Thursday, 28th July 2005 (2832 views)

Newcrest Mining has announced the successful opening of its Telfer mine in Western Australia, the largest in the country.

The Australian company has denied rumours of a possible corporate takeover and insists that it is turning a corner at the mine.

Newcrest said in statement that it expects to hit its downgraded earnings forecast for the 2005 fiscal year, with the rejuvenated Telfer mine playing a key role.

Telfer has suffered a succession of setbacks since it started operation in November last year, including a major cost blowout, a cyclone and quality issues.

Newcrest managing director Tony Palmer stated: "When you start a big, new mine like Telfer, obviously there are a lot of issues getting a new team together, (and) with a big new plant like this you're never quite sure, for example, where the wear will turn up."

Mr Palmer insisted that the plant was now running "quite solidly" at 90 per cent availabilities. First gold was poured in February, following a five-year closure, at a re-development cost of $1.4 billion and the mine is expected to produce an average of 800,000 ounces a year for at least 25 years.

 

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