Newcrest has recorded a significant drop in production in the September quarter with lower gold grades at its Hidden Valley mine site due to an incident.
Following the fatality at Hidden Valley on 18 July 2015, operations were suspended while an investigation was completed and all critical controls for high-risk tasks were identified and reviewed.
A Hidden Valley Joint Venture employee was fatally injured in an accident on a road at the Hidden Valley mine site.
Mining activities restarted on August 20 and processing activities partially recommenced on August 23, ramping up to full production rates thereafter.
The use of heavy vehicles on the road where the death occurred remains subject to some restrictions by the PNG Mineral Resources Authority.
Following the fatality, all pre-stripping activities at Hidden Valley stage 5 have been deferred.
A decision on future cutbacks is not required until FY17 (Financial Year 17).
A review of Hidden Valley stage 5 stripping will occur during the second half of FY16.
Newcrest managing director and chief executive officer Sandeep Biswas, passed his condolences to the colleagues and families of the deceased.
“We are deeply saddened that two of our colleagues were fatally injured during the quarter.
“The first at Hidden Valley and the second at Cadia. I extend my deepest condolences to the families, friends and work colleagues affected by these events. I have instigated a full and detailed review of all aspects of safety management at all our sites with a particular focus on high risk tasks.”
Operations at Ridgeway and Hidden Valley were suspended for 11 and 33 days respectively following the fatalities, impacting production at both sites.