Telfer mine explained

Telfer Mine
Pushpin Map:Western Australia
Pushpin Label:Telfer Mine
Pushpin Map Caption:Location in Western Australia
Coordinates:-21.7083°N 122.2278°W
Place:Telfer
Subdivision Type:State
State/Province:Western Australia
Country:Australia
Owner:Newmont
Products:Gold, copper, silver
Financial Year:2022–23
Amount:
  • Gold: 349,000 troy ounces
  • Copper: 17,000 tonnes
  • Silver: 208,000 ounces
Opening Year:1977
Active Years:1977–2000, 2003–present
Type:Underground, open pit
Module:
Stroke-Colour:
  1. C60C30
Stroke-Width:3
Marker:industrial
Marker-Colour:
  1. 1F2F57
Zoom:7

The Telfer Mine is a gold, copper and silver mine located at Telfer on the land of the Martu people, in the Great Sandy Desert of Western Australia. It is owned by Newmont, having acquired the previous owner, Newcrest Mining, formerly the largest gold producer listed on the Australian Securities Exchange, in November 2023.

The mine was discovered by Newmont in 1972. However, Jean-Paul Turcaud, a French prospector, disputes this claim to this day.[1] [2]

Telfer is one of two gold mines Newcrest currently operates in Australia, the other being Cadia in New South Wales.[3]

In the 2019–2020 financial year, the Telfer mine produced 393164ozt of gold, 16000t of copper and 164000ozt of silver.[4]

At 31 December 2020, measured and indicated mineral resources were 3.4order=flipNaNorder=flip of gold and 0.36e6t of copper, and proved and probable ore reserves were 1.1order=flipNaNorder=flip of gold and 0.17e6t of copper.[5]

History

Discovery

Newmont first made a claim to the deposit in 1972.[6] 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.[7]

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.

First mining period 1977 to 2000

The mine opened in 1977 as a joint venture between BHP and Newmont. In 1990, a merger between BHP Gold and Newmont resulted in the creation of Newcrest, with ownership of the Telfer Mine now lying with Newcrest.[8] [9] The Telfer gold mine was expanded in 1991,[10] and in June 1995, the mine reserves were 3.8e6ozt, with resources at 7.3e6ozt. The annual production was 370000to of ore.[11] In 1997, the mine reached the milestone of having produced 5e6ozt of gold. 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. High production costs were primarily caused by the presence of cyanide soluble copper in the open pit ore.[9] Newcrest then focused on exploratory drilling for new minerals.[8]

Second mining period from 2002

In 2002, Newcrest Mining announced a new redevelopment project worth $1 billion,[12] after discovering new mineral areas and a reserve base of some 19e6ozt of gold and 640e3t of copper.[13] 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.[8] [14] The Telfer mine is not connected to the Western Australian power grid but instead produces its own power from natural gas via a purpose built pipeline. The power station on site is able to produce 138 MW of power.[15] The focus changed from open pit mining to underground mining, and Telfer became one of Australia's largest gold mines,[8] second only to Kalgoorlie's Super Pit until Boddington Gold Mine reopened in 2009.[16]

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.[9] [15]

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."[17] In June, the mine was affected by the statewide gas crisis caused by an explosion at Varanus Island. The mine lost 20to of gold output for June.[18] Newcrest obtained interim gas supply from Woodside Petroleum until August, when gas supply from Varanus Island resumed.[19]

Newcrest was forced to cut job numbers from 1,400 to around 1,000 in late 2008, during the financial crises, to reduce costs.[20]

Mining is carried out at the Main Dome open pit and the underground operations below. The West Dome pit is being mined again.[15]

On 4 December 2013 a contractor was killed at the mine, being crushed by pipe work.[21]

Production

Production figures for the mine:[15] [22] [23] [24] [25] [26] [27]

Gold

Annual gold production of the mine:

YearProductionGradeCost per ounce
1999314,295 ounces1.33 g/tA$390
2000176,000 ounces1.62 g/tA$494
2001–2003inactive
2004–05218,000 ounces
2005–06650,000 ounces
2006–07627,000 ounces
2007–08590,000 ounces
2008–09629,108 ounces
2009–10688,909 ounces
2010–11
2011–12
2012–13
2013–14536,342 ounces0.90 g/t$A1,005
2014–15520,309 ouncesna g/t$A791
2015–16462,461 ouncesna g/t$A967
2016–17386,242 ounces0.70 g/tA$1,178
2017–18425,536 ounces0.71 g/tA$1,262
2018–19451,991 ounces0.72 g/tA$1,253
2019–20393,164 ounces0.90 g/tA$1,281
2020–21416,138 ounces0.89 g/tA$1,473
2021–22407,550 ounces0.73 g/tA$1,388
2021–22349,000 ouncesA$1,633

