Newcrest Mining Announces Breakthrough of Tailings Material Identified at the Cadia Northern Tailings Dam Embankment

In the late afternoon of Friday 9 March 2018, a limited breakthrough of tailings material was identified at the Cadia northern tailings dam embankment.

This breakthrough has been contained within the southern tailings dam. Newcrest is monitoring the impact carefully and has observed no environmental damage. There were no injuries as a result of the event and Newcrest believes there is no ensuing threat to personal safety.

An area of the embankment slumped late Friday 9 March 2018 following the identification of cracks earlier in the day in the dam wall during a regular inspection. When such cracks were noticed the site team quickly engaged an independent geotechnical consultant to assist Newcrest’s geotechnical engineers at Cadia with an inspection and preliminary assessment of the embankment.

As a precaution Newcrest stopped depositing tailings into both dams late in the day of 9 March 2018. To allow site management to focus on the evaluation of the event and remediation plans, Newcrest progressively suspended all mining and processing operations at Cadia, fully effective on 10 March 2018.

The area around the tailings dam has been secured, and a comprehensive geotechnical monitoring system has been implemented, involving radar and cameras, to allow real time assessment of ground movement of the dam wall. No further movement of the wall has been detected since Friday night.

The NSW regulators were immediately notified and Newcrest will work closely with them until the review is completed, supported by independent geotechnical consultants.

Since the breakthrough occurred on Friday, Newcrest has been actively engaging local landholders and residents downstream of the tailings facility, keeping them informed about the situation. This will continue.

The tailings material is a slurry of finely ground rock, water and a low level of benign processing reagents. Cadia uses a gravity circuit to recover gold, with the remaining gold and copper reporting to a concentrate which is exported to copper smelters. Cadia does not use a chemical reduction process to recover gold – that is, the gold extraction process does not involve the use of substances such as mercury, cyanide and arsenic.

The Cadia tailings dams have been regularly inspected, reviewed and monitored; and have been fully certified to industry standards by independent third parties.

Geotechnical analysis has commenced on possible repair options of the failure zone. Work has also commenced on multiple recovery scenarios including alternative tailings locations such as the old Cadia Hill open pit, which is already the subject of a prefeasibility study to assess suitability for tailings disposal.

Cadia is owned and operated by Newcrest. The operation is 25 kilometres from the city of Orange in central west New South Wales and is 250 kilometres west of Sydney.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s