5 Gold Mines in Papua New Guinea

Gold Mines in Papua New Guinea

Mines in Papua New Guinea hosts rich natural resources, making it an increasingly attractive destination for mining investment. The nation possesses vast and diverse mineral wealth ranging from gold and copper to nickel and cobalt, drawing interest from numerous companies listed on the Australian Securities Exchange (ASX). Five major mining companies play pivotal roles through their exploration, development and production efforts, contributing substantially to both Papua New Guinea’s local landscape and the global mining industry.

In this article we will explore these five gold mining companies with a significant presence in Papua New Guinea. Lihir Gold Limited, Morobe Consolidated Goldfields Limited, Newcrest PNG 1 Limited, Simberi Gold Company Limited and K92 Mining Limited each shape the future of mining in the region through their unique project strategies. From large multinational corporations to emerging industry players, the companies navigate challenges and opportunities arising from Papua New Guinea’s unique environment.

For investors, professionals and those interested in mining’s dynamic world, this examination provides valuable insights into how the five ASX-listed firms contribute to industry growth in Papua New Guinea. We will investigate each company’s background, current mining operations and local economic and community impacts.

Join us on this journey through Papua New Guinea’s mining landscape as we reveal the operations and ambitions of these major companies.

1. Morobe Consolidated Goldfields Limited – PNG

Morobe Consolidated Goldfields Limited (MCG) is a Papua New Guinea-based subsidiary of South African gold miner Harmony Gold. MCG plays an important role overseeing operations and advancing projects in Morobe Province.

At the Hidden Valley mine, one of PNG’s largest gold producers, MCG helps manage open-pit mining located across elevations from 2,800 to 1,700 meters above sea level. Crushed ore is transported via overland pipe and processed on-site through grinding, gravity separation, and carbon-in-leach circuits.

Since commencing production in 2009, Hidden Valley has produced over 3.5 million ounces of gold and generated significant revenues.

While contributing to Hidden Valley’s ongoing success, MCG is also deeply involved in developing the sizable Wafi-Golpu project through Harmony’s joint venture with Newcrest Mining. Situated near the Watut River at 400m elevation, Wafi-Golpu hosts one of the world’s 20 largest undeveloped gold and copper deposits.

As a key JV partner, MCG plays an important community relations and permitting role. Its teams have collaborated on extensive exploration, metallurgical testing, environmental and social impact assessments, and project feasibility evaluations.

Looking ahead, MCG aims to establish Wafi-Golpu as a globally significant mining complex utilizing modern infrastructure and technologies to efficiently extract estimated gold and copper reserves for over 25 years. When responsibly advanced, the project stands to become a pillar of PNG’s economy and generate thousands of well-paying local jobs.

MCG also explores opportunities to expand Hidden Valley’s mine life and productivity. Through contributions at these two major sites, the company helps usher in a new era of large-scale mining investment and prosperity in Morobe Province.

2. Newcrest PNG 1 Limited – PNG

Newcrest PNG 1 Limited (Newcrest PNG) is a wholly owned subsidiary of Australian gold mining giant Newcrest Mining Limited. In Papua New Guinea, Newcrest PNG operates the world-class Lihir Gold Mine on behalf of mine owner Lihir Gold Limited. Since acquiring ownership rights to the operation in 2010, Newcrest has applied its technical expertise and large scale mine management experience to optimize production from Lihir.

Newcrest PNG employs a highly skilled workforce of over 4,000 people throughout the mine’s various production stages. These include open pit mining, crushing, grinding, gravity and CIL vat leaching as well as gold room processing. Pit configurations and haul roads are continually expanded to access deeper high grade zones of the Lihirian mineral system. Exploration drilling also targets satellite deposits near the main processing plant to supplement mill feed for decades to come.

Health, safety and environment are core priorities for Newcrest PNG amidst the operational scale and complex terrain of Lihir Island. Advanced systems monitor air quality, water usage, waste management and site rehabilitation. A full service medical center and emergency response capabilities ensure worker wellbeing.

Rigorous management plans and local engagement further control social and biodiversity impacts. Both mandatory and additional COVID-19 controls recently enabled uninterrupted 24 hour production during the global pandemic.

Beyond mining duties, Newcrest PNG contributes significantly to Lihir community development through dedicated social programs. Key focus areas include education infrastructure, scholarships, small business training, healthcare initiatives and conservation area management. Signing of renewed agreements see these investments sustain for the long term benefit of Lihirian people.

As the established operator maximizing throughput and recovery from the tier-one Lihir orebody, Newcrest PNG’s expertise ensures Papua New Guinea continues to reap substantial economic returns from its gold endowment well into the future.

3. Lihir Gold Limited – PNG

Lihir Gold Limited is one of the largest gold mining companies operating in Papua New Guinea. The company owns and operates the Lihir Gold Mine, located on Lihir Island in Papua New Guinea’s New Ireland Province. Lihir Gold Mine has been in production since 1997 and is considered one of the biggest gold mines in the world.

The mine utilizes open pit mining methods to extract an estimated 11 million ounces of gold reserves from the island’s mineral rich terrain. Ore is mined from five primary open pits and processed through a plant facility with an annual throughput capacity of 22 million tonnes.

Advanced technologies such as automated drilling and hauling equipment are employed to maximize efficiency. Production levels regularly exceed 1 million ounces of gold per year, generating significant revenue for both Lihir Gold and Papua New Guinea.

