New Investor for Tolukuma Mine

By: PNG Business News August 16, 2021

The Tolukuma Gold Mine in the Central Province has a new interested applicant: Lole Mining Limited, a local mining firm.

This came after a previous agreement with Tolukuma Corporation Limited fell through owing to COVID-19.

Tolukuma Corporation Limited had previously agreed that the investor will spend K50 million on mine rehabilitation and environmental work, with K15 million going to the liquidator to pay outstanding obligations.

However, this did not go as planned, and in a letter to the Mineral Resources Authority, liquidator Andrew Pini notified them that this arrangement is no longer feasible and that a new investor is interested in purchasing a 100% interest in the mine.

The liquidator wrote to Mineral Resources Authority managing director Jerry Garry, requesting that MRA evaluate and transfer stake in the license to a new partner, Lole Mining Limited.

According to Garry, the new investor is a local mining firm that is listed on the PNG company register and has a partnership with international operators who can manage the mine.

According to him, a team from MRA has been charged with reviewing the new structure.

“The current mining lease 104 will expire on August 28 2022 however, either the liquidator or the new company if given the ok can apply for an extension based on how their findings of how much and how long they can mine.

“The last company did not report to MRA on how much gold reserve the mine currently has because Petromin did not do enough work and report to MRA as expected and that includes resource drilling.”

According to Garry, the new investor's plans will be subject to due process, with the Mining Advisory Council making a decision based on the investor's work program.


Reference: Yafoi, Melisha. Post-Courier (10 August 2021). “New Investor For Tolukuma Mine”.

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