By JASON SOM KAUT
HARMONY Gold (PNG) wants to resolve all landowner issues before the end of 2008 to pave the way for the start of production at its Hidden Valley mine.
Mining activities were expected to begin in March next year with negotiations for partnerships and pre-feasibility studies continuing.
Public relations manager Simon Anakapu said everything was going according to schedule and that an update would be available after this year’s first quarter.
Mr Anakapu said full-scale operations at the Hidden Valley mine site would see a power demand of about 18MW.
At present, the mine site was tapping into PNG Power supply grid for its electricity needs.
The Baiyune sub-station would also be tapped to complement supply from Yonki hydro-power plant and to bring electricity to some 10,000 people living near the road from Timini to Wau, he said.
PNG Power will install a new 18MW hydro-power station at the base of the Yonki Dam to supply electricity to the gold mine under a deal signed with the project’s parent company, Harmony International of South Africa last May 14.
Harmony Gold will meet the cost of the new power generator.
According to reports, tenders had been called both locally and overseas for contractors to bid for the construction of the Yonki Toe power station. This would include the construction of two substations and transmission lines.
The power station, which is targeted to be operational by January 2009, will be built at an estimated cost of K120 million.
Harmony had chosen to work with PNG Power to provide the chance for both companies to carry out electrification project in villages along the transmission route.