Tag Archives: Harmony Gold

K18.7 billion gold, copper mine to begin work soon

Malum Nalu | The National aka The Loggers Times | September 8, 2017
The US$6 billion (about K18.7 billion) Wafi gold and copper mine in Morobe will begin work this year, says Deputy Prime Minister and Treasurer Charles Abel.
Wafi is one of the major resource projects that the ministerial economic committee, through the new national energy authority, will drive in the 25-point 100-day plan,  others being the PNG LNG Project, Papua LNG Project and Western LNG.
“Early works (are set to begin) on the Wafi-Golpu US$6 billion gold and copper project over in Morobe,” Abel told NBC Talkback Radio yesterday.
“All they want is some assurance around fiscal stability that there’s to be no sudden changes to the fiscal regime.
“They are not asking for any concession.
“They just want to know that this is the regime and it will not be changing dramatically.
“They will begin early works this year.
“That early works includes digging down so that they can drive in under that ore body because it’s a block-cut mine where you cut from underneath.
“That’s going to involve spending of significant amounts of money.
“They’re just looking for some assurance.
“That money will be spent to create jobs and economic activity; going forward, a lot of revenue for the country also.”
Abel said the 100-day plan included bringing Wafi and other major resource projects online.
“There are a number of projects that we’ve been talking about for some time now,” he said.
“I’m just trying to focus down on them to get them across the line, stimulate investment, bring in jobs and create foreign exchange.
“They are private sector-driven projects, but they are also concessional financing and aid-type projects.
“We’ll run through and see which are the easy-win projects that we can bring across the line.”

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Landowners Plan To Block Hidden Valley Mine Road

Bradley Mariori | Post Courier | September 5, 2017

Landowners of Hidden Valley in Bulolo District, Morobe Province are planning to block off roads leading to the mine site today.

This is in response to what they termed as the unfavourable response to their demands which they presented in a petition last Thursday.

The landowners walked out of the meeting with the mining company and decided to take action to get the attention of the government.

The petition by the landowners lapsed on 26th August.

Their demand was for the mining company to review all contracts and give landowner companies greater opportunities to participate in contracts and other spin off benefits to come off from the mine development.

The contracts include labor hire, transport hire, bus services, fuel cartage, general cargo, waste management, environment monitoring and rehabilitation, travel agency, boiler shop contract, crusher contract, camp services and maintenance, heavy equipment (assembling and dismantling), security, catering services, and all contracts given to non landowners including foreign companies be given direct to landowner companies

Landowner spokesman, Andrew Kupa of Seproku Limited said they walked out of the meeting with Harmony Mine because their demands were not met.

“We have given them 14 days to respond to our demands and they have not responded in our favor or responded according to the memorandum of agreement we signed,” Mr Kupa said.

“It will be a peaceful demonstration by blocking the road and we will get those people in higher authorities to come down and address these issues.

“In the last seven years, we have not been benefiting from NKW which Harmony Gold said is a landowner company.

“Contracts coming to the little landowner companies are the way to go about and not NKW as an umbrella company which does not benefit us.

“It’s a matter of giving us contracts and everything will go back to normal,” said Mr Kupa.

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Filed under Financial returns, Human rights, Papua New Guinea

Harmony Gold achieves fatality free quarter in SA and Papua New Guinea

Harmony Gold Mining’s Kusasalethu mine in South Africa

If a fatality free quarter is a ‘milestone’, how many deaths are normally recorded?

Harmony Gold Mining has announced that its South African and Papua New Guinean operations achieved a milestone fatality free quarter during the June 2017 quarter.

Mining Review Africa | 14 July 2017

Harmony gold’s gold production for the 30 June 2017 financial year is estimated to be 1.088 million oz, which exceeds production guidance of 1.05 million oz. Underground recovered grade increased for a fifth consecutive year to 5.07 g/t.

“We will continue to focus on increasing cash margins through safe, predictable and profitable production” says Peter Steenkamp, CEO of Harmony.

Harmony will announce its operating and financial results for the year ended 30 June, 2017 on Thursday 17 August 2017, during a live presentation at the Hilton Hotel, Sandton, at 09h00 South African time.

In October last year Harmony Gold completed the acquisition of Hidden Valley mine in Papua New Guinea.

The Hidden Valley mine is an open pit gold and silver mine, jointly owned and managed as part of the joint venture between Harmony and Newcrest Mining.

The mine is situated in the highly prospective area of the Morobe province in Papua New Guinea, some 210 km northwest of Port Moresby.

The major gold and silver deposits of the Morobe goldfield and Hidden Valley are hosted in the Wau Graben.

The Hidden Valley-Kaveroi and Hamata pits, located approximately 6 km apart, are in operation.

Ore mined is also treated at the Hidden Valley processing plant.

