Simberi plans to invest K26m in capital expenditure

Business, Normal

The National, Wednesday December 23rd, 2015

 ST Barbara’s, Simberi gold operation in New Ireland, expects to invest between A$8 million (K17 million) and A$12 million  K26 million) in capital expenditure for the financial year to June 2016.

Company secretary Rowen Cole, responding to questions from The National, said the investment included the purchase of additional mining equipment. “And also to spend about A$4 million to $5 million (K9m to K11m) on exploration across the Tabar Islands (Simberi, Tatau and Big Tabar Islands),” Cole said. 

The company’s Simberi operation’s economic contribution for this year included; 

  • Purchase within PNG, local area compensation payment and support – K5 1 million;
  • Royalties (two percent of gold revenue) – K4.8 million;
  • Mineral Resources Authority levy (0.25 per cent of gold revenue) – K0.6 million; and, 
  • Withholding taxes – K0.7m. The company employing 600 nationals covering diverse range of employment and training.  Simberi has achieved record gold production in each quarter so far in 2015.

The March quarter recorded 22,498 ounces, June quarter      27,137 ounces and September quarter 29,539 ounces.  

The firm early this month undertaken successful cost reduction programmes.