Newmont’s Telfer Gold Mine Faces Extended Shutdown Amid Tailings Facility Issues
Newmont's Telfer gold mine in Western Australia could remain shuttered until September due to significant issues with its tailings facilities. This marks the second production suspension at Telfer in less than six months. The complications arise as Newmont seeks to divest the aging mine, along with the nearby Havieron deposit, which is considered a crucial life extension for the facility.
The mine was first taken offline for eight weeks early in 2024 after workers discovered sinkholes at the waste facilities, leading to a halt in operations as the mill was banned from depositing processing waste into the tailings dams. Recent heavy weather has exacerbated the problems, leading to a re-emergence of issues at the tailings facilities, as reported by The Australian in April.
WorkSafe, the regional safety regulator, has issued two prohibition notices for the mine's two newest tailings facilities, TSF7 and TSF8, with the Chief Inspector of Mines, Tony Robertson, stating that the notices will remain in place until the company addresses the necessary safety concerns.
Newmont has paused milling operations since April 14 as it addresses these issues, though mining activities continue with ore being stockpiled. Telfer, operational since 1977 and having eight tailings dams, is currently utilizing only TSF7 and TSF8.
This latest incident comes at a challenging time for Newmont, following recent due diligence tours conducted for potential buyers. The ongoing issues underscore the potential costs and complexities for any future owner, especially as the latest reports from 2023 indicate historical stability and erosion concerns at TSF7 and the need for a comprehensive dam safety review for all facilities.
Last financial year, under Newcrest's management before its acquisition by Newmont, Telfer produced almost 349,000 ounces of gold. The necessity for possibly constructing a new tailings facility looms as a costly and extensive project, adding further complications to the mine's future operations and sale prospects. Meanwhile, Newmont shares closed up 29c to $62.31 on the Australian market this Monday, reflecting the ongoing investor attention to the company's broader portfolio despite challenges at individual sites.
