Newcrest Mining warns that the Australian government’s proposed carbon tax threatens the wellbeing of gold producers.
Newcrest claims the tax would reduce its net profit by up to three per cent a year for three years, mainly due to increased energy costs.
Speaking at the company’s annual general meeting, Chief executive Greg Robinson said it was fortunate 40 percent of the company’s operations were offshore- mainly in Papua New Guinea and Indonesia.
Robinson was upbeat about the Wafi-Golpu joint venture with Harmony Gold in PNG, which he says would underpin Newcrest’s growth from 2015-16. If it proceeds, Wafi-Golpu will be Newcrest’s biggest metal inventory.
The company is also expanding at its Lihir project in PNG.
Visit the Newcrest Mining website for a full transcript of the AGM address.