Tag Archives: Simberi mine

St Barbara and PNG Industry News airbrush history

St Barbara may be repaying its debts to the bank, but what about its debts to the people of the Solomon Islands, who have been abandoned by St Barbara and left with an environmental disaster on their doorstep – a decision condemned as ‘immoral’ by the Solomon Islands Environment Ministry – Australian real estate investor circles Solomons ‘disaster’ gold mine

St Barbara repays last of debt

Simberi Gold Mine

Simberi Gold Mine

DIVIDENDS and acquisitions are well and truly likely for St Barbara after the gold miner repaid the last of its $US20 million debt.

PNG Industry News | 15 February 2017

The company will repurchase the final $20 million in aggregate principal of its US senior secured notes next months at a 3.3% premium to par value.

The repurchase will reduce future interest expense by around $A2.4 million per annum.

The repurchase, to amount to $US21 million, will be repaid from cash reserves.

St Barbara, which operates the Simberi gold mine in Papua New Guinea’s New Ireland Province, expects cash after the repurchase to be around $A70 million.

In the past 18 months, St Barbara has repaid $436 million in debt and will have only equipment leases of less than $1 million outstanding after the final note repurchase.

St Barbara managing director and CEO Bob Vassie said the repayment of the debt would inform the board’s consideration of future dividends in conjunction with growth options.

The company plans to internally fund the $85-95 million Gwalia extension project.

“We can afford our future at Gwalia,” Vassie told the Sydney Mining Club earlier this month.

While he described Gwalia as the “gift that goes on giving”, he noted that the company was very reliant on the Leonora operation.

Vassie said the company was keen to add another 250,000 ounce per annum, long-life mine, and would now be able to take advantage of value-accretive opportunities as they arose.

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St Barbara considers dividend payment

Abandoned Gold Ridge mine processing plant. (Stefan Armbruster SBS)

St Barbara shareholders set to cash in after abandoning Solomon Islands mine – funny how The Australian manages to leave out the whole Gold Ridge saga from its story…

The Australian newspaper airbrushes history and completely ignores the fact St Barbara was condemned as ‘immoral’ by the Solomon Islands Environment Ministry for selling its abandoned ‘disaster’ mine to traditional landowners for A$100.

Read More: Australian real estate investor circles Solomons ‘disaster’ gold mine

The West Australian via The National aka The Loggers Times | January 20, 2017

ST BARBARA is weighing the potential for dividend payments as the cashed-up gold miner closes in on an end to its debt nightmares, according to the mine.
St Barbara’s assets include the Leonora operations in Western Australia and the Simberi operation in New Ireland.
Managing director Bob Vassie admitted in an analyst conference call yesterday that the St Barbara’s board was facing pressure from shareholders to outline a dividend policy as the company built its cash war-chest and eyed debt-free status.
Its position is a far cry from 2014, when St Barbara owed about AU$320 million and was on corporate death row as the gold price weakened.
It produced 99,000 ounces of gold from its Leonora and PNG operations in the December quarter, spitting out AU$76 million in free cash flow and repaying AU$121 million of debt.
It will pay another AU$20 million before the month’s end and says lenders will be fully repaid in March.
St Barbara had AU$87 million cash at the end of December and 14,500oz of unsold gold worth about AU$23 million.
It plans to spend AU$85m to $95m on a ventilation and waste infill project that will take the miner to the bottom of its Gwalia mine’s known reserve – 2000m below the surface.
Vassie said St Barbara was looking at growth options, including acquisitions and AU$22 million of exploration.

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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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“Simberi mine improving” – but for who?

simberi

St Barbara can boast that its Simberi mine “is improving” – but what does that mean and who is reaping the benefits?

Improved production levels and cash earnings are great for foreign shareholders and the Chairman’s fat annual bonus – but does that mean anything for local people, forced to look on as spectators on their own land without decent government services and a ruined environment?

