Australia's biggest gold producer Newcrest Mining has arranged for interim gas supplies for its Telfer mine, in Western Australia, after an explosion that severed natural-gas supplies from Apache Energy's offshore plant earlier this month.

Newcrest has reached an agreement for interim gas supply from North West Shelf, which will enable  it to maintain full production until the end of September, if required, although Apache has said it expects to resume partial gas supplies from its Varanus Island facility by mid-August.

Gold production in June was reduced by between 20 000 oz and 25 000 oz, the company said on Friday.

Although the interim gas-supply agreement would substantially reduce Telfer's reliance on diesel, the combination of additional maintenance and energy costs during June were expected to add some A$15-million to costs, Newcrest said.

Shares in the company rose 11,5%, to A$28,89 a share on Friday.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.