Newcrest’s Cadia Gold Mine Faces Fresh Probe for Dust Pollution

SEATTLE (Scrap Monster: Newcrest Mining Ltd's (NCM.AX) Cadia mine in Australia's New South Wales (NSW) state is facing a fresh investigation over emission of dust and other pollutants, the state's Environment Protection Authority (EPA) said on Monday.

Cadia is Newcrest's flagship goldmine and the investigation comes nine months after the country's biggest listed gold miner was fined a maximum penalty of A$15,000 for dust pollution.

Newcrest is currently the subject of a A$26.2 billion ($17.77 billion) takeover offer from Newmont Corp (NEM.N).

"The industry has strict obligations to meet clean air standards and currently Cadia appears to be falling well short of our expectations," said NSW EPA Chief Executive Officer Tony Chappel.

"Last week, the EPA received new evidence from the community to suggest actions by the mine to reduce dust pollution have not been effective."

In March, Cadia Community Sustainability Network (CCSN) - a residents' group based in Orange, New South Wales said they along with a researcher from Western Sydney University recently identified some heavy metal contamination, particularly in the bottom of residential rainwater tanks around the district.

Reports from local media say that test results of residents living near the mine show they have high levels of selenium, nickel and lead in the blood.

Newcrest said it remains firmly committed to making sure that statutory obligations are met.

"We take our environmental obligations and the concerns raised by some members of the local community seriously," said acting Cadia General Manager Mick Dewar.

The EPA has also written to the NSW Chief Health Officer requesting a full health risk analysis to determine if mine dust is impacting the health of the community.

NSW Health did not immediately respond to a Reuters request for comment.

In a Facebook post on Monday, CCSN said they welcome the EPA's move to investigate concerns about heavy metal contamination of tank water around the region.

"This is a solid start to ensuring our homes and families are safe, with plenty more to be done," it said.

Cadia has until May 23 to respond to the EPA's latest investigation.

Courtesy: www.reuters.com