St Barbara Limited is progressing towards the renewal of its Simberi Mining Lease, a critical step to extend operations and boost gold production through 2038. Final approval is anticipated in August 2025 after regulatory review delays.
- Simberi Mining Lease renewal application reviewed by Mining Advisory Committee
- Clarifications provided; final recommendation pending ministerial approval
- Minister of Mining expected to decide in August 2025 after overseas travel
- Renewal aligns lease tenure with Simberi Expansion Project’s mine life to 2038
- Expansion targets gold production exceeding 200,000 ounces annually
Regulatory Progress on Simberi Lease Renewal
St Barbara Limited has provided an important update on the status of its early renewal application for the Simberi Mining Lease 136. The Mining Advisory Committee (MAC), responsible for reviewing such applications, convened a special meeting in early July to examine the submission. Following this, the committee requested additional clarifications, which St Barbara promptly addressed mid-July.
The process now awaits the MAC’s final recommendation, which will be forwarded to the Minister of Mining, the Honourable Mr Rainbo Paita, for approval. However, with the Minister currently overseas until the end of July, the earliest formal decision is expected in August 2025.
Strategic Importance of the Lease Renewal
The renewal of the Simberi Mining Lease is pivotal for St Barbara’s operational future on the island. Extending the lease until 2038 aligns directly with the company’s Simberi Expansion Project, which is underpinned by proven and probable ore reserves. This extension secures the tenure necessary to unlock the sulphide ore reserves, a key resource that will support increased gold production.
According to Managing Director and CEO Andrew Strelein, the renewal is a critical enabler for expanding annual gold output beyond 200,000 ounces. This production milestone would represent a significant step up from current levels and enhance the company’s contribution to the regional economy and stakeholders.
Community and Government Support
St Barbara has expressed gratitude for the support received from multiple local and provincial stakeholders, including the Simberi Landowner Association, New Ireland Provincial Government, Sentral Niu Ailan Local Level Government, and the Namatanai District Development Authority. Such backing is often essential in navigating the regulatory landscape and ensuring sustainable mining operations that benefit local communities.
Mr Strelein’s recent presence in Port Moresby underscores the company’s commitment to maintaining strong government relations and advancing the renewal process efficiently.
Looking Ahead
While the renewal application is progressing steadily, the final ministerial approval remains the last hurdle. The timing and any conditions attached to the renewal will be closely watched by investors and industry observers, given their implications for project timelines and production forecasts.
St Barbara’s ability to secure this lease extension will be a defining factor in its medium-term growth strategy and its positioning within the competitive gold mining sector.
Bottom Line?
The Simberi lease renewal decision in August will be a crucial milestone shaping St Barbara’s growth and production outlook.
Questions in the middle?
- Will the Minister of Mining impose any conditions on the lease renewal that could affect project timelines?
- How will the lease extension impact St Barbara’s capital expenditure and operational planning?
- What are the potential risks if the renewal is delayed beyond August or not granted?