by Paul Hayes
Newcrest Mining may become a player in the world tungsten market after revealing what it has called a deposit of ?world significance.?
Speaking at the release of the company?s June production report, Newcrest director Ian Smith said that the resource estimate for the O?Callaghans tungsten deposit near its Telfer gold mine in Western Australia is around 60 million tonnes.
The discovery will be of particular interest in China.
With up to 60% of the world?s tungsten resources China is the dominant player in the global market and may bid for the O?Callaghans deposit to maintain its standing.
According to Smith, Newcrest is open to taking advantage of the situation and the company is already in talks with companies in China who are very interested in O?Callaghans.
?There is no shortage of people interested in what is a world-class deposit outside of the control of the country that now dominates that whole industry,? Smith said.
?Some of the companies to have shown interest have also been from Japan and northern Europe.
?What we are confident of is that we are sitting on a pretty important and strategic resource.?
Newcrest also reported its June quarter gold production was 397,826 ounces, up 9% on the previous quarter, but down from 435,120 ounces a year earlier.
The production results took the company?s annual gold output to 1.63 million ounces for the financial year, which remained in line with previous guidance of 1.62 million ounces.