St Barbara Ltd. is working to steady its footing in Papua New Guinea as the gold miner juggles a long-awaited mining lease renewal and a complex tax reassessment — two issues with big implications for the future of its Simberi operations.
The Australian-listed company confirmed that Papua New Guinea’s Mining Minister Rainbo Paita has received formal documentation recommending an extension of the Simberi Mining Lease 136 through to 2038. The advice came from the Mineral Resources Authority following a decision by the Mining Advisory Committee in August.
For the more than 1,000 employees on Simberi Island — most of them Papua New Guineans — the lease extension would secure jobs and community programmes tied to the mine for another decade. The mine has been operating since 2012 and has become a major employer in New Ireland Province, where economic opportunities are limited.
But first, St Barbara must resolve a lingering tax issue with the Internal Revenue Commission. The company has been disputing reassessments issued in December 2024, which it says it met with a formal objection earlier this year.
The IRC has since indicated that the original assessments will be revoked, with revised figures expected as soon as 19 September. With the nation in the midst of its 50th independence celebrations, St Barbara has signalled patience but is eager for clarity.
“The Minister has been clear that once the reassessments are clarified and the tax matters are regularised, the mining lease extension can proceed,” St Barbara Managing Director and CEO Andrew Strelein said after speaking directly with Paita.
The stakes are high. The uncertainty has already weighed on financing preparations for the Simberi Expansion Project, which would increase production and extend the life of the mine. Without resolution, the timeline for a final investment decision remains under pressure.
Still, the company stresses it is operating in good faith. Simberi Gold Company Ltd., St Barbara’s local subsidiary, has contributed royalties and community benefits for more than a decade, with strict governance and more than 90 percent of its workforce drawn from PNG.
“We remain in full compliance with all tax obligations and are committed to working constructively with the IRC to finalise the matter,” the company said.
For many in New Ireland Province, the mine is more than a workplace — it has funded schools, health facilities, and basic infrastructure in one of PNG’s more remote regions. With independence week festivities fresh in people’s minds, the prospect of a long-term future for Simberi is both a corporate and a community concern.
