By Ross Louthean, Mineweb.com
Newcrest Mining Ltd (ASX: NCM; OTC: NCMGF) has received approval to develop the Cadia East project at its Cadia mining operations in northern NSW - a development expected to cost A$2 billion (US$1.83 billion).
The company which is Australia's dominant domestically-owned gold producer has had Cadia East under blueprint as its next mining step at the mining centre which produces most of NSW's gold.
NSW Premier Kristina Keneally and Planning Minister Tony Kelly were in the Cadia Valley today to announce the government approval.
Newcrest's general manager Cadia Valley Operations, Tony McPaul, said that receipt of planning approval was a critical next step in the project which was now expected to be considered by the Newcrest Board around the end of the first quarter in 2010 "after remaining regulatory approvals have been finalised."
"If approved by the board, the Cadia East project will be the largest underground mine in Australia and will secure our future in the region for at least the next 20 years," McPaul said.
It will be Newcrest's first panel cave, building on our expertise in underground mining.
He said Cadia East will mean significant ongoing direct and indirect employment and economic activity for the region. At the peak of construction about 1,300 employees will be required.
"We are delighted that the extensive environmental impact studies and community consultation process has culminated in the awarding of approval," he added.
Newcrest was now ranked as Australia's largest gold miner - ahead of Barrick Gold and Newmont Mining Corporation -- and third largest mining company.
The company has seven operating mines in Australia, Indonesia and Papua New Guinea and has a market capitalisation of over A$18 billion (US$16.47 billion).
Newcrest Mining cements position as Australia's leading gold producer
Last updated: 17:41 08 Jan 2010 GMT, First published: 18:41 08 Jan 2010 GMT