Newcrest Mining has restarted production at its second Indonesian underground mine that had been shut following a ‘geotechnical’ incident in February. Work restarted on the weekend at Kencana gold mine at the Gosowong project.
Following the geotechnical event on February 8, mining at both Gosowong mines was suspended.
Production was restarted at the Toguraci mine in April and Newcrest plans to gradually ramp up gold production at both mines with full production not expected for at least two months.
Newcrest has maintained its production guidance for the 2016 financial year, but expects Gosowong’s output to come in at the bottom end of the 195,000-235,000 ounce estimate.
Gosowong produced 38,865 ounces during the March quarter, down from 68,702 ounces in previous quarter.
Production for the quarter represented underground mine production to February 7, the processing of low grade stockpiles and trial milling of 4000 tonnes of mineralised waste from Toguraci in March.
All in sustaining costs (AISC) were US$1291, up from $825 in the previous quarter. The increase was principally driven by the suspension of mining activity resulting in lower production and sales than the previous quarter and higher sustaining capital, mainly due to the purchase of two boggers and a full quarter of activity on the extension of the tailings storage facility.
During the suspension or operations, the opportunity was taken to progress technical studies and rehabilitation activities in both mines.