Gold price allows miner to consider sulphide ores

THE current price of gold have allowed St Barbara’s Simberi gold mine in New Ireland to go back and mine material that was not economically feasible before, general manager Jason Robertson says.
He noted that the mine was currently investigating a transition from the processing of oxide ore to the processing of sulphide ore, but the latter posed problems as it would require a new mining process and plant.
He said the company was concerned that the proposed amendments to the Mining Act would introduce additional costs that could make the processing of sulphide ore expensive and unprofitable.
Robertson said that particular concern to the St Barbara board was the proposed introduction of a mine waste levy.
“We have worked to make our current waste disposal process completely environmentally friendly,” he said.
“But if too many additional costs are introduced then we would have to finish mining the remaining oxide ore and then shut the mine down.
“St Barbara is currently investing US$150 million (K511mil) in PNG and they need to have some assurance their project will be able to survive.”
New Ireland Governor Sir Julius Chan conveyed that his government had a strong view about the amendments to the Mining Act.
He made it clear that his concern was to work for the benefit of the people and to ensure they had a better life after the mine than they had before the mine.
“Now is the time to have this discussion because we do not want to experience another Porgera situation in New Ireland,” Sir Julius said.
He said opening dialogue between St Barbara and the New Ireland government in relation to benefit sharing needed to start.
“The New Ireland government has repeatedly proposed that ownership be returned to the people,” he said.
“Mining companies must make a reasonable return comparable to international profit margins.”