Harmony Gold Mining Company Limited has received regulatory approval from South African authorities for its acquisition of the Hidden Valley mine in Papua New Guinea.
With this approval, Harmony’s acquisition of 50% stake in Hidden Valley and the surrounding tenement package has been completed.
This 50% stake was owned by its joint venture partner, Newcrest Mining.
Harmony acquired Hidden Valley mine to increase its annual production profile to 1.5Moz within three years.
Initially, the company plans to develop Stage 5 and 6 of the mine to spud approximately 1.4Moz ounces of gold and 27Moz of silver over a period of seven years.
Harmony estimates that Hidden Valley mine can contribute approximately 180,000oz of gold per annum to its total production profile at a cost of less than $950/oz.
Harmony CEO Peter Steenkamp said: “Harmony has the skills and technology to successfully recommission one of Papua New Guinea’s most recent mine developments.”
Harmony will release a production update on 10 November, which will also provide an update on the Hidden Valley mine’s life.