Newcrest Mining (ASX:NCM) has received approval to use the first 200 metres of the old Cadia Hill open pit as a tailings storage facility.
A partial dam collapse halted operations at the NSW mine last month.
The increased storage capacity will enable Newcrest to progressively return the mine to full production rates for around 16 months.
Newcrest says it will continue to look into the cause of the collapse.
The gold mining company plans to update its guidance in its quarterly report which will be releases on April 26.
Shares in Newcrest Mining (ASX:NCM) are trading up 1.95 per cent to $20.38.