Newcrest Details Regulatory Approval for Havieron Expansion
- AUD146 million and US50 million ready to be put into Havieron project expansion.
- Joint Venture between Newcrest and Greatland Gold with the majority owned by NCM.
- NCM bringing value to shareholders, landlords and environment through socially responsible decisions and agreements.
On the 13th of January, Newcrest Mining Limited (ASX: NCM) released an update to the public detailing the approval of AUD146 million for the construction of the box cut exploration decline to extend the surface infrastructure at the Havieron Project in Western Australia. The project is a joint venture (JV) with Greatland Gold plc, with funding approval following all regulatory approval to begin the expansion.
Chief Executive Officer, Sandeep Biswas reflects on the achievement of helping Newcrest achieve commercial production goals at Havieron. The development hopes to bring significant value for stakeholders along with the nearby Telfer mine and other exploration projects within the Paterson Province.
Regulators have approved the commencement of works which include the construction of a box cut, exploration decline and support surface infrastructure. This comprises of evaporation ponds explosives magazine, maintenance workshops, fuel facilities, administration building and laydown area. This should begin smoothly with funding flowing from a loan agreement entered with Greatland Gold which gives the project access to a total of US50 million, with Newcrest Board approving the aforementioned AUD146 million.
The mineralisation in the area has great potential, with indications that there are multiple directions that the JV could develop. Newcrest will benefit from this now that they have met the Stage 3 expenditure requirement of US45 million which now makes the JV a 60 per cent Newcrest project, with another 10 per cent up for Newcrest ownership should they exceed an expenditure of US65 million. Additionally, at the end of the stage 4 farm in, NCM has the option of purchasing another 5 per cent at fair value.
Newcrest also signed a new compensation relocation and benefit-sharing agreement at the Lihir project with the lease area landholders in Papua New Guinea. This has led to a range of positive changes from the prior agreement, including socio-economic developments for the landholders and allows for benefits to be distributed directly to beneficiaries.
This allows for stronger relationships to be developed in the area and secures the mining lease with the spirit of transparency for compensation and relocation driving the corporate policy behind the developments on Lihir Island.
This socially responsible agreement is in line with how Newcrest has been approaching operations, reflected in the prior signing of a Power Purchase Agreement with Tilt Resources (TLT), which will help deliver around a 20 per cent reduction in greenhouse gas emissions. Renewable power will come online in the coming years and is projected to generate around 40 per cent of the Cadia project energy needs.
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