Posted in | Gold | Copper | Earnings

Newcrest Sees 20% Drop in Production

Gold production for Newcrest Mining Limited declined 20% after disruptions at its Cadia Valley and Lihir mines.

Production of gold ore for the quarter ending Dec 31, 2011 was 579,073 ounces and this was much lower than the 722,783 ounces that the company produced in the quarter ending Dec 31, 2010. The reason given for this lower production was in part the extreme rainfall that the mines faced in September last year.

Another reason was the ground slip at the Cadia Valley mine in Australia. The ground slip which occurred in November managed to block access to the open pit mine and disrupt production. Although the higher production in the Gosowong mine in Indonesia did make up for some of the low production, it did not help a great deal.

Newcrest Gold has now lowered its full year production forecast for the year 2012 to between 2.43 million and 2.55 million ounces. In 2011 the company had forecast a production of 2.7 million ounces, which it failed to meet.

Besides gold, Newcrest Gold also mined 18,171 metric tons of copper this year as compared to 17,712 tons of copper the year before. It is now hoping to produce 18,900 tons of copper in 2012.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.

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