Newcrest expects production costs to fall and copper production to increase

Australia's Newcrest Mining Co., Ltd. said Monday it expects its production costs to halve over the next decade and expects copper production to increase.

The miner updated the market for four growth projects, including the Canadian Red Chris business it purchased in 2019, its Havieron gold project in Western Australia and the expansion of Lihir in Papua New Guinea and Khatthiya, Australia.

Newcrest expects to produce about 2 million ounces of gold a year until at least 2030, while overall maintenance costs are expected to fall by more than 50% to less than $500 an ounce, in part because of the production of copper as a by-product.

Australia's largest gold miner produced 2.1 million ounces of gold in fiscal year 2020.

The company said it expected copper production at its Australian and Canadian mines to jump 37 per cent from current levels to about 175000 tonnes by the end of the decade, increasing its exposure to growing copper demand for green energy.

"although Newcrest is mainly a gold company, we will continue to hold large and growing amounts of copper, which we believe has compelling growth prospects," said Sandeep Biswas, chief executive.