Copper

Annual copper production of the mine:

YearProductionGradeCost
2004–0525,000 tonnes
2005–0638,000 tonnes
2006–0728,000 tonnes
2007–0827,000 tonnes
2008–0932,905 tonnes
2009–1034,815 tonnes
2010–11
2011–12
2012–13
2013–1443,619 tonnes0.16%
2014–1523,119 tonnesna%
2015–1618,940 tonnesna%
2016–1720,136 tonnes0.14%
2017–1816,212 tonnes0.10%
2018–1915,025 tonnes0.09%
2019–2016,278 tonnes0.14%
2020–2113,177 tonnes0.11%
2021–2213,904 tonnes0.09%
2022–2317,000 tonnes

References

Bibliography

External links

Notes and References

  1. https://web.archive.org/web/20111127123147/http://www.abc.net.au/rn/talks/bbing/stories/s28534.htm The Golden Riddle: Finder's Keepers?
  2. http://www.intelligentinvestor.com.au/articles/Newcrest-Mining-Limited-NCM/Newcrest-s-Great-Sandy-speculation.cfm?articleID=10000844 Newcrest's Great Sandy speculation
  3. http://www.newcrest.com.au/about-us/history History – About us
  4. Web site: Full Year Results FY20 . Newcrest Mining . 24 June 2021 . Melbourne, Victoria . 7 . 14 August 2020.
  5. Web site: Annual Mineral Resources and Ore Reserves Statement - as at 31 December 2020 . Newcrest Mining . 24 June 2021 . Melbourne, Victoria . 11 February 2021.
  6. The Australian Mines Handbook: 2003-2004 Edition, page 128, accessed: 27 January 2010
  7. http://www.tnet.com.au/~warrigal/grule.html The Golden Rule
  8. News: Marco Zolezzi, general manager, Telfer gold mine, Western Australia . Australian Mining . 15 September 2004.
  9. http://www.newcrest.com.au//history.asp History of NCM
  10. News: Elsewhere in precious metals... the second phase of the development . Metals Week . 11 March 1991 . 8.
  11. News: Newcrest upbeat on Telfer mine . Reuters News . 21 June 1996.
  12. News: Newcrest cold on Telfer raising . . 25 March 2002 . 28.
  13. News: John . Phaceas . Newcrest nod to invest $1b in Telfer . . 20 November 2002 . 61.
  14. News: Newcrest gets expansion nod . ABC News . 20 August 2002.
  15. http://www.newcrest.com.au//operations.asp?category=6 Operations - Telfer
  16. News: Greg . Peel . Tantalising Telfer . FN Arena . 16 November 2007.
  17. News: Rebecca . Le May . Miner loses friends as Telfer costs jump . Finance . . 25 January 2008 . 62.
  18. News: Dionne . Thompson . Newcrest's Telfer gold output down 25,000 oz on Apache gas stoppage . Metal Bulletin . 27 June 2008.
  19. News: Telfer gas supply back to normal . . 19 August 2008 . 3 September 2008.
  20. http://www.theaustralian.com.au/business/mining-energy/newcrest-to-slash-mine-jobs/story-e6frg9do-1111117836793 Newcrest to slash mine jobs at its Telfer mine
  21. http://www.abc.net.au/news/2013-12-04/man-dies-at-newcrest-telfer-mine-in-western-australia/5135494 Worker killed at Newcrest's Telfer mine in WA north
  22. Web site: Newcrest Mining Quarterly Report June 2018 . www.newcrest.com . Newcrest . 19 April 2022.
  23. Web site: Newcrest Mining Quarterly Report June 2019 . www.newcrest.com . Newcrest . 19 April 2022.
  24. Web site: Newcrest Mining Quarterly Report June 2021 . www.newcrest.com . Newcrest . 19 April 2022.
  25. Web site: Newcrest Mining Annual Report 2021 . www.newcrest.com . Newcrest . 19 April 2022.
  26. Web site: Newcrest Mining Annual Report 2022 . www.newcrest.com . Newcrest . 19 April 2022.
  27. Web site: Newcrest Mining Annual Report 2023 . www.newcrest.com . Newcrest . 24 February 2024.