Harmony starts to deliver gold from Hidden Valley
July 2, 2009
By Justin Brown
Harmony Gold's Hidden Valley mine in Papua New Guinea (PNG) started producing ore a week ago, in line with the parent company's plans, and had delivered an estimated 5 000 tons of ore since then, spokeswoman Marian van der Walt said yesterday.
She said Hidden Valley was projected this year to produce up to 280 000 ounces of gold, worth R2 billion, and up to 4 million ounces of silver, worth R429 million.
Hidden Valley, a 50:50 joint venture of Harmony and Australian mining group Newcrest Mining, is PNG's first new gold mine in 15 years.
The Hidden Valley plant was finished, but office infrastructure and the conveyor would be completed only towards the end of September, when it would achieve full production, said Van der Walt.
"The cost closing has not been done as yet and our partner, Newcrest, would also have to agree with the figures before we are able to publish the capital expenditure amount."
In January, Harmony chief executive Graham Briggs put the total cost of the Hidden Valley mine construction at more than A$605m (R3.8bn at yesterday's exchange rate).
Van der Walt said a study group would look at the viability of expanding the mine and mill. However, the study must be approved by the joint venture.
Briggs said in January that Harmony would like to build more mines in PNG while either expanding Hidden Valley's production or extending the mine's life.
Van der Walt said the Morobe joint venture's gold resources in PNG had grown from 3 million ounces in 2002 to 15.1 million ounces in 2007.
Harmony shares yesterday dropped R1 to R79 on the JSE yesterday.
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