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Heavy rain affecting gold production at Newcrest's Telfer mine

Heavy rain from cyclone Kara has affected production at Newcrest Mining Ltd's flagship Telfer gold mine in the Pilbara, while oil and gas facilities off the coast remain closed.

Newcrest said production at Telfer and deliveries of copper concentrate to Port Hedland was being affected by continuing rain in the region.

"Mining operations in the open pit have been temporarily halted due to the wet weather, and in the underground mine as a precaution due to elevated water levels," Newcrest said.

"Milling of stockpiled lower-grade ore is continuing but at a reduced rate. "

All access roads to site, which have been closed for the past two days, are expected to remain closed for at least the next 72 hours.

Newcrest, Australia's largest independent gold miner, said Telfer had received more than 70mm of rain in the past 24 hours and more than 390mm of rain since the start of the month.

The gold miner said copper concentrate deliveries to Port Hedland had been halted due to road closure and would be stockpiled and transported once conditions permit.

Tropical cyclone Kara made landfall at 80 Mile Beach near the town of Wallal on the Pilbara coast at 5am (WST) today. The Bureau of Meteorology (BOM) said Kara had weakened to a tropical low and was expected to further deteriorate as it continued to move inland.

Newcrest shares shed four cents to $23.55

Telfer mine was expected to produce between 675,000 oz and 700,000 oz gold, and between 31,000 t and 33,000 t of copper for the year ending June 30. .