Newcrest to slash 400 jobs at WA mine

Newcrest Mining Ltd said it will cut 400 jobs at its Telfer gold mine in Western Australia as part of its cost reduction program.

In a conference call to analysts yesterday, chief executive and managing director Ian Smith said the job cut will be completed by December.

He said the cost reduction program at Telfer mine was on track to achieve a reduction in site costs of between $25 million to $30 million this financial year.

He added that the majority of cost benefits will flow through in the second half of this financial year.

Comment was being sought from Newcrest at time of publishing.

Gold production at the mine during the September quarter increased to 150,309 ounces from the previous quarter's 146,101oz.

The job losses follows Magellan Metals' announcement yesterday that it would lay off 18 people at its Wiluna lead mine while shipbuilder Austal Ltd has made 109 employees redundant.

Newcrest's share price dropped 23 cents to $16.78 at 15:19 AEDT.