Australia’s major Newmont mine Cadia, halted after an earthquake

Underground operations at Newmont’s Cadia gold mine in Australia, one of the country’s largest mining operations, have been suspended for the second time in nine weeks after two earthquakes rocked New South Wales on Friday, according to an Australian Broadcasting Corp. report. All underground personnel were safely returned to the surface, and no injuries were reported. The second quake occurred 1 km underground, and inspections are being carried out on the site.

Cadia accounts for about 11% of Newmont’s net asset value. Newmont gained full control of the operation in November 2023 when it completed the $19 billion acquisition of Newcrest Mining. Friday’s earthquakes follow a 4.5-magnitude event at Cadia on April 14, which led Newmont to suspend underground mining for about five weeks. No significant damage was reported. 

Cadia produced about 385,000 oz. of gold and about 82,000 tonnes of copper last year. The mine is approved to continue operations until 2031, though mineral resources have been identified for production up to at least 2048. Commercial production at the Cadia East underground mine began in 2013 using large-scale panel caving methods.

Newmont shares fell 6.7% to A$143.47 on Friday in Australian Stock Exchange trading, valuing the company at about A$111 billion ($78 billion). The US stock markets were closed for Juneteenth National Independence Day.