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Thursday, 28th July 2005 (4369 views)

Newcrest Mining has announced the successful opening of its Telfer mine in Western Australia, the largest in the country.<br/><br/>The Australian company has denied rumours of a possible corporate takeover and insists that it is turning a corner at the mine.<br/><br/>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.<br/><br/>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.<br/><br/>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."<br/><br/>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.<img alt="track" src="http://feeds.directnews.org.uk/feedtrack/dn.gif?feedid=196&itemid=14015075"/>

 

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