Melbourne-based gold miner Newcrest Mining has axed 208 jobs in Papua New Guinea, as part of its cost-cutting initiative taken across all its operations.
The job cuts, which was carried out during January to March at its Lihir site, affected different positions. Additionally, it cut 32 vacant jobs at the site.
The move by the company came after it reported 11% fall in the production of gold in third-quarter, driven by maintenance work at its sites such as Lihir and Cadia East in Australia.
Additionally, the gold prices fell sharply by around 25% from 2013.
Newcrest Mining CEO Greg Robinson said Newcrest’s priority is now on bolstering cash flow, not maximizing production ounces.
As part of its cost-cutting program, Newcrest has controlled its spending in the last 18 months, which includes closing its Brisbane office in Queensland, Australia.
For Newcrest to sustain operations at Lihir costs AUD1,344 ($1,247.1) for one ounce, as against AUD875 ($811) an ounce for its Telfer mine in Australia, and AUD381 ($353.5) an ounce for its Cadia Valley site.
Robinson said the Lihir mine would be a focus for cash savings and productivity improvements in the period ahead.