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Newcrest approves Cadia, Lihir investment programs

Newcrest Mining has formally approved capital projects at Cadia Valley and Lihir costing a combined US$236 million.
Newcrest approves Cadia, Lihir investment programs Newcrest approves Cadia, Lihir investment programs Newcrest approves Cadia, Lihir investment programs Newcrest approves Cadia, Lihir investment programs Newcrest approves Cadia, Lihir investment programs

Cadia in New South Wales, Australia

Flotation circuit additions at Cadia will increase processing capacity from 33 million tonnes per annum to 35Mtpa and improve gold and copper recoveries.

The estimated cost of $175 million is down about $5 million on the estimate a year ago and has an IRR of 21%.

Meanwhile, at Lihir in Papua New Guinea, plant additions and upgrades expected to cost $61 million will slightly improve gold recoveries.

The investment at Lihir has been calculated to have an IRR of 32%.

Shares in Australia's biggest gold miner were up 2% to A$30.90 in morning trade during a positive session for the ASX gold patch.

The stock reached a 12-month high of $38 in August.