In addition to its extensive mining operations, Lihir Gold focuses on sustainable development through community and environmental programs. Over 650 million USD has been invested in infrastructure, health, education, and business projects across the island and country. Initiatives aim to create lasting social and economic benefits. Lihir Gold also rehabilitates mined areas and engages in water quality monitoring to minimize environmental impacts.

As the core contributing taxpayer and employer in Papua New Guinea’s New Ireland Province, Lihir Gold plays a pivotal nation-building role. The company’s workforce consists of over 4,000 people, with priority given to local hire and training programs to develop Papua New Guinean skills. Involvement in the local Chambers of Commerce and business incubator assistance further stimulates business and economic growth.

Despite facing weather disruptions, Lihir Gold’s production levels remained strong through the 2020 pandemic year. With open pit mining scheduled until at least 2031 and further exploration upside, the company looks to sustain long term operations and community development at Lihir.

As a major gold producer, stable supplier, and partner to Papua New Guinea’s development, Lihir Gold exemplifies how responsible resource sector investment can Create Shared Value.

4. Simberi Gold Company Limited – PNG

Simberi Gold Company Limited (SGCL) operates the Simberi Gold Mine, located on Simberi Island in Papua New Guinea’s New Ireland Province. The open pit mine commenced commercial production in 2010 and utilizes a combination of conventional gravity and carbon-in-leach processing to extract gold from ore deposited in volcanogenic massive sulfide formations.

Simberi has proven reserves to support mining operations into the mid-2020s. Ore is mined from three main pits and hauled to the central processing facility, which has a capacity of 1.6 million tonnes per annum. Gold production averages around 100,000 ounces annually, making Simberi a significant contributor to PNG’s gold output.

SGCL is owned by Australian gold miner St Barbara Limited, which acquired the project in 2012. Under St Barbara’s ownership, investments have been made to extend mine life, including discovery of the Pigibo and Tanaman deposits.

Ongoing exploration drilling also evaluates opportunities at satellite prospects situated nearby. Attention to lean production practices and innovation have improved efficiencies over recent years.

As the main employer in the Tabar Group of islands, SGCL prioritizes Papua New Guinean employment, business partnerships and community development. Almost 90% of the 400-person workforce is PNG-based, with support provided to develop long-term careers in the mining sector. Further, the company established a community trust fund to facilitate self-determined local economic projects.

In recognition of its sustainability efforts, Simberi attained the prestigious Copper Mark in 2021, an independent accreditation demonstrating responsible production practices. Initiatives like mangrove protection, environmental monitoring and worker right programs illustrate SGCL’s aim to leave a positive long-term legacy.

While weather impacts sometimes disrupt annual output levels, SGCL continues achieving stable gold recovery from Simberi’s orebodies. With exploration ongoing and a thorough closure plan in place, the mine remains an integral part of Simberi Island and Papua New Guinea’s mining-centered economic activities into the future.

5. K92 Mining Limited – PNG

K92 Mining Limited operates the successful Kainantu Gold Mine located in Papua New Guinea’s Eastern Highlands Province. Since commencing production in 2018, K92 has rapidly expanded mining operations and established itself as a sizable gold producer in PNG.

The Kainantu deposit is host to high-grade epithermal and porphyry gold mineralization well-suited to underground mining methods. Ore is extracted from two mining areas via a decline system and trucked to surface for processing. An on-site 1,100 tonne per day CIL/CIP plant recovers gold from crushed ore using cyanide leach techniques.

With Phase 1 expansions complete, mill throughput has increased significantly while cash costs remain low. This has Kainantu on track to produce over 150,000 ounces of gold in 2022 alone. Further resource definition and infrastructure upgrades throughout 2022-2023 are expected to drive multi-year production growth.

As the inaugural large-scale underground gold mine in PNG, K92 applies best practices for maximizing local participation and economic benefits. Approximately 600 Papua New Guinean nationals now work at Kainantu, with management and training programs cultivating long-term indigenous mining skills.

K92 also contributes to community health, education and enterprise development through a dedicated foundation. Major investments include buildings for a technical training center, hospital, and women’s center. Constructive partnerships with landowner groups ensure open communication and shared prosperity.

Listed in both Canada and Australia, K92 has emerged as a prominent mid-tier gold miner in Oceania through rapid production ramp-up at Kainantu. With exploration still outlining new resources and mine planning to significantly expand underground infrastructure, Kainantu is well-positioned to serve as a foundation for K92’s long-term growth ambitions in Papua New Guinea. When developed responsibly, the mine stands to deliver lasting economic and social legacies.

Conclusion Mines in Papua New Guinea

In summary, Lihir Gold, Morobe Consolidated Goldfields, Newcrest PNG 1, Simberi Gold, and K92 Mining play integral roles developing Papua New Guinea’s mineral wealth and economy.

Through responsible mining practices and meaningful investments in community development, these mines in Papua New Guinea generate substantial benefits for both local populations and the nation as a whole.

While each faces its own opportunities and challenges particular to operating in PNG’s rich but remote and environmentally sensitive regions, all demonstrate ongoing commitment to sustainable operations and inter-generational positive legacies.

As extraction of the country’s gold and other resources continues for decades to come, partnerships with companies practicing international best standards will be important for PNG to realize mining’s potential as a driver of enduring social and economic growth.

With prudent sector stewardship and shared commitment to long-term goals, the future indeed remains bright for the partnership between industry and nation.