Newmont has temporarily ceased operations at the mill of its extensive Telfer mine in Western Australia due to safety issues related to the mine’s tailings facilities.
The Australian reports that the Telfer mill might be non-operational for up to six weeks following the discovery of structural concerns at the mine’s latest tailings facility just before Christmas.
The company confirmed the shutdown on December 24, attributing it to the detection of “cracking and seepage” on an internal embankment between the mine’s newest and older tailings facilities. This has led to a pause in gold production at Telfer until a safe method for waste disposal is established.
Newmont initiated an emergency response, including area closures and extensive analysis using radar and drone technology. Telfer, operational since 1977, has eight tailings dams, with only two currently active.
On January 6, 2024, Newmont received approval from its Engineer of Record for the stability of both active tailings storage facilities, enabling work on one of them as a step towards resuming operations. The company is also developing a comprehensive plan for tailings deposition, including remediation options for the affected facility.
Previously operated by Newcrest Mining until Newmont’s $26 billion acquisition, Telfer has faced historical issues with its tailings facilities. The WA Department of Mines, Industry Regulation and Safety has issued prohibition notices to Newmont, demanding repairs to the tailings storage facility.
Despite the structural weakness between the two dams posing minimal risk to worker safety, it significantly impacts ongoing operations due to potential capacity reduction and the need for a new containment facility.
Newmont might not resume mill operations until the end of January or longer, with a potential eight-week halt. Under Newcrest’s management, Telfer produced nearly 349,000 ounces of gold last year. Newmont is reviewing the future of these assets, considering Telfer’s strategic importance in the Paterson district and its proximity to the Havieron joint venture.
Following these developments, Newmont’s stock fell by $2.61, or 4.4%, closing at $57.19 on Wednesday.
