Newcrest Mining Ltd. (NCM), the worst performer this year among Australia’s 50 biggest stocks, plans to cut staff and contractors at its Telfer mine as part of a review of its operations prompted by falling prices.
The company is holding talks with 1,800 workers at Telfer in Western Australia and hasn’t finalized the number of job cuts, Jason Mills, a spokesman for Melbourne-based Newcrest said in an e-mailed statement.
“Over the coming months Telfer will reduce the level of mining activity across the operation, which means an associated reduction in the number of employees and contractors required to support the operation,” Mills said.
Newcrest said last month it’s cutting spending, suspending high-cost operations and closing its Brisbane office when flagging it expected to take a charge of as much as A$6 billion ($5.5 billion) for fiscal 2013. Similar reviews are being carried out at the company’s six operating mines in Australia, Papua New Guinea and the Ivory Coast, Mills said.
“Like all of our sites, Telfer is reviewing its operating plan with a focus on only producing profitable ounces, lowering costs and enhancing productivity to ensure it is cash flow positive,” Mills said. The cuts are necessary amid the slump in gold and high operating costs in Australia, he said.
Newcrest, which now has a market value of A$7.9 billion after slumping 54 percent this year, said June 15 that it would cut as much as 7 percent of the 2,500 workers at its Lihir mine in Papua New Guinea.
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