The board of Australia-based Newcrest Mining has approved an A$685m ($463.8m) investment for Stage 1 of the Cadia expansion project in New South Wales.

The planned two-stage expansion project has a total capital cost of $865m and an expected real net present value (NPV) of $1.17bn.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Cadia’s Stage 1 expansion includes the commencement of the next cave development (PC2-3) and increasing the process plant nameplate capacity to 33Mtpa. It also includes completion of the PC2-3 mine development.

Total capital expenditure for the new cave development is estimated at around A$595m ($402.8m), with first ore production expected in 2023.

Stage 2 expansion, which is currently in the feasibility study stage, is expected to cost around A$180m ($121.8m) and would see Newcrest increase the plant capacity to 35Mtpa, along with recovery improvements anticipated for completion in late 2022, which is ahead of the completion of the PC2-3 mine development.

Newcrest Mining managing director and CEO Sandeep Biswas said: “This expansion plan is an improvement on the previous 2018 Pre-Feasibility Study, with an estimated additional 1.8moz of gold production and 67kt of copper production and an estimated $800m increase in projected free cash flow generation by Cadia over its life.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The capital investment has an estimated 21.5% rate of return and ensures Cadia remains a Tier One asset for many years to come.”

The company noted that the rate of ore mined from Cadia is expected to change over time based on draw rates, cave maturity and cave interaction upon development.

In March, Newcrest Mining awarded a contract to Jacobs Engineering Group to provide underground materials handling services as part of the expansion feasibility study at the Cadia gold mine.