St Barbara Limited has secured a crucial extension of its mining lease for the New Simberi Gold Project until 2038, setting the stage for strategic investments and a significant production increase.
- Mining Lease ML 136 extended to 2038
- Extension aligns with proven and probable ore reserves
- Key condition met for Lingbao and Kumul strategic investments
- Planned production expansion to over 200,000 ounces annually
- Strong support from PNG government and local stakeholders
Mining Lease Extension Secures Project Longevity
St Barbara Limited has officially received approval to extend Mining Lease ML 136 for its New Simberi Gold Project in Papua New Guinea until 2038. This extension aligns precisely with the mine life outlined in the company's recent feasibility study, which is based on proven and probable ore reserves. The lease extension provides the legal and operational certainty needed to underpin the project's long-term development plans.
Strategic Investments on the Horizon
The lease extension is a critical milestone that unlocks the next phase of strategic partnerships. It satisfies a key condition precedent for the planned investments by Lingbao Gold Group and Kumul Minerals Holdings, who are set to acquire 50% and 20% stakes respectively in the project. These investments are expected to provide the capital and expertise necessary to expand gold production significantly.
Production Expansion and Economic Impact
With the lease secured, St Barbara is targeting a final investment decision by the third quarter of fiscal year 2026. The expansion aims to boost annual gold output from the New Simberi Gold Project to over 200,000 ounces, a substantial increase that could enhance the company’s market position and shareholder returns. This growth is also likely to benefit the local economy through increased employment and community investment.
Collaborative Support from PNG Authorities and Communities
The extension process saw strong collaboration and support from various Papua New Guinea government bodies, including the Prime Minister’s office, the Mining Advisory Committee, and local government authorities. St Barbara also acknowledged the backing of the Simberi Landowners Association and other community stakeholders, highlighting the importance of maintaining positive relationships in the region for sustainable operations.
Looking Ahead
Lingbao Gold Group’s chairman expressed commitment to swiftly completing the investment settlement and working alongside St Barbara and Kumul to develop the project further. The combined efforts of these partners, supported by the extended lease, position the New Simberi Gold Project for a promising future as a high-quality, long-life, and low-cost gold asset.
Bottom Line?
With the mining lease secured, all eyes now turn to the upcoming investment decisions that will define Simberi’s next chapter.
Questions in the middle?
- What are the detailed financial terms and timelines for Lingbao and Kumul’s investments?
- How will the planned production expansion impact St Barbara’s overall financial outlook?
- What potential regulatory or community challenges could still affect the project’s development?