Boddington Project

On 5 August 2005, Newcrest announced that it was considering divestment options for its 22.22 percent interest in the Boddington Expansion project.

At the end of 2001, mining and processing of oxide resources at the Boddington open pit gold mine ceased. Since that time the project has remained on care and maintenance as exploration activities continue.

The substantial bedrock resource beneath the depleted oxide pits forms the basis of the Boddington Expansion project. After reassigning management of the project to the jointly owned BGM Management Company Pty Ltd, a study team was set up in 2003 to update the feasibility study completed in 2000.

During the year significant progress was made on key aspects of mining, geology and ore processing. The Phase II study (pre-feasibility level) was completed in March 2005. The Phase III study (feasibility level) commenced early in 2005 and is due for completion in November 2005. A decision by the joint venture partners to proceed with the development is expected early in 2006.

Key recent project work includes:

• refinement of an updated process flow sheet
• preparation of detailed capital and operating cost estimates
• progress towards identification of a suitable EPCM (engineering, procurement and construction management) contractor with the objective of commencing early engineering design work
• identification of strategies to manage long lead items
• assessment and costing of the most appropriate mining fleet combination.

An active program of consultation with local communities has been progressing well.

On 5 August 2005, Newcrest announced that it was considering divestment options for its 22.22 percent interest in the Boddington Expansion project. Newcrest remains positive about the project’s future, but wishes to concentrate on the Company’s wholly- or majority-owned development projects. The sale process is not expected to delay the development decision for the project.

 

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