HARMONY Gold expressed confidence it would produce more than 180,000 ounces of gold from its Papua New Guinea mine, Hidden Valley, in the 2019 financial year after the asset it re-engineered last year reached commercial levels of production in June.
“The investment in the stage 5 and 6 cutback was delivered safely, on schedule and below budget and we are confident that Hidden Valley will produce more than 180,000 oz in FY19,” said Peter Steenkamp, CEO of Harmony Gold in a statement.
Progress was also logged in respect of the firm’s application for a special mining lease. Steenkamp said that “… engagement … is progressing well”. An Environmental Impact Statement (EIS) was submitted to the Papua New Guinea regulatory authority, the Conservation and Environment Protection Agency on June 25, the company said.
“The EIS has been prepared as the statutory basis for the environmental, social and cultural heritage assessment of the Wafi-Golpu Project under the Environment Act 2000 and will inform a decision by the Papua New Guinea Government whether
to grant an Environment Permit and, if so, under what conditions,” Harmony said.
Harmony announced in September 2016 that it would buy out joint venture partner Newcrest Mining’s 50% stake in Hidden Valley and invest $180m in the mine in an effort to double its production.
Turning Hidden Valley into a success would represent a major victory for Steenkamp and help silence his critics who said the mine was a serial under-performer. “Hidden Valley is an asset that we are familiar with,” said Steenkamp in February, 2017.
“We know the orebody, have strong relationships with government and the communities, and have a robust reinvestment plan that will generate a return for our shareholders,” he added. “Technically, there’s no reason why this mine cannot do well.”
