Rinehart’s Hancock weighs $3.3 billion iron ore mine project
Hancock acquired a 51% interest in the Mt Bevan project from Legacy Iron Ore Ltd. and Hawthorn Resources.
Newcrest Mining (ASX:NCM) said it will produce about 150,000 oz less gold in its 2011/12 financial year due to production disruptions at Cadia Valley and Lihir, and lower feed grades and recoveries at Telfer.
Revised gold production guidance is 2.430 – 2.550 million ounces.
The company said that it is unlikely that production shortfalls will be made up for the remainder of the financial year.
Newcrest was off 1.68% to $31.07 a share.
Lihir production was lower due to “. . . the extended time required to complete the total plant shut down during August and the extreme rainfall during September which impeded production from high grade positions in the open pit until mid November.”
“Telfer production for the first two quarters is expected to be approximately 50,000 ounces lower than planned which is unlikely to be recovered this financial year. Mill throughput rates have been in line with plan, however lower feed grades and material movement from main dome open pit, coupled with lower metallurgical recoveries associated with the commencement of west dome ore feed have impacted production. The scheduled commissioning of Jamieson Cells in January and planned installation of an Isa Mill later in FY2011/12 are expected to improve ore recoveries.
