ST BARBARA is expecting its sulphide expansion project at the Simberi operation in New Ireland, Papua New Guinea to proceed either under its name or a different ownership.
Managing director and chief executive officer Craig Jetson said there had been interest from potential investors.
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| Simberi’s rope conveyor (Ropecon), part of the mine’s clean energy campaign, delivers ore to the process plant three-kilometres downhill from the pit. [Photo by Chamber of Mines and Petroleum] |
“The company has decided to commence a strategic review of St Barbara’s investment in the Simberi operation and defer the final investment decision in the Sulphide expansion project,” Jetson said.
“St Barbara faces capital investments at each of its three operations in the next two years. This strategic review will assess the best allocation of capital for risk and return compared with the company’s other projects.
“St Barbara has received unsolicited enquiries from potential investors in Simberi, and anticipates the Sulphide expansion project to proceed either under St Barbara or a different ownership.”
Jetson added that the approval for the Simberi sulphide project had been endorsed and signed by the Minister for Environment and Conservation and Climate Change.
The approval is now in the final stage of being issued.
“The front end engineering and design (FEED) study has continued while we await the permit, including finalising the mine design for the preferred pit development sequence and seeking to confirm a reliable capital cost estimate in a volatile pricing environment,” he said.
“The significant cost inflationary pressures currently being experienced in the global project construction market, together with some project scope changes are resulting in a significant increase in the capital cost estimate relative to that calculated in the feasibility study.”
The National / Pacific Mining Watch
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