As part of its share-crunching announcement earlier this month on holding $A5-6 billion of asset impairments since the gold price plunge, Newcrest flagged using the big stockpile at its Lihir mine to avoid all high-cost ounces.
This stockpile has respectable 2.3 grams per tonne gold grade and Newcrest has previously said treating this ore at Lihir costs about $2 a tonne, compared to $12-14/t for freshly mined ore.
On the consequential cut to production, Macquarie Private Wealth has forecast that Lihir's output could fall 23% to 697,000 in the 2014 financial year.
Bloomberg has since reported that Newcrest will cut its Lihir workforce by 5-7%, or about 150 jobs.
While talks between Newcrest and PNG Prime Minister Peter O'Neill over possible government assistance were expected last week, a Newcrest spokeswoman reportedly said they had not occurred but the miner was prepared to hold a meeting to discuss its plans.
The National has reported Newcrest country manager Peter Aitsi as saying that 10% of Lihir's expat workforce and 8% of its PNG national workers would lose their jobs.
The big open cut mine previously employed about 3000 directly and 2000 contractors.
The job and production cuts make the mine's long-running million ounce per annum project, started by previous operator Lihir Gold, further off the cards.