New problems at Telfer’s tailings dam have put the mine out of production since mid-April
Would-be buyers of Newmont’s ageing Telfer gold mine in remote WA may also have to budget for a long-term fix for its troubled tailings dams.
Newmont’s Telfer gold mine could be out of action until September amid major issues with its leaking tailings facilities, with WA mine safety officials banning the use of Telfer’s processing plant until problems are fixed.
The suspension of production at Telfer is the second in less than six months, and comes as Newmont is trying to sell the ageing facility, as well as the nearby Havieron deposit – touted as a major life extension for the gold mine.
Industry sources say the latest problems at Telfer’s tailings facilities could take until September to fix, complicating efforts to find a new buyer for the mine.
Telfer was out of action for eight weeks early in 2024 after workers spotted sinkholes at the waste facilities, and Newmont was forced to shut down the mill as it was banned from depositing processing waste into the tailings dams.
The Australian reported in April that processing through Telfer’s mill had again been suspended after heavy weather in the region led to the re-emergence of problems with the tailings facilities.
WorkSafe chief inspector of mines Tony Robertson on Monday confirmed two prohibition notices had been issued covering use of two tailings facilities at the mine – the two most recently built at Telfer
“WorkSafe will lift the prohibition notices once the company meets the required directions,” he said.
A spokesman for Newmont said milling had been suspended since April 14 as the company dealt with the issues.
“Mining at Telfer is continuing with the ore being stockpiled,” he said.
Telfer has been operating since 1977 and has eight tailings dams, only two of which are currently in use – TSF7 and TSF8.
The most recent prohibition notice relates to the newest tailings dam, TSF8. The second, sitting over TSF7, is believed to have been in place for some months.
Newmont acquired Telfer through its acquisition of Newcrest Mining last year, and put Telfer up for sale in February. The latest incident with the tailings facility is understood to have come at an embarrassing time for the global mining giant, shortly after the company conducted due diligence tours for would-be buyers.
The ongoing issues hint at the potentially expensive problem for any purchaser, particularly given Newcrest’s most recent tailings facility reports, published in 2023, also noted the need for a formal assessment of the stability of the mine’s first six tailings dams, saying a dam safety review for all of the mine’s facilities was being planned.
Telfer produced almost 349,000 ounces of gold last financial year, under Newcrest’s management.
Reports published by Newcrest in August 2023 on Telfer’s tailings facilities noted historical problems at TSF7 “with respect to stability and internal erosion of the embankment”.
The problem is believed to include instability between the walls separating TSF7 and TSF8 which, while lessening the risk to workers, could mean the eventual solution will require construction of an entirely new tailings facility – likely to be an expensive and lengthy process.
Newmont shares closed up 29c to $62.31 on the Australian market on Monday.