Name of the Project
Cadia copper/gold expansion.

Location
New South Wales, Australia.

Project Owner/s
Newcrest Mining.

Project Description
The first stage of the Cadia expansion comprises the start of the next cave development (PC2-3) and an increase in the nameplate capacity of the process plant to 33-million tonnes a year. This includes the mine development, materials handling system upgrades, associated infrastructure and initial works.

The second stage, which is in feasibility study, is focused on a further increase in processing capacity to 35-million tonnes a year and recovery-rate improvement projects.

Gold recovery improvements resulting from phases 1 and 2 are expected to achieve life-of-mine (LoM) gold recovery rates of about 80% and copper recovery rates of about 85%.

The project has a LoM of 45 years, with average gold production estimated at 16.38-million ounces and copper production of 3.47-million tonnes over the LoM.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an expected (real) net present value of $1.17-billion and an internal rate of return of 21.5%, with a payback of 7.6 years.

Capital Expenditure
The project will cost $865-million.

Phase 1 will cost $685-million, including the cost of the PC2-3 cave development. Phase 2 will cost about $180-million.

Planned Start/End Date
PC2-3 is targeting first production in the 2023 financial year. Phase 2 is expected to be completed in late 2022. Based on the latest estimates by Newcrest Mining and separate to the Cadia expansion capital, the replacement of the Concentrator 1 semiautogenous grinding mill motor is planned to occur in the second half of the 2021 financial year.

Latest Developments
The board of gold miner Newcrest Mining has approved a A$685-million investment for Stage 1 of the Cadia expansion project Wales.

The Stage 1 expansion includes the start of the next cave development.

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.