Simberi mine improving: Chairman
Gedion Timothy | The National aka The Loggers Times | December 1 2016
ST Barbara’s Simberi gold mine in New Ireland has seen continued improvement this year, justifying the company’s decision to preserve with what was an under-performing asset in 2014, says chairman Tim Netscher.
Netscher told the company’s annual general meeting in Melbourne, Australia that Simberi “is now demonstrably confirmed as a reliable earner of cash, exceeding its target production rate of 100,000 ounces per annum for six consecutive quarters”.
“With the sensible use of hedging, we have ensured that Simberi will stay cash-positive regardless of gold price conditions for the remainder of this financial year,” Netscher said.
“During the year, we determined that we should conduct a strategic review of our PNG assets, considering the commercial opportunities available from divestment or joint venture or retaining both the operating and extensive exploration assets of Simberi.
“This review has been completed and we announced the results earlier this month.
“The results are:

  • That we will retain Simberi as an operating asset, and all gold oxide and sulphide exploration opportunities in the Tabar Island group;
  • That we will joint-venture with Newcrest the exploration of copper-gold porphyry prospects on Tatau and Tabar Islands;
  • That we will not, based on the existing reserves, resources and feasibility study, invest in sulphide mining and processing on Simberi at this time but will continue with studies of opportunities to improve the economics of this project.

Simberi is the northern most island in the Tabar group of islands in New Ireland.

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St Barbara retains PNG assets, forms exploration JV with Newcrest

simberi

Simberi island

Esmarie Swanepoel | Mining Weekly | 14 November 2016

Gold miner St Barbara Gold has decided to retain its Simberi operations, in Papua New Guinea, following a strategic review.

The company in February this year launched the review to evaluate “various options” for the assets, including continued ownership, exploration and development, possible joint ventures and divestment of some or all of its assets in the country.

St Barbara said on Monday that while a number of potential buyers had expressed interest in the Papua New Guinea assets, their level of interest did not meet the company’s assessment of the value of the assets.

Instead, the company has inked an option and farm-in agreement with gold miner Newcrest’s Papua New Guinea exploration arm, for copper/gold porphyry exploration on the tenements on nearby Tatau and Big Tabar Island, subject to the completion of conditions precedent.

The agreement gives Newcrest the option to earn a 75% joint venture interest on tenement holdings, and will require Newcrest to pay an initial $3-million in exploration fees over a two-year option period, conducting 4 000 m of diamond drilling.

The company can then earn a majority share in the projectareas by spending a further $25-million in exploration and drilling 32 000 m of diamond drilling, over two stages ranging up to six years.

Under the agreement, St Barbara will manage the explorationduring the initial earn-in period, and will retain the right over all oxide and sulphide material which is, or has the potential to be mill feed for existing oxide or the contemplated sulphide plant at Simberi.

In addition, St Barbara will spend between A$6-million and A$7-million in 2017 on its own exploration across the Tabar Island group, including Simberi.

MD and CEO Bob Vassie told shareholders on Monday that the strategic review had been rigorous, and that the company had tested each strategic option for the future of the Papua New Guinea assets.

“What we own in the Papua New Guinea would be difficult to replace in the current market. St Barbara’s diligent work over the last few years has successfully turned around the Simberi operation, which is now consistently generating good cash flows.

“The prospectivity of the region, and the potential for exploration discovery on the Tabar Island group is demonstrated by the significant option and farm-in agreements with Newcrest.”

Vassie said that the gold miner’s focus was on continuing exploration work to extend the oxide mine life at Simberi, improve the sulphide opportunity, maximise the value from exploration interest, and work with Newcrest to achieve success from the joint exploration

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Simberi landowners seek compensation for unlawful exploration

simberi

Landowners seek claims for damages

Post Courier, April 20,2016

A GROUP of landowners on Simberi Island in New Ireland Province is asking for K200,000 compensation, from a mining company for exploration on their land.

The Anos and Keis Kokomageot landowners of Maragon village say that they have not been consulted. They said that the exploration licence (EL609) by Nord Australex Nominees (PNG) Limited, a subsidiary of Simberi Gold extractors, St Barbara Limited, was unlawfully granted and used to explore on their land without their knowledge.

The piece of land is located west of the Island and lies in the non-mining lease area while the mine is in the east coast.

Clan chiefs Tom Tamanok, William Jone and Obert Laka said that vegetation were destroyed without consulting the landowners. The chiefs say that their rights to their customary lands including the right of ownership thereof as expressed by the right to possess, the right to use, and the right to dispose of customary land which have been taken away from the customary landowners, or suspended for the duration or terms of the EL609 as a result of the unlawful grant of the Exploration Licence EL609 to Nord Australex Nominees (PNG) Limited.

They were however, offered an amount of K2000 after an enquiry on the unlawful prospecting. This was declined and offered another offer of K9000 was made but it was also rejected. The landowners feel that their rights to the land were not respected by the foreigners.

