By Mathew Murphy
AUSTRALIA'S recent wet weather and the suspension of operations in Africa have forced Newcrest Mining to downgrade its forecast full-year copper and gold production
Australia's largest gold producer said gold production for 2010-11 had ''tightened'' to a range of 2.85 million to 2.95 million ounces, down from guidance of between 2.85 million and 3 million ounces. Copper production will also take a hit, as guidance for the 2011 financial year is reduced from the previously advised range of between 80,000 and 86,000 tonnes to between 75,000 and 80,000 tonnes.
December rainfall meant Newcrest's Cadia Valley gold operations near Orange, New South Wales, produced 18,000 ounces less than expected as access to the high-grade area in the open-cut mine was obstructed.
Newcrest also suspended operations at its Bonikro mine in Ivory Coast as a precaution to ''ensure the safety and security of employees following elections in the country''.
The Cracow and Mount Rawdon mines in Queensland experienced a small drop in gold production of a combined 3000 ounces.
''The impact on group production during the December quarter was 28,000 ounces (rainfall 21,000 ounces and Bonikro 7000 ounces),'' Newcrest said. ''Continuing impacts are expected in the March quarter from the Cadia Valley rain and at Bonikro.
Preparations had begun for resumption of production at Bonikro, the company said.
While production at most of its operations was affected, Newcrest still recorded a 7 per cent jump in gold production in the December quarter to 722,783 ounces from 674,219 ounces in the previous three months.
Copper production also posted a small increase at 17,712 tonnes in the three months to December 31, compared with 17,693 tonnes in the September quarter.
Newcrest also advised that its mineral resource at the West African operation had been upgraded from 1.2 million ounces to 2 million ounces.
Higher commodity prices helped, with the company achieving a gold price of $1384 an ounce, up slightly from $1338 an ounce in the September quarter. Copper was also higher at $3.87 a pound, compared with $3.58 a pound in the previous quarter.
Newcrest shares rose 59¢, or 1.6 per cent, to $37.62.