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Newcrest's Cadia gold mine faces fresh probe for dust pollution (updated)

(Adds background in paragraphs 5 and 6, Newcrest's response in
paragraphs 7 and 8, and CCSN reaction in paragraphs 11-12)
    By Harish Sridharan
       May 22 (Reuters) - 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.     
    
($1 = 1.4743 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru; Editing by
Shailesh Kuber)
 ((Harish.Sridharan@thomsonreuters.com; Twitter: https://twitter.com/damnit_saladin;))

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