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Trouble at Harmony's PNG project
Allan Seccombe
Posted: Mon, 05 May 2008
[miningmx.com] -- A dispute with landowners in Papua New Guinea has led to police basing themselves at two projects, including the near-production Hidden Valley mine, to protect staff and assets, the domestic Post-Courier online site reported on Monday.
Harmony, however, offered up a slightly different version of events and said it was just the Hidden Valley project that was affected.
"There is an issue around some locals involved in the workforce and it's nothing to do with the landowners," said spokeswoman Amelia Soares.
"It's hoped that the issues will be resolved in the next few days," she said. The Wafi-Golpu exploration prospect is unaffected, she said.
"There's been a work stoppage at Hidden Valley, but the production schedule remains on track," she added. The mine is due to begin production in mid-2008.
Work at Hidden Valley was suspended after 12 people were hurt in clashes between what local media described as those seeking jobs and those who are already employed on the mine.
The A$489m Hidden Valley mine will produce 3.5 million oz of gold and 50 million oz of silver over its 14-year life, Harmony has said.
Harmony has brought Australia's Newcrest Mining in as its partner on the Papua New Guinea projects, which include
the Wafi/Golpu exploration venture. Newcrest can earn in to 50% of the Papua New Guinea assets for US$525m over two phases.
According to the Post-Courier, "The big gold producer has shut down its operations at the Bulolo goldfields and police were rushed in to protect company assets and staff following disputes with landowners in the last two weeks."
"The company would not say if the shutdown at the Hidden Valley gold mine would delay the first gold production, expected by the end of this month."
Harmony brings out its March quarter results on 8 May.
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