Telfer Mine

The Telfer Mine is a gold, copper and silver mine located at Telfer on the land of the Martu people,[1]:7 in the Great Sandy Desert of Western Australia. It is owned by Newcrest Mining, "the largest gold producer listed on the Australian Securities Exchange."[2]

Telfer Mine
Location
Telfer Mine
Location in Australia
LocationTelfer
StateWestern Australia
CountryAustralia
Coordinates21°42′30″S 122°13′40″E
Production
ProductsGold, copper, silver
Production
  • 14.1 tonnes (451,991 troy ounces) of gold
  • 15,025 tonnes (33 million pounds) of copper
  • 6.6 tonnes (211,869 troy ounces) of silver
Financial year2018–19
History
Opened1977 (1977), 2005 (2005) (reopened)
Closed2000 (2000)
Owner
CompanyNewcrest Mining
Websitewww.newcrest.com
Year of acquisition1990 (1990)

The mine was discovered by Newmont Mining in 1972. However, Jean-Paul Turcaud, a French prospector, disputes this claim to this day.[3][4]

In the 2008–09 financial year, the mine produced 32,905 tonnes (73 million pounds) of copper and 19.6 tonnes (629,108 troy ounces) of gold, within Newcrest's overall production of 90,000 tonnes (200 million pounds) of copper and 49.8 tonnes (1.6 million troy ounces) of gold.[5] Telfer is one of two gold mines Newcrest currently operates in Australia – the other being Cadia in New South Wales – after selling its shares in the Cracow and Mt Rawdon mines to Evolution Mining Ltd in 2011.[6] A third gold mine owned by the company is the Gosowong Mine in Indonesia.[7]

In the 2019 financial year, Telfer Mine produced 14.1 tonnes (451,991 troy ounces) of gold, 15,025 tonnes (33 million pounds) of copper and 6.6 tonnes (211,869 troy ounces) of silver.[8]:52 Mineral resources at 31 December 2018 were reported as 200 tonnes (6.4 million troy ounces) of gold and 0.59 million tonnes (1.3 billion pounds) of copper,[8]:28 and ore reserves at 31 December 2018 as 62 tonnes (2.0 million troy ounces) of gold and 0.20 million tonnes (440 million pounds) of copper.[8]:30[9] At 2019 production rates, this equates to ore reserves for 4.4 years of gold production and 13.3 years of copper production. That is, until 4 June 2023 and 23 April 2032 respectively.

History

Discovery

Newmont Mining first made a claim to the deposit in 1972.[10] However this claim is disputed by Jean-Paul Turcaud to this date. Turcaud claims he found the Telfer deposit two years before Newcrest did. In the early 1980s, Turcaud reached a settlement, accepting $25,000 from Newmont's head office in New York City but continued his claim, demanding a Royal Commission.[3][11] Turcaud continues to sign posts on Global warming to newspapers as the "Discoverer of the Telfer and Nifty Mine".[12][13]

The official story of the discovery states that the deposit was found by Day Dawn Minerals, a small exploration company, who did not stake a claim either. One of the company's geologists, a man called Ronnie Thomson, then moved on to work for Newmont, in which position he informed David Tyrwhitt, then exploration manager for the company in Western Australia, about the promising gold samples that had been found. Newmont paid Day Dawn $15,000 for the maps of the deposit and Tyrwhitt staked out the claim in May 1972.[3]

First mining period 1977 to 2000

The mine opened in 1977 as a joint venture between BHP Billiton and Newmont Mining. In 1990, a merger between Newmont Australia Limited and BHP Gold Limited resulted in the creation of Newcrest Mining, with ownership of the Telfer Mine now lying with Newcrest.[14][15] The Telfer gold mine was expanded in 1991,[16] and in June 1995, the mine reserves were 118.2 tonnes (3.8 million troy ounces), with resources at 227.1 tonnes (7.3 million troy ounces). The annual production was 11.5 to 11.8 tonnes (370,000 to 380,000 troy ounces) of ore.[17] In 1997, the mine reached the milestone of having produced 155.5 tonnes (5 million troy ounces) of gold.[10] Open cut mining was suspended in August 2000 due to high operating costs. The closure of the mine came one year ahead of schedule as production of underground ore was well below mill capacity and therefore not viable.[10] High production costs were primarily caused by the presence of cyanide soluble copper in the open pit ore.[15] Newcrest then focused on exploratory drilling for new minerals.[14]

Second mining period from 2002

In 2002, Newcrest Mining announced a new redevelopment project worth $1 billion,[18] after discovering new mineral areas and a reserve base of some 591.0 tonnes (19 million troy ounces) of gold and 640 thousand tonnes (1.4 billion pounds) of copper.[19] The redevelopment expanded underground mining areas, deepened open pits, constructed a processing plant and power station, and built a new gas supply line from Port Hedland.[14][20] The Telfer mine is not connected to the Western Australian power grid but instead produces its own power from natural gas via a 450 kilometres (280 mi) purpose built pipeline. The power station on site is able to produce 138 MW of power.[21] The focus changed from open pit mining to underground mining, and Telfer became one of Australia's largest gold mines,[14] second only to Kalgoorlie's Super Pit until Boddington Gold Mine reopened in 2009.[22]

The mine reopened in November 2004, after commissioning of the processing plant and, initially as an open cut mine, from March 2006 also with an underground operation.[15][21]

