St Barbara Limited advances negotiations with Papua New Guinea authorities on the Simberi Mining Lease extension, while awaiting revised tax reassessments that could unlock project expansion.
- Mining Advisory Committee recommends Simberi Mining Lease extension to 2038
- PNG Internal Revenue Commission to reissue revised tax assessments by 19 September
- St Barbara confirms full tax compliance and ongoing resolution efforts
- Mining lease extension contingent on resolution of outstanding tax matters
- Simberi Expansion Project development timeline impacted by tax dispute
Lease Extension Progress
St Barbara Limited has taken a significant step forward in securing the future of its Simberi gold operations in Papua New Guinea. The company confirmed that the Minister of Mining, Honourable Mr Rainbo Paita, received formal documentation recommending the extension of the Simberi Mining Lease until 2038. This follows a positive recommendation from the Mining Advisory Committee in August, signaling strong governmental support for the lease renewal.
Tax Reassessment Developments
However, the path to finalising the lease extension remains intertwined with an ongoing tax reassessment dispute. The Papua New Guinea Internal Revenue Commission (IRC) has indicated it will revoke previous tax assessments issued in December 2024 and reissue revised versions as early as 19 September 2025. St Barbara’s subsidiary, Simberi Gold Company Limited, maintains that it is fully compliant with all tax obligations and is actively working with the IRC to resolve the matter.
Operational and Community Impact
Since commencing operations in 2012, Simberi Gold has been a significant contributor to the PNG economy, employing a workforce predominantly composed of local nationals and generating substantial royalties. The company’s commitment to governance and community engagement underpins its efforts to maintain good standing with PNG authorities and stakeholders.
Implications for Expansion
The unresolved tax matter has had tangible effects on St Barbara’s financing and development timetable for the Simberi Expansion Project. The company’s Managing Director and CEO, Andrew Strelein, has engaged directly with the Mining Minister to clarify that the objections are under review and that resolution of the tax issues is a prerequisite for the lease extension to proceed. This linkage underscores the critical nature of regulatory compliance in advancing major mining projects.
Looking Ahead
With the IRC’s revised reassessments expected imminently, St Barbara is positioned to move past this regulatory hurdle. The company’s transparent communication and alignment with PNG government priorities suggest a cooperative approach to resolving outstanding issues and securing the lease extension that will enable the next phase of Simberi’s development.
Bottom Line?
The resolution of PNG’s tax reassessment will be pivotal in unlocking Simberi’s future growth and investor confidence.
Questions in the middle?
- Will the revised tax reassessments fully satisfy PNG tax authorities and St Barbara’s objections?
- How might any changes in tax liabilities affect the financial viability of the Simberi Expansion Project?
- What is the expected timeline for official approval of the mining lease extension following tax matter resolution?