The decision to suspend production at the Pilbara, Western Australia, mine will cost the company about $60 million in net write-downs and keep 1999-2000 profits at a modest level.

The remaining assets associated with ongoing projects have a book value of around $85 million.

“This [decision] is consistent with the company’s previously stated position that it will not continue to operate or develop mines which cannot provide acceptable financial returns,” the miner said.

On a brighter note for the company, production reached just under 1 million oz of gold in fiscal 2000, up from 710,000oz in 1999.

The shining stars in Newcrest’s crown are now its Cadia Hill mine in New South Wales and its Gosowong mine in the Halmahera Islands in Indonesia.

Production at Cadia Hill exceeded predictions at 300,000oz of gold and 25,000 tonnes of copper for total cash costs of $250-255 per oz.

Planning reserves at the mine also rose to 4.5Moz of gold from 3.5Moz, and to 340,000t of copper from 290,000t.

Gosowong produced 202,000oz of gold to March. The company says it is a great success despite Indonesia’s troubles.