Lihir mine expansion project : Newcrest Mining to move ahead with $280m investment
Newcrest Mining will develop the Lihir mine Phase 14A (Lihir mine expansion project) in Papua New Guinea, following the approval of the feasibility study by the company’s board.
The $280 million Phase 14A project is anticipated to provide an additional high grade ore source that will displace lower grade ore feed to the processing facility.
The Australian gold miner said the latest Lihir mine expansion project could enable the mining of approximatenly13 million tonnes of high and medium grade ore, which will be fed through to the financial year 2026 to produce an incremental about 400000 oz of gold.
Lower-grade material will be stockpiled and fed progressively over the remaining mine life, according to the company.
Newcrest Mining to move ahead with $280m Lihir mine expansion project in Papua New Guinea. Photo courtesy of István Mihály from Pixabay.
Sherry Duhe — Newcrest Mining Interim CEO, commenting on Lihir mine expansion project, said: “The development of Phase 14A is another innovative step forward in realising the full potential of Lihir.
“The findings of the Study are expected to deliver gold production from an additional high grade ore source which would have otherwise been inaccessible through standard mining techniques.
“The Study outlines an updated life of mine plan, with upside potential.
“The application of steep wall technologies, together with an alternative, lower cost and simpler seepage barrier design have the potential to enable access to additional high-grade zones outside the current Ore Reserve and extend the elevated production profile beyond FY31.
“The Phase 14A ore zone is now well informed by geotechnical drilling that underpins the design and stability of the cutback and we expect Phase 14A to be delivering higher grade ore from FY24.”
The feasibility study has projected an internal rate of return of 48% and net present value of $202 million with payback of 2.9 years.
The mining of Phase 14A was commenced in the June 2022 quarter through the early works program and will continue through to financial year 2027.
The early works program for the Lihir mine expansion project has included civil works and mining fleet, and establishment of the initial Phase 14A benches.