HomeGoldPapua New Guinea joint venture kicks off

Papua New Guinea joint venture kicks off

Harmony’s Hidden
Valley gold and
silver project in
Papua New Guinea
Johannesburg, South Africa — MININGREVIEW.COM — 11 August 2008 – Harmony Gold Mining Company Limited (Harmony) – the fifth largest gold producer in the world –  and Newcrest Mining Limited (Newcrest) – Australia’s largest gold producer and a leading international gold company – have announced that Newcrest has acquired an initial 30% interest in Harmony’s joint venture holding exploration and mining assets in the Morobe province of Papua New Guinea (PNG).
The Harmony announcement follows Newcrest’s payment of US$230 million (R1.7 billion) to Harmony, and the completion of all steps required to achieve Stage 1 of the joint venture, including government and regulatory approvals.

It went on to say that Newcrest would increase its interest in the joint venture to 50% by sole- funding all project expenditure up to a maximum of US$306 million (R2.3 billion), until the date of first production from the Hidden Valley mine. Production was scheduled to commence at Hidden Valley in mid-2009.

“The completion of Stage 1 marks the commencement of the joint venture,” the announcement added. “The joint venture assets – which will be operated under the name Morobe Mining Joint Ventures – include the Hidden Valley gold mine, as well as the highly prospective Wafi Golpu copper/gold deposit and extensive exploration tenements in the Morobe province of PNG.”