Newcrest restarts operations at Kencana underground mine in Indonesia


Australia-based Newcrest Mining has restarted mining at the Kencana underground mine in Indonesia after it closed earlier this year following a geotechnical incident.

The mine is located on Halmahera Island, and is part of the Gosowong operation.

Newcrest halted operations at Kencana after the site's underground section was damaged due to a rock fall and left one worker trapped about 300m underground.

Following the event, the company suspended mining and processing operations at Gosowong.

"A number of mining levels were damaged during the incident and the company evacuated the Kencana mine immediately."

The company plans to gradually increase production at the mine.

Newcrest said Gosowong production for 2016 is expected to be around the bottom end of its guidance range.

When the incident occurred, the company did not know what caused it.

A number of mining levels were damaged during the incident and the company evacuated the Kencana mine immediately.

Gosowong is owned and operated by PT Nusa Halmahera Minerals, an Indonesian company 75% owned by Newcrest, produces gold and silver doré.

The processing plant at Gosowong has a capacity of up to 800,000t per annum and consists of a primary jaw crusher followed by SAG and ball mill circuit and a Vertimill circuit.

The operation produced 331,555oz of gold and 410,970oz of silver in the financial year ending 30 June 2015.