The Papua New Guinea (PNG) Mining Advisory Committee will recommend an extension to St Barbara’s Simberi mining lease.
In the final stages of what has been a 10-month process for St Barbara, the committee is now preparing extension documents and its positive recommendation for review and sign-off by PNG Mining Minister Rainbo Paita.
While special mining leases require approval of the wider PNG National Executive Council, the Simberi mining lease extension only requires approval from the minister.
The recommendation for the lease to be extended until 2038 is in line with St Barbara’s expected mine life for the Simberi expansion project, based on proven and probable ore reserves. These were updated in May after a pre-feasability study confirmed a likely 13-year mine life with total production of 2.2 million ounces of gold.
St Barbara managing director and chief executive officer Andrew Strelein said the lease extension was a crucial part of the expansion project, which has the potential to significantly increase gold production at Simberi.
“Our sincere thanks are again expressed to the managing director of the Mineral Resources Authority and his team in progressing our application with the Mining Advisory Committee,” he said. “We also thank the Committee for its resolution to recommend the grant of an extension of the Simberi mining lease.
“The renewal is a key step towards unlocking the sulphide ore reserves and expanding gold production to over 200,000 ounces per annum.”
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