In January 2008, Newcrest Mining lowered the mine's annual gold output targets. Newcrest said, "At Telfer, mechanical availability of the open pit mining fleet and the processing of harder ores are impacting the expected production profile for the full year. Telfer site cash costs are expected to [rise] over guidance by 8-9 per cent."[23] In June, the mine was affected by the statewide gas crisis caused by an explosion at Varanus Island. The mine lost 622 to 778 kilograms (20 to 25 thousand troy ounces) of gold output for June.[24] Newcrest obtained interim gas supply from Woodside Petroleum until August, when gas supply from Varanus Island resumed.[25]

Newcrest was forced to cut job numbers from 1,400 to around 1,000 in late 2008, during the financial crises, to reduce costs.[26]

As of 2016, the forecast mine life for Telfer is 2021 for the underground operations and 2018 for the open pit operations. Mining is carried out at the Main Dome open pit and the underground operations below. The West Dome pit is being mined again.[21]

On 4 December 2013 a contractor was killed at the mine, being crushed by pipe work.[27]

Production

Production figures for the mine:[21]

Gold
Year Production Grade Cost per ounce
1999[10] 314,295 ounces 1.33 g/t A$390
2000[10] 176,000 ounces 1.62 g/t A$494
2001–2003 inactive
2004-05 218,000 ounces
2005-06 650,000 ounces
2006-07 627,000 ounces
2007-08 590,000 ounces
2008-09 629,108 ounces
2009-10 688,909 ounces

Copper
Year Production Grade Cost
2004-05 25,000 tonnes
2005-06 38,000 tonnes
2006-07 28,000 tonnes
2007-08 27,000 tonnes
2008-09 32,905 tonnes
2009-10 34,815 tonnes

Sources
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References
  1. "Newcrest Mining Annual Report 2009" (PDF). Newcrest Mining Limited. 29 September 2009. Archived (PDF) from the original on 12 July 2020. Retrieved 27 January 2010.
  2. "About Newcrest – Our company". Newcrest Mining Limited. 2020. Archived from the original on 8 June 2020. Retrieved 12 July 2020. Newcrest is the largest gold producer listed on the Australian Securities Exchange and one of the world's largest gold mining companies.
  3. The Golden Riddle: Finder's Keepers? ABC Radio National, produced by Bronwyn Adcock, broadcast: 6 June 1999, accessed: 27 January 2010
  4. Newcrest's Great Sandy speculation The Intelligent Investor, published: 13 April 2005, accessed: 27 January 2010
  5. Preliminary Final Report 2009 Newcrest ASX announcement, published: 17 August 2009, accessed: 27 January 2010
  6. History – About us, accessed: 4 April 2016
  7. December Quarterly Report Newcrest ASX announcement, published: 28 January 2010, accessed: 9 February 2010
  8. "Newcrest Mining 2019 Annual Report" (PDF). Newcrest Mining Limited. 4 October 2019. Archived (PDF) from the original on 13 July 2020. Retrieved 13 July 2020.
  9. The Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC) (19 February 2007). "Australasian Code for Reporting of Mineral Resources and Ore Reserves" (PDF). National Stock Exchange of Australia Limited (NSX). Archived (PDF) from the original on 13 July 2020. Retrieved 13 July 2020.CS1 maint: uses authors parameter (link)
  10. The Australian Mines Handbook: 2003-2004 Edition, page 128, accessed: 27 January 2010
  11. The Golden Rule Book review, author: Bob Sheppard, ISBN 0-85905-311-3, accessed: 27 January 2010
  12. Davos must deal with the water crisis Article in The Telegraph with comment from Jean-Paul Turcaud, published: 21 January 2008, accessed: 27 January 2010
  13. Parched: Australia faces collapse as climate change kicks in Article in The Independent with comment from Jean-Paul Turcaud, published: 1 February 2009, accessed: 27 January 2010
  14. "Marco Zolezzi, general manager, Telfer gold mine, Western Australia". Australian Mining. 15 September 2004.
  15. History of NCM Archived 2 March 2010 at the Wayback Machine Newcrest website, accessed: 27 January 2010
  16. "Elsewhere in precious metals... the second phase of the development". Metals Week. 11 March 1991. p. 8.
  17. "Newcrest upbeat on Telfer mine". Reuters News. 21 June 1996.
  18. "Newcrest cold on Telfer raising". The West Australian. 25 March 2002. p. 28.
  19. Phaceas, John (20 November 2002). "Newcrest nod to invest $1b in Telfer". The West Australian. p. 61.
  20. "Newcrest gets expansion nod". ABC News. 20 August 2002.
  21. Operations - Telfer Archived 22 January 2010 at the Wayback Machine Newcrest website, accessed: 27 January 2010
  22. Peel, Greg (16 November 2007). "Tantalising Telfer". FN Arena.
  23. Le May, Rebecca (25 January 2008). "Miner loses friends as Telfer costs jump". Finance. The Daily Telegraph. p. 62.
  24. Thompson, Dionne (27 June 2008). "Newcrest's Telfer gold output down 25,000 oz on Apache gas stoppage". Metal Bulletin.
  25. "Telfer gas supply back to normal". The Sydney Morning Herald. 19 August 2008. Retrieved 3 September 2008.
  26. Newcrest to slash mine jobs at its Telfer mine The Australian, published: 24 October 2008, accessed: 27 January 2010
  27. Worker killed at Newcrest's Telfer mine in WA north Australian Broadcasting Corporation, published: 4 December 2013, accessed: 31 December 2013
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