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Newcrest to take hit from dam wall breach

 

Cadia owner Newcrest will take a financial hit from the dam wall breach at the NSW goldmine, but says it is still too early to say how much it will be.

Production at Newcrest's largest and lowest cost mine was halted at the weekend following a breach at the tailings dam, but the company on Monday said it cannot yet estimate how much the closure and clean up will cost.

"Whilst it is too early in the evaluation and recovery process for Newcrest to provide an indication of the extent to which FY18 production, capital and cost guidance will be impacted, this event will adversely impact guidance," Newcrest said in a statement.

"Further updates will be provided to the market when available."

Shares in Newcrest dropped 95 cents, or 4.4 per cent, to $20.64 in the first 10 minutes of trade on Monday.

Newcrest's first-half profit - announced last month - dropped by half as a result of an earthquake that halted production at Cadia for three months last year.

Newcrest on Monday said there has been no further movement in the dam wall since late Friday.

The miner said it does not use substances such as mercury, cyanide and arsenic at the site, which is 25km south of Orange in Central West NSW, and that it is in contact with landowners and residents downstream of the tailings facility.

Newcrest managing director Sandeep Biswas, said the miner was still plotting a recovery plan.

"The safety of our people and the community, together with the highest standards of environmental compliance, are paramount and remain our focus as we investigate," Mr Biswas said.