Tag Archives: Hidden Valley

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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MOAs for mining projects set to go before NEC

mra

Post Courier | December 23, 2016

SEVEN of the memorandum of agreements (MOA) for the mining projects in the country have been completed and will be submitted to the National Executive Council (NEC) for approval in January, 2017. This is from the Mineral Resources Authority (MRA) while giving an update on the status of these agreements.

Each of the operating mining projects have in place an MOA that sets out the benefits sharing arrangements between the National Government, the host provincial and local level governments and the immediate mine area landowners. The MOAs are reviewed periodically as agreed by the stakeholders.

Those completed are for the Ramu mine in Madang Province, Simberi (New Ireland), Hidden Valley (Morobe), Ok Tedi (Western Province), Tolokuma (Central) and Sinivit (East New Britain). MRA’s managing director Philip Samar told the Post-Courier that once they have been approved by the NEC, the actual signing ceremony will be held at each of these project sites.

“This is to allow the project stakeholders to witness such an occasion,” Mr Samar said.

Also completed is Woodlark in Milne Bay, which is one of the two new approved mining projects. He said the review process for Porgera, Lihir and Crater Mountain are yet to be completed. The current exercise will continue in 2017 along with the country’s first ever deep sea mine – Solwara-1.

Mr Samar said this will be the first time that any government has submitted more than one revised MOA in the last 10 years.

He said one of the improvements that the MRA is embarking on to improve is administration and transparency of the revised MOAs by making allowances for autonomous parties to administer each of them, and to facilitate annual meetings where the independent auditor presents the implementation scorecards for each of them.

“This way all parties will be held to fully account for the implementation of their commitments on an annual basis,” he said.

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Chan calls for changes to PNG Mining Act before polls

Governor of PNG's New Ireland Province, Julius Chan. Photo: RNZI/ Peter Kinjap

Governor of PNG’s New Ireland Province, Julius Chan. Photo: RNZI/ Peter Kinjap

The Governor of Papua New Guinea’s New Ireland province has come out in support of calls for changes to the Mining Act before next year’s elections.

Sir Julius Chan, who is a former PNG prime minister, said he backs statements by Hidden Valley’s Nakuwi Landowner’s Association that citizens should have more ownership of mineral extraction operations.

The association is frustrated at long delays to a revised agreement regarding the Newcrest’s Hidden Valley mine in Morobe province that would guarantee landowners and local communities more benefits.

In recent years elements of the government have indicated the Mining Act could be modified to give landowners more control of the wealth from mining.

However, speaking at this month’s PNG Mining and Petroleum Investment Conference in Sydney, the prime minister Peter O’Neill ruled out any changes to the Act before the 2017 elections.

The Mining minister Byron Chan echoed this.

But Mr Chan’s father, Sir Julius, said PNG people have suffered for too long under a Mining Act that literally steals the wealth from their land.

He said that the level of royalties which mining companies pay in PNG compared to overseas “completely screws the landowners and provinces”.

“Our people are getting almost nothing from the huge amount of wealth coming from their ground,” he complained. “It all goes to the company and the National Government, and none of it comes back to the people.”

Sir Julius criticised the O’Neill government for reneging on various promises made to him in return for his party’s support for the formation of the coalition in 2012.

This included commitments on renegotiating the Memorandum of Agreement for the Lihir Gold Mine in New Ireland.

“Government has dragged its feet for literally four years, ever since 2012 when the MoA came up for the regular five-year review,” he explained.

“National Government should be protecting the rights and the interests of the landowners and people, but instead it just delays and acts as the stooge for the Mining companies. This has to stop “

The New Ireland governor said his administration fully supported the Nakuwi Landowners in their intent to shut down the Hidden Valley Mine unless government signs a new MoA.

Sir Julius said it is time for Mining Provinces and landowners to come together to insist on a fair deal from the great wealth that is coming out of their land.

“I think we need to sit down together and come to agreement on how we want the entire mining regime, the entire mining system, to work.”

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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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Chan flatters the mining industry and deceives the people of PNG

Byran Chan

Mining Minister Byron Chan is eager to praise foreign owned mines in PNG for increasing their production and revenues in 2016 – see story below. But what benefit are increased production and increased company revenues to the people of PNG?

What Chan should be talking about but does NOT mention is the government’s revenues from taxation and the landholders benefits. Have government revenues and benefits from Lihir increased by 38% this year to match the increased production and company revenue? Have government revenues and benefits from Hidden Valley increased by 33%? From Simberi by 20% and Porgera by 17%?

Looks like Chan is trying to fool the people of PNG into thinking increased production and revenues are good for them when in fact most of those benefits accrue to foreign shareholders and company executives – not landholders or the the PNG government.

Chan also tries to deceive by declaring “mineral exports will contribute just over K9 billion for 2016”. Sounds great doesn’t it, but why is Chan being so vague – will contribute K9 billion to what? Not government revenues, not landholder benefits but K9 billion to mining company revenues!

Production is up, revenues are up – but so what Mr Chan? Why aren’t you talking about government revenues and landholder benefits? That is what matters to the people of PNG, the people you are supposed to represent and be fighting for as an MP and Minister?

Sounds like Byron Chan is the Minister for Foreign Mining Profits…

Chan praises mines with increasing production
The National aka The Loggers Times | December 7, 2016
MINING Minister Byron Chan says several key mines in the country have shown increasing production and revenue this year.
“They are Lihir, our largest producer, projected to be up a whopping 38 per cent on revenue against 2015, Porgera (17 per cent), Ok Tedi (36 per cent) – an impressive recovery from their closure, Hidden Valley (33 per cent) and Simberi (20 per cent),” Chan said.
“Unless there are further commodity price falls in our key minerals of gold, silver, copper, nickel and cobalt, this level of production and revenue is expected to continue to rise over the next few years.”
He said this was cushioned by the smaller mines such as Kainantu and Tolukuma, which were resuming commercial production in 2017.
In addition, Crater Mountain and Eddie Creek is expected to increase gold production.
“With this growth profile, we project that mineral exports will contribute just over K9 billion for 2016,” he said.
“The number of world class operating mines and advanced projects in Papua New Guinea will undoubtedly attract investors, and open up new business opportunities, both locally for the country as a whole, but especially in mining provinces.
“Provinces such as East and West Sepik, and even Morobe, which have not had a major resource project, will experience an increase in business activities. Planning by provincial and local level governments in relation to these mines is crucial to make the most out of the growth opportunities.

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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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