Tag Archives: Hidden Valley

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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Filed under Mine construction, Papua New Guinea

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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Filed under Financial returns, Papua New Guinea

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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Filed under Financial returns, Papua New Guinea

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