K69 billion to come from LGL and Newcrest JV

THE merger between Lihir Gold Ltd (LGL) and Newcrest will create a A$25 billion (K69 billion) company, according to LGL chairman Dr Ross Garnaut.
Speaking at LGL’s annual general meeting in Port Moresby yesterday, Garnaut told shareholders that LGL’s proposed merger with Newcrest Mining Ltd would start a new chapter in the history of LGL.
“Importantly, I have received commitments from the chairman that Newcrest will continue LGL’s approaches to the equitable sharing of the benefits of mining with local communities. Like LGL, Newcrest has a strong track record on responsible environmental management.”
Garnaut said he was proud of the “magnificent success” of the Lihir Island gold operation in New Ireland province, which had produced more than eight million ounces of gold since operations began in 1997, and made a big contribution to PNG economy.
“It is reasonable to say that the success of Lihir’s efforts after the difficulties of earlier large mines has paved the way for the current intense international interest in mining in PNG, allowing this country to take advantage of its rich resources during the high metal prices of the global resources boom.”
Garnaut said the operation had created a lasting positive legacy for the people in Lihir and for PNG more broadly, and would continue to generate wealth and enhance society in the region for many years to come.
“I particularly want to thank the people of Lihir for their involvement and support over the years. Their co-operation and understanding have been invaluable,” he said.
“The project’s success is a tribute to the many people who have been involved over the years, including Sir Julius Chan, Sir Mekere Morauta and Sir Michael Somare, who as prime ministers of PNG, supported the project so strongly, and Sir Julius in his current role as governor of New Ireland.”