Petromin acquires TGM

By FRANK ASAELI
PETROMIN has purchased Emperor’s money-losing Tolukuma Gold Mine in the Central province, making it its sole owner.
Both Petromin and Emperor indicated that the mine was purchased at a “nominal price”.
However, the actual figure was not disclosed during the signing of the purchase agreement between the two companies last Tuesday evening.
Petromin managing director Joshua Kalinoe said by acquiring 100% of the company, Petromin also becomes the owner of 10 exploration tenements, making it the largest on-shore mining tenement holder in the country.
However, the small open pit and underground mine, which has been in operation since 1995, has had its share of problems, which included waste spillage, a high cash cost to gold production, and a decrease in overall gold production.
Mr Kalinoe said negotiations between Emperor and Petromin began last December with final agreement being reached last Tuesday.
He said Petromin was happy to accept the challenge of owning and operating the mine on behalf of the people of Papua New Guinea.
Mr Kalinoe thanked Emperor Mines for its commitment to developing the mine over the last few years while the mine was under its ownership.
He said the mine brought with it a lot of challenges in geology, engineering, logistics and mine management.
“Obviously, the acquisition gives Petromin the opportunity to learn the ropes of managing and operating a mine in a challenging environment.
“We believe there is plenty of life at Tolukuma. It needs further exploration and infield drilling to prove up the reserves,” Mr Kalinoe said.
Emperor chief executive Brad Gordon said after running a competitive process, his company had selected Petromin as its preferred buyer for the Tolukuma asset due to its links with the Government and people of PNG.