Iron ore majors ramp up supply even as China faces challenges
Iron ore is one of the year’s worst performing major commodities, slumping by almost a quarter as China’s property crisis drags on.
Australia’s top gold producer Newcrest Mining (ASX: NCM), (TSX: NM) warned investors Thursday its expected writedown will likely reach A$6.2 billion, a higher figure than the one announced last June, which sent its shares down to hit a nine-year low.
The company noted it will write $273 million off the value of its investment in gold miner Evolution Mining, and $360 million off fixed assets, inventory and exploration.
The latest impairments add to the list disclosed two months ago, which included Newcrest’s Lihir, Hidden Valley, West Africa and Telfer mining operations
As most gold producers, Newcrest has been hit hard by the current gold prices slide, the worst in 30 years, which has forced the company to cut costs, fire hundreds of employees and close one of its Australian offices, among other belt-tightening measures.
The Melbourne-based company is one of the world’s top five gold mining companies by reserves and market capitalization. The company is engaged in gold and copper exploration, development and mining and has a global workforce of over 19,000.
Although much of its interests are located in Australia, the firm have interests in properties worldwide.
The firm’s official 2013 financial year results come out on Monday.
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