Newcrest resumes operations in Toguraci mine, Indonesia

11 April 2016 (Last Updated April 11th, 2016 18:30)

Newcrest has resumed operation at one of its two underground mines in Indonesia that were closed down in February due to a ‘geotechnical event’.

Newcrest has resumed operation at one of its two underground mines in Indonesia that were closed down in February due to a 'geotechnical event'.

The firm has begun work again at its Toguraci mine at Gosowong and will slowly increase the production rate.

At least two months are expected for this mine to achieve full production.

Work at the Kencana mine is adjacent to the Toguraci mine and continues to be suspended as technical studies are being conducted.

"The rate of mining at Toguraci will gradually increase over time, with full production from Toguraci not expected for at least two months."

A miner named Pak Mursalim Sahman remained trapped for almost eight days around 300m underground at Kencana mine in February.

A 38m bore hole from an existing tunnel had to be drilled to reach him.

Although a part of the Toguraci mine has begun operations, an update for production and cost guidance for this year would be given only following the completion of recovery and resumption plans.

After the 'geotechnical event' in February, technical studies and rehabilitation work had been carried out at both the mines.

While the two mines were suspended, some low grade material that were stockpiled had been processed, reported The Australian.

The publication reported the firm as informing the Australian Securities Exchange: "The rate of mining at Toguraci will gradually increase over time, with full production from Toguraci not expected for at least two months."

"Technical studies in relation to Kencana are well advanced but yet to be completed."

The firm had expected around 350,000 ounces of its 2-2.4m million ounce gold output to come from Gosowong this year.