The Tolukuma Gold Mine (TGM) is scheduled to go into full production next month, according to subsidiary Asidokona Mining Resources Pty Limited.
Executive Director, Vincent Siow, announced this during the revised mining memorandum of agreement (MOA) signing last week.
“Next month onwards, we will be starting full production,” said Siow.
However, he highlighted that the equipment at the mine was quite old and they needed to re-equip the operations.
In 2008, Petromin, now Kumul Mineral Holdings Limited, acquired TGM however, the mine had incurred losses of over K170 million and relied solely on funding from Petromin.
The Petromin Board and management decided that the mine was better off divested and thus was sold to Asidokona.
The Singapore-based company has injected $40 million into revitalising the mine.
According to a media statement by Petromin PNG Holdings Limited on October 7th 2015, the agreement gave the landowners and Central Province Government a 10 percent shareholding in the new company at no cost.
The agreement also included a K6 million road infrastructure project to be undertaken by the company.