JOHANNESBURG (miningweekly.com) – Gold miner Newcrest has negotiated a lower electricity tariff for its Cadia operation, in New South Wales, which will assist in bringing down the New South Wales-based mine’s all-in sustaining costs to the lower-end of its $255-million to $295-million guidance range for the 2018 financial year.
Newcrest has extended its electricity contract with EnergyAustralia for another five years to June 2023. The new contract provides a base case about 20% lower than the previously contracted price for the 2018 financial year.
The previously contracted price would have resulted in an increase in Cadia’s operation costs in the order of $55/oz to $60/oz. Newcrest said on Tuesday that the new contract would reduce that impact to about $30/oz to $35/oz.
“The five-year extension provides an improved financial outcome to Newcrest, allows time for government policy and regulation to be better defined and time for Newcrest to identify, evaluate and potentially construct or contract a renewable energy supply that could contribute to Cadia’s long-term electricity requirements,” said MD and CEO Sandeep Biswas.