Newcrest Mining Ltd will on Thursday formally open Australia's biggest gold mine, the redeveloped Telfer mine in Western Australia's north.
It marks the beginning of a major growth phase for the miner.
The mine has been in commissioning mode since February producing 217,740 ounces of gold and Newcrest has forecast output of 800,000 ounces in 2005/06.
Advertisement: The mine also produced 24,628 tonnes of copper in 2004/05 which it said would increase to 55,000 tonnes of copper.
Newcrest spent $1.2 billion redeveloping the mine and in May said a slow ramp up would bite into its profits for the next two years.
The development was hindered by an underground fire in May with work stopping for five days.
Costs also blew out by as much as $209 million because of a shortage of skilled labour and the effects of a cyclone last year.
The output from Telfer will combine with Newcrest's other world-class asset, Cadia-Ridgeway in New SOuth Wales, which reported a poor June quarter because of maintenance shutdowns.
The contribution from Telfer saw Newcrest's production for 2004/05 of 339,497 up more than 50 per cent on the previous year.
Citigroup Smith Barney said 2005/06 should be a better year for Newcrest with the Telfer shaft due to be commissioned in early October and the pyrite plant scheduled for a January 2006 start.
NCM Price at posting:
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