Newcrest invests over $US3 billion in PNG

Newcrest is a major economic contributor to Papua New Guinea, investing more than three billion US dollars (K9.74 billion) into PNG since 2010.

This was the scenario revealed to guests at a function in Port Moresby recently by Peter Hay, chairman of the board.

Accompanied by managing director and CEO Sandeep Biswas and the management team, the Board visited Papua New Guinea  last week to see the Company’s largest mine at Lihir in New Ireland Province.

The Board and management team also had a series of productive meetings with government, landowners, communities and employees.

Prime Minister Peter O’Neill was also invited to the function along with other Members of Parliament.

Finishing their visit in Port Moresby, the Board hosted a function at the Grand Papua Hotel last Thursday night to thank key stakeholders, including Government Ministers and officials, senior diplomats and business leaders, for their continued support for Newcrest’s presence in PNG.

Hay told guests at the function that as a growing and dynamic country, it is important that the Board continually refresh its understanding of PNG, which is such an important part of Newcrest’s global business.

“I would like to thank Lady Winifred Kamit, who has been helping us in this regard since her appointment to the Newcrest Board in 2011,” Hay said.

Hay also said the recent appointment of two senior managers with extensive experience in PNG, Ian Kemish as executive general manager for external affairs and social performance, and Graeme Hancock as general manager for social performance, had added significantly to Newcrest’s capacity to understand and engage with the country.

“Papua New Guinea represents Newcrest Mining’s most significant presence outside of Australia,” Hay said.

“This strong association is reflected in our listing on the Port Moresby Stock Exchange and in the fact that Papua New Guinea accounted for 40 percent of Newcrest’s total gold production in the twelve months to 30 June 2016.

“In the last financial year alone, our operations spent over one billion Kina in Papua New Guinea on local contractors, employee wages, community compensation and development programs on top of government royalties, taxes and levies.”

Hay specifically noted the improving operational performance at Lihir and the benefits that it is providing to all stakeholders.

“While Lihir has had some operational challenges over the years, the significant effort applied under Newcrest ownership to de-bottleneck and increase uptime of the process plant, reduce costs and improve efficiencies is starting to pay off. The Lihir team delivered a record annual gold production of 900,000 ounces under Newcrest ownership in the 2016 financial year which is an important step along the road to the mine achieving its full potential.”

Hay took the opportunity to explain that while Newcrest has agreed to sell its 50 percent interest in the Hidden Valley mine in Morobe Province, it retained its 50 percent ownership of the world class Wafi Golpu copper and gold project.

“Independent assessments indicate that the Wafi-Golpu project, if developed, would have a significant positive impact on Papua New Guinea’s economy, with billions of dollars of direct capital investment and hundreds of millions of dollars in recurrent operating expenditure.

“With a potential mine life of over 30 years, it would also generate benefit streams to landowners and host communities, as well as creating hundreds of new jobs and business development opportunities during construction and operation.

“A key factor in the decision to construct the mine will be the fiscal, regulatory and legislative framework that will underpin its development; to this end we look forward to working closely with the PNG Government in advancing the project.”

(From left: Newcrest PNG Country Manager Peter Aitsi, Board Chairman Peter Hay, Prime Minister Peter O'Neill and Newcrest CEO Sandeep Biswas. Picture by Alfred Kaniniba)

Author: 
Alfred Kaniniba