Newcrest

Location: Prince George, British Columbia
Commodity: Copper / Gold
Project Phases: Pre-Feasibility Study, Feasibility Study, Early Works, Construction Execution

Client Overview

Newcrest Mining Ltd., the largest gold producer listed on the Australian Securities Exchange, is globally recognized for its deep technical expertise in underground mining, particularly block caving. At its Red Chris facility in northern British Columbia, Newcrest launched a major underground development initiative to transition the site into a world-class, long-life block cave operation.

The project scope included a new underground mine, expansion of existing flotation capacity, and the installation of a Semi-Autogenous Grinding (SAG) Mill and High-Intensity Grinding (HIG) Mill to support increased throughput. Red Chris represents a critical pillar in Newcrest’s North American growth strategy.

TMG’s Contributions

TMG played a key role in advancing the Red Chris Block Cave project from study to execution, providing integrated support across planning and delivery disciplines:

• Owner’s Team Support: TMG seconded experienced professionals into the project team, contributing to project management, procurement, cost control, planning, and scheduling functions throughout the Pre-Feasibility and Feasibility phases.
• Construction Execution Oversight: TMG led site-based construction management for Early Works and surface infrastructure, overseeing accommodation, utilities, and initial development works with a focus on schedule adherence and safety.
• Project Controls: TMG established and maintained comprehensive cost and schedule frameworks to drive execution predictability and informed decision-making across all project phases.
• Procurement & Contracting: TMG managed procurement processes and supported contracting activities for major engineering services, equipment supply, and construction execution.
• Organizational Alignment: Through leadership alignment and change management strategies, TMG supported Newcrest in preparing its teams and systems for the shift to underground operations.

Results

The partnership between Newcrest Mining Ltd. and TMG led to clear execution advantages during critical project phases:

• Schedule Acceleration: Early Works were completed 27 days ahead of schedule, contributing an estimated $9 million in added Net Present Value.
• Capital Efficiency: More than $66 million in savings were secured through:
  • $42.8 million from scope optimization and deferred capital expenditures.
  • $23.9 million cost underrun on the underground mining contractor agreement.
• Procurement Optimization: Transitioning to a turnkey OEM accommodation strategy avoided $25 million in projected costs.
• Design Integration: Shared infrastructure design and systems optimization achieved $5.3 million in savings.
• Execution & Logistics Savings: $133,000 in cost reductions were realized through execution efficiencies, including:
  • $86,000 underrun on TMG service delivery.
  • $47,000 from improved truck fleet planning.

Execution Outcomes

The Red Chris Block Cave project exemplifies the power of strategic execution backed by embedded expertise. TMG’s integrated approach enabled Newcrest to reduce risk, increase delivery speed, and improve capital efficiency, while laying the groundwork for full-scale underground operations.

This case study highlights the importance of disciplined project controls, early alignment across stakeholders, and agile procurement strategies in achieving operational success in complex mining developments.