gosowong Newcrest restarts Gosowong Newcrest restarts Gosowong

The mine was suspended on February 8 due to a geotechnical event at the Kencana mine, which trapped a worker underground for eight days.

Mining has been suspended at both the Kencana and Toguraci underground mines since as technical studies and rehabilitation work was undertaken.

The rate of mining at Toguraci will increase gradually over time, with the mine not expected to reach full production for at least two months.

Mining at Kencana remains suspended and technical studies are progressing.

Some low-grade stockpiled material was processed during the suspension, but the full impact on production and costs won't be determined until after recovery and resumption plans are complete.

UBS noted this week that Gosowong accounts for around 13% of Newcrest's 2016 financial year guidance of 2.38-2.65 million ounces of gold.

Analysts have flagged March quarter production of 593,000oz gold at cash costs of $A690 an ounce, with Gosowong contributing just 24,000oz.

"However, Newcrest could potentially lean on higher grade ore from Lihir to smooth production," UBS said.

Newcrest is scheduled to report quarterly figures on April 26.

Shares in Newcrest rose 3.4% to $18.13 yesterday.

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