Name of the Project
Cadia copper/gold expansion.

Location
New South Wales, Australia.

Client
Newcrest Mining.

Project Description
The project aims to expand the Cadia plant from 30-million tonnes a year to 33-million tonnes a year, with potential to expand this further to 35-million tonnes.

By increasing throughput to 33-million tonnes a year, gold and copper production will be brought forward.

Copper production is estimated at 7 800 t/y and gold production at 344 000 oz/y over the project’s mine life.

About 3.5-million tonnes of copper and 15.5-million ounces of gold are expected to be mined over the project’s 45-year mine life.

To reliably expand the processing plant beyond 35-million tonnes will require a third concentrator.

The project includes the full development of the next macro block PC2-3 cave. It is proposed that PC2-3 will use the El Teniente footprint layout with 32 m × 20 m drawbell spacing comprising 151 drawbells and a footprint of 97 000 m2.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value of $887-million and an internal rate of return of 21%, with a payback of eight years.

Value
An estimated capital investment of $598-million will be required.

The processing plant and underground materials handling expansion will cost about $58-million, while the development of the macro block PC2-3 cave will cost about $540-million.

Expansion of the processing plant beyond 35-million tonnes will require capital expenditure of $440-million.

Duration
The PEA forecasts the start of production ramp-up by the end of the first half of 2022.

Latest Developments
A feasibility study is expected to be completed in the first half of 2020.

The study will investigate development of PC2-3 and expansion of the plant to 33-million tonnes a year, recovery improvements through course separation or additional ball milling, and development of potential options to further debottleneck the processing plant to 35-million tonnes a year.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Newcrest Mining, tel +61 3 9522 5333, fax +61 3 9525 2996 or email corporateaffairs@newcrest.com.au.