Harmony commits to K12m exploration program

Over K550 million will be invested by Harmony Gold Limited in the Hidden Valley mine in Morobe Province over the next two years.

This is part of the company’s expansion plans

The investment shows the confidence the company has in the gold price and its capacity to expand in PNG.

In an interview with Business Advantage PNG, Chief Executive Officer, Jahannes Van Heerden, says “With so much global economic uncertainty, gold will retain its appeal as a store of value. We will take a measured view on any investment’s decent returns.”

Harmony aims to produce 1.5 million ounces of gold within the next there years at a cost of $950 per ounce.

This will be achieved with expansion of operations into the underexplored areas of the Hidden Valley and Wau.

The existence of an operating processing plant gives Harmony a distinct advantage, with the company committing K12 million towards an exploration program in Wau next year.

‘There is potential upside for exploration within the PNG region and also the potential for exploration in areas surrounding the Hidden Valley mine,” van Heerden says.

“Brownfield opportunities will come from exploration around Hidden Valley.”

The Hidden Valley Joint Venture is one of three joint ventures between Newcrest Mining Limited and Harmony, collectively known as the Morobe Mining Joint Ventures (MMJV).

Cedric Patjole