Newmont shelves gold mine expansion

Newmont Mining has put on hold a $400 million expansion of the Granites gold mine in central Australia.

Newmont had started on the expansion of its shaft at the mine in a bid to prolong the life of the operation.

However, Brian Watt from Newmont says new deposits have been found closer to the shaft, meaning the expansion does not need to go ahead straight away.

"What we're doing is reassessing the mine plan in order to get that easier gold," he said.

"So in one way it's difficult for the people impacted by the decision but on the positive it's great news for the mine itself in terms of its mine life and other things." Mr Watt says about 100 contractors working on the expansion will lose their jobs.

"We're going to reassess in 2015 where we are," he said.

"We're looking at how to access these newer extensions, these shallower extensions of the ore body and ...

without the shaft it's a mine life out to 2020."

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