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Harmony pins its hopes on Hidden Valley

Harmony Gold CEO Peter Steenkamp. File picture: Simphiwe Mbokazi

Harmony Gold CEO Peter Steenkamp. File picture: Simphiwe Mbokazi

PNG gold to make South African company rich while Morobe people continue to suffer…

Kabelo Khumalo | Business Report | 3 February 2017

Harmony Gold is pinning its growth hopes on its newly acquired Hidden Valley mine and is prowling the market for big acquisitions as most of its South African operations were nearing the end of their production lifespans.

It would focus on Hidden Valley, as its other mines in Masimong, Kusasalethu, Unisel and Bambanani were left with less than five years of mining.

Chief executive Peter Steenkamp said on Thursday, besides actively pursuing assets, the company had a solid plan for Hidden Valley. He said Harmony planned to produce 180 000 ounces of gold a year for seven years at the mine to achieve a total production of 1.5 million ounces a year across the group in two years time.

Last year, the company bought 100 percent of Hidden Valley, a gold and copper project in Papua New Guinea, after buying out its partner, Newcrest Mining, Australia’s biggest gold producer for $180 million (R2.42 billion). The company previously had a 50 percent stake in the Papua New Guinea mine.

Steenkamp said the company would focus on strong operational performance and create further value.

“Our operations – both in South Africa and Papua New Guinea – are maintaining their momentum and we believe our annual guidance of approximately 1 050 000 ounces of gold at a price of about $1100/oz is achievable.”

Steenkamp added that Harmony revenue, including the gold hedge for the six months ended December, increased by 3 percent to R9.8 billion.

He said the group’s total production profit decreased to R2.4bn in the period from R3bn from the comparative one. The company said it realised R233 million in profits from the gold hedge while group headline earnings increased to 150cents, up from the 100c from the comparable period.

 Steenkamp said the company reduced its net debt from R1.1 billion to R289 million at the end of December. He said the company would take a measured approach as it scours the market for acquisitions and would refrain from overpaying for its targeted assets. Harmony declared an interim dividend of 50c, its first since the six months to the end of 2012.

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Hidden Valley LO association urge Govt to sign revised Mining Act

Peter O'Neill announced his government's climb down in Sydney

Peter O’Neill announced his government’s climb down over the Mining Act in Sydney

Post Courier | December 15, 2016

THE government has been called upon to review their decisions and sign the revised mining act for implementation.

Hidden Valley’s Nakuwi Landowners Association president Rex Mauri said this yesterday following the announcement by Prime Minister Peter O’Neill during the mining conference in Sydney, Australia, recently to defer the revised mining act.

“We the landowners from Hidden Valley are appealing for Prime Minister Peter O’Neill and Mining Minister Byron Chan to review the decision,” he said.

He said Mr O’Neill had announced during the mining conference that the revised mining act will be deferred until after the 2017 General Election.

“This is a slap in the face for landowners, contributing individuals and entities efforts’ in compiling the act.

“This revised mining act is vital because once it is signed, then the benefits rollout will surely reach the affected host project communities and all stakeholders in the country.

“However, it is very frustrating and the deferral indicates that the PM is serving the interest of the developer and not the landowners of PNG.

“I have been actively involved in the operation of Hidden Valley mine for almost 34 years, yet I don’t experience any tangible developments occurring in affected communities of Morobe Mining Joint Venture, and the living standards of the people are still low,” Mr Mauri said.

He claimed that the gross payment of the mine is divided as two per cent belonging to the landowners which is shared among the national government, provincial government, local level government and landowners, while the developer is enjoying 98 per cent. Mr Mauri said that these are some issues that are highlighted and amended in the new revised mining act so the political leaders in mining provinces must support the call and raise their voice about the decision and ensure the mining act is signed and ready for implementation.

“We cannot drag this on as operations are continuing every day and changes are happening to our environment. Let us all voice our concern to ensure we benefit fully.”

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Filed under Financial returns, Papua New Guinea

How the international financial vultures view Papua New Guinea

vultures

Lenders flag policy, infrastructure challenges to PNG mines

  • Need for ports, power, roads raises costs
  • Chinese banks boost miners’ access to money
  • Miners fear security risks, lenders undaunted

Sonali Paul | Reuters | 8 December 2016

Planned changes to Papua New Guinea’s mining laws are creating uncertainty ahead of an upcoming election, despite strong interest in proposed multibillion dollar mining and energy projects in the Pacific nation, lenders and advisers say.

The quality of the copper, gold and gas resources in the country mean there is appetite to lend to projects including Total SA’s Papua liquefied natural gas project, Guangdong Rising Assets Management’s (GRAM) Frieda River and Newcrest Mining and Harmony Gold’s Wafi Golpu copper and gold mines.

However Australia and New Zealand Banking Group and Credit Suisse bankers said uncertainty over elections in mid-2017 and proposed government mining and energy policies may affect the size and pricing of loans.

Planned changes include shortening mine leases to 25 years from 40 years, giving the state the right to acquire a project for half its sunk cost after the first phase, an increase in royalties to 3 percent and a doubling of the production levy to 0.5 percent.

