Wednesday, 23rd April 2008 (347 views)

Gold producer Newcrest Mining has announced that it is to invest $525 million (£267 million) into the development of gold mines in Papua New Guinea.

The news comes as part of a growing trend in mining exploration in old or difficult areas, as companies try to exploit gold from dwindling reserves.

It is interesting to some that the company has chosen to mine in Papua New Guinea, as the country has seen landowner issues and conflict between national and provincial organisations in recent times, according to The Age.

Newcrest Mining announced yesterday (April 22nd) that it expects its gold output for 2008 to be lower than was previously forecasted.

The Age also reports that there has been speculation of a takeover bid for Newcrest, due to the fact that the company has been spending large amounts of money on exploration while making relatively few returns.

According to the company, it is committed to sustainability, with public reporting said to be a fundamental part of this obligation.

 

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