In a letter from the mining operators, all activity conducted on Anos and Keis Kokmagiot clans customary land is within Exploration Licence 609. Mining Act 1992 Section 23 (1) (a) provides that an exploration licence authorises the holder, in accordance with any conditions to which it may be subject, to enter and occupy the land which comprises the exploration licence for the purpose of carrying out exploration for minerals on that land.

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Why Is Mine Waste Being Dumped Directly Into the Ocean?

“Indonesia, Papua New Guinea and Norway lead the way using DSTP at their mines”

The Los Pelambres Mine in Chile proposes to dump wastes into the ocean.

The Los Pelambres Mine in Chile proposes to dump wastes into the ocean.

Terry Odendahl, Roy Young and Gary Wockner** | Eco Watch | March 4, 2016 

Picture a 4-foot diameter pipe running into the ocean filling the offshore canyons at a rate of 160,000 tons per day. The pipe runs from an enormous gold and copper mine directly into the Indian Ocean. The pipe is filled with mine “tailings”—a toxic sludge of heavy metals, rock and coagulants mixed in with the pulverized mine wastes that spreads and covers the seabed dramatically impacting plant and animal life and polluting the surrounding water. That is the Deep Submarined Tailings Disposal (DSTP) system at Newmont Mining’s Batu Hijau copper and gold mine in Indonesia.

Although Batu Hijau is the biggest mine that is using DSTP, at least 16 mines in eight countries are also using DSTP, with others to follow. Indonesia, Papua New Guinea and Norway lead the way using DSTP at their mines. In Chile, mines in the mountains north and east of Santiago are proposing to run pipes 50-100 kilometers so they can dump into the canyons of the Pacific Ocean off of the Chilean coast. The enormous Los Pelambres Copper Mine in Chile proposes to use DSTP in the future, discharging its wastes directly into the ocean.

The 4-foot diameter pipe dumping mining wastes into the ocean at Batu Hijau mine in Indonesia.

The 4-foot diameter pipe dumping mining wastes into the ocean at Batu Hijau mine in Indonesia.

While you might think this mining disposal would be limited to the unregulated developing world, Norway actually leads with the most mines using this polluting disposal system. The mining wastes are dumped into Norway’s pristine fjords, filling much of those fjords over time. One such mine has prompted a backlash by Norwegians who, working with Friends of the Earth International, have started the Save The Fjords campaign.

As stated on their website, “In April 2015, the Norwegian government gave its final permission for an open-pit mine in a mountain called Engebo. The mine will dump more than 250 million tons of chemicals and waste into the pristine Forde fjord.”

The Forde Fjord in Norway would be partially filled with mining wastes.

The Forde Fjord in Norway would be partially filled with mining wastes.

The Norwegian proposal sparked the “biggest civil disobedience actions in newer Norwegian history” where hundreds of people protested and 80 people were arrested blocking the mining action and trying to save the fjord. Through Global Greengrants Fund, a grant has been given to Friends of the Earth International to help inform Norwegians about the Engbo mine and its ocean disposal.

wegian protestors rally against filling their fjords with mining wastes.

Norwegian protestors rally against filling their fjords with mining wastes.

It could make sense in some cases to dispose of mining wastes in the ocean, but only if those wastes were non-reactive and only if the toxic heavy metals in the wastes are removed. In addition, if ocean disposal does take place, it should be closely monitored and regulated and it should only happen where local people are not dependent on the marine environment for food. Proposals to use DSTP along the coastline of Chile threaten the Humbolt Current System (HCS) which sustainably produces almost 20 percent of the annual harvest of fish biomass. The HCS is the most productive marine ecosystem on the planet. Just four mines would dump one million tons of mine waste into the HCS every day, one gigaton every three years.

Over the last 25 years, international regulatory bodies including the 1996 London Convention and Protocol by the International Maritime Organization and the 1992 Oslo Paris Convention have attempted to set minor regulations for DSTP, but those standards are mostly being ignored.

In the very few places where monitoring has occurred, studies have measured dramatic decreases in the amount of benthic meiofauma (animals less than I millimeter long) as well as all forms of benthic macrofauna (larger than 1 millimeter), which, along with phytoplankton, form the basis of the food chain in marine environments. Almost no research has occurred about the consequences of dumping 100’s of millions of tons of mine wastes at current DSTP sites. This phenomenally destructive pollution is virtually unregulated across the planet’s marine environments.

** Terry Odendahl, PhD, is president and CEO of Global Greengrants Fund. Roy Young is the former executive director of Global Greengrants Fund and founder of Nature’s Own. Gary Wockner, PhD, is an environmental activist, writer and consultant to Global Greengrants Fund.

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