Newcrest resumes Kencana mine production

The gold miner’s second Indonesian mine is back to work after a geotechnical incident.

Gold miner Newcrest Mining has restarted production at its second Indonesian underground mine that had been shut following a ‘geotechnical’ incident in early February.

Newcrest said on Tuesday that it restarted work at the Kencana mine at Gosowong over the weekend.

The company had restarted work at the Toguraci mine in April. Newcrest plans to gradually ramp up production at both mines. The group expects to take at least two months to reach full production.

Newcrest has maintained its production guidance for fiscal 2016, but expects Gosowong’s output to come in at the bottom end of the 195,000-235,000 ounce estimate.

Newcrest shares closed up 25 cents or 1.1 per cent at $22.55 on Tuesday as gold miners lifted on the back of a rise in gold prices, defying a fall on the broader Australian market.

AAP