Newcrest halts production at Lihir mine Published 12:21 PM, 28 Aug 2012 Last update 12:44 PM, 28 By a staff reporter, with AAP
Production at one of Newcrest Mining Ltd's main operations has been suspended due a dispute between the gold miner and local landowners.
In a statement to the market, Newcrest said production at its Lihir mine in Papua New Guinea would not restart until its dispute with the Lihir Mining Area Landowners Association has been resolved.
"The processing plant remains on stand-by and all facilities have been secured," Newcrest said.
"All stakeholders, including LMALA and representatives of the National, Provincial and Local level government, are meeting today at Lihir to resolve the dispute.
"Concurrently stakeholders are undertaking a five yearly review of the Lihir Integrated Benefits Package (IBP)."
The dispute is related to negotiations over benefits paid to the land owners at the Lihir site.
"Newcrest is striving for the prompt resolution of the matter and resumption of production."
The open pit mine is located on Niolam Island, also known as Lihir Island, 900 kilometres north of Port Moresby.
It began production in 1997 under the control of Lihir Gold, which merged with Newcrest in 2010.
Newcrest has been working on a major expansion of the mine, and recently said the project was due to be completed in the final quarter of calendar 2012.
In a recent presentation accompanying its full-year results, Newcrest said it expects Lihir to contribute 50 to 70 per cent of its five-year gold production growth target.
Newcrest is aiming to increase overall gold production by between 35 and 50 per cent over the same period.
Newcrest reported a 23 per cent increase in annual net profit to $1.117 billion when it released its financial results earlier this month.
NCM Price at posting:
$26.70 Sentiment: LT Buy Disclosure: Not Held
