PERTH (miningweekly.com) – Gold miner Newcrest Mining has suspended mining and processing operations at its Cadia operations, in New South Wales, following a breakthrough of tailings material at the operation.
The miner on Monday reported that the breakthrough at the northern tailings dam embankment was contained within the southern tailings dam, and no environmental damage has been reported to date.
No injuries were reported as a result of the event, and Newcrest told shareholders that there was no ensuing threat to personal safety.
However, Newcrest noted that as a precaution, tailings depositing stopped into both dams late on March 9, to allow site management to focus on the evaluation of the event and on remediation plans, with all mining and processing operations progressively suspended on March 10.
The area around the tailings dam has been secured and a geotechnical monitoring system has been implemented to allow real-time assessment of ground movement of the dam wall.
No further movement of the wall has been detected since March 9.
“The safety of our people and the community, together with the highest standard of environmental compliance, are paramount and remain our focus as we investigate this event and enact our forward work plan,” said Newcrest MD and CEO Sandeep Biswas.
Biswas noted that while it was too early in the evaluation and recovery process to provide an indication as to how production, capital and cost guidance would be impacted for the full 2018 financial year, the event was expected to "adversely impact" on the company’s financial results given the contribution of the Cadia operation to the overall outcomes of Newcrest.
Cadia contributed 32% to Newcrest's total revenue for the half-year ended December.
Shares in Newcrest traded 5% lower on Monday at A$20.60 each.