Kainantu Gold Mine

K92 resumes underground production

This follows the temporary halt on production after an arson attack by landowners which resulted in millions of kina worth of damages.

K92 announced that following the resolution, full return to production was expected by October.

The arson attack was a result of discontent by the Bilimoia Interim Landowner Association (BILA) who claimed outstanding issues had not been settled by the company.

​Preps underway for Kainantu MoA review

Mineral Resources Authority (MRA) Managing Director, Philip Samar, said a series of consultations will take place before the actual review process begins.

Currently, MRA is brokering resolutions to an eight-point petition that the Bilimoia Interim Landowner Association (BLA), which represents landowners from the mine site, want addressed.

MRA stepped in to address the petition following the arson attack on mining equipment by locals last week, forcing mine operator K92 Mining Inc to temporarily shut down production.

​Mine attack threatens investor confidence: MRA

In a media conference yesterday, Samar said the attack on the mine developer K92 Mining Inc, which was a new company to PNG and who invested millions of kina to revive the mine, had serious implications.

He said the company spent the last two years carrying out maintenance at the mine site and only began selling in July, of which the true benefits were yet to be seen when the attack occurred.

“It’s really discouraging,” said Samar.

“There will be people (investors) watching and wondering what’s going to happen next.”

Police now stationed at Kainantu Gold Mine

Eastern Highland Provincial Police Commander, Alex N’Drasal, told Loop PNG that two units from the Mobile Squad 15 have been deployed to the site following the incident last Thursday.

It is alleged that the landowners went on a rampage at the mine site over outstanding landowner issues, one of which includes royalties.

N’Drasal said the situation has been contained with police presence ensuring normalcy in the area.

K92 Mining announces drilling results

The mine is currently ramping up towards commercial production.

The company says the latest results are from the ongoing campaign of close spaced underground diamond drilling which is part of a comprehensive grade control strategy commenced in September 2016.

Results from ongoing drilling include

Preparation on to re-export Kainantu gold

And K92 Chief Operating Officer, John Lewins, says the company plans to ramp up to full production by around April.

K92 Mining Inc. has spent in excess over K24 million in refurbishment and rehabilitation costs to bring the operation back into production.

“It had been sitting for eight years,” Lewins tells Business Advantage PNG.

“There was a fair amount of capital required for refurbishment and rehabilitation of the mine.”