PNG Prime Minister Peter O’Neill told a conference in Sydney he would not go ahead with any changes to the mining law ahead of national elections in June 2017, and would await a new mandate in parliament.

But the uncertainty is putting pressure on the nation’s sovereign rating, which would affect lending terms.

“When we assess the risk and when we assign risk ratings to projects, to the extent that the sovereign rating is under pressure or downgraded, ultimately that translates to a higher cost of funds to the borrower,” said ANZ’s head of mining and resources infrastructure project and export finance Wai Mun Lum.

The PNG Chamber of Mines and Petroleum has warned that the proposed mining law changes could make the Frieda River and Wafi Golpu projects unviable.

INFRASTRUCTURE CHALLENGES

The main attraction of Papua New Guinea is the sheer size of the deposits, which are tucked away in remote, mountainous regions with limited infrastructure.

“I talk to investment banks, and they’re all keen to remain on top of what’s happening in PNG. They see the opportunities, and they’ll all be there,” said Anthony Latimer, a partner at law firm Norton Rose Fulbright on the conference sidelines.

But in a country where the only airport with runway lights is in the capital, Port Moresby, lack of infrastructure poses a big challenge. For a company like ExxonMobil building the $19 billion PNG LNG project, a mammoth four-year task which it likened to constructing on the moon, that was doable.

ANZ’s Lum said for smaller companies like GRAM’s PanAust looking to build the Frieda River mine, it would be a bigger challenge to fund port and power facilities and an air strip.

However where western bankers fear to tread, China’s big banks are pouring in, bankers and advisers said.

“The recent joint venture between Zijin and Barrick for Porgera (gold mine) is going to be very good for PNG,” said Graham Smith, associate director of mining M&A at KPMG.

“We’re seeing the Chinese banks have a very different risk appetite than some of the western banks for jurisdictions such as PNG, as well as lower debt costs generally.”

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Zifasing community dispute MMJV claims of consent to Wafi-Golpu pipeline

harmony

newcrest

The Zifasing people in Morobe Province are accusing Harmony Gold and Newcrest Mining of lying over claims (see media story below) they have consented to the laying of a pipeline and access road for the Wafi-Golpu mine across their land. 

Kenn Mondiai

Another TWISTING of the TRUTH by the use of the Media !!!

The MAJORITY of the Zifasing Clans & Community never attended the MRA Warden’s Hearing on the 23/11/2016 (13:00pm) at Zifasing Ward 19 Wampar LLG regarding SML for Wafi Glopu to give their approval, they never agreed to the access road or the pipeline passing through their land. 

The gazetted location was “Zifasing Community Hall”, but there is no such place at Zifasing. The common and known traditional meeting place at Zifasing is the Community Meeting Place in the centre of village under the mango trees.

Instead the Warden’s Hearing was held outside and away at a Hall build by politicians far from the village centre (traditional meeting place) with a few people without ALL CLAN LEADERS & WARD 19 COUNCILLOR.

The Mining Advisory Council (MAC) should know the TRUTH !!!

Community agrees to pipeline proposal
Pisai Gumar | The National aka The Loggers Times | 25 November 2016
THE Zifasing community in Huon Gulf, Morobe agreed this week to let Morobe Mining Joint Venture (MMJV)* build an access pipeline through their land.
The pipeline from the interior Wafi-Golpu project site is anticipated to cross over the Watut and Markham rivers and run through clan land in Wampar before reaching the Lae main wharf.
Based on an MMJV mining engineering plan and the Mining Act section 108, Special Mining Lease (SML) 10 caters for mining easement 91 (ME 91) pipeline and mining easement 93 (ME 93) northern access road.
Zifasing village land mobilisation chairman Nathan Aquila told Chief Mining Warden Andrew Gunua and MMJV community affairs manager David Masani said that the entire community agreed to this pipeline proposal.
Aquila also asked whether it would be possible for MMJV to build a pump station on customary land instead of the Markham Farm, which was a State lease. Masani told Aquila that the decision to build a pump station was based on the mining engineering plan but the nature and magnitude of the operation at Wafi-Golpu would determine if there would be need be expand onto customary land in future.
Gunua and Kevin Gamenu from the Mineral Resources Authority (MRA) are conducting the warden hearings with landowners at Yanta and Hengabu from Mumeng, Bulolo, Babuaf and others anticipated to be impacted by the mine pipeline and access road.
Masani told the villagers that the 32 km road would start from the interior project site and cross the major Watut and Markham rivers as well as the three small creeks.
Meanwhile, Saab-Babuaf clans from Mare and Chiatz villages interjected and raised concern over the course of the pipeline from Wafi across Watut.
They said the pipeline would encroach on their land so they would like to know the full extent of the environmental impacts.

* Harmony Gold and Newcrest Mining are the owners of Morobe Mining Joint Venture

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