Chinese mining company Lingbao Gold Group has agreed to acquire St Barbara Ltd.'s remaining interest in Tabar Islands Holdings Pty Ltd., paving the way for Lingbao to take full ownership of the New Simberi operation and exploration interests across Papua New Guinea's Tabar Islands.
The agreement, announced Sept. 10, is valued at A$410 million in cash, with a further A$43 million repayment to St Barbara for its construction capital contribution between April 2026 and the signing of the deal.
Completion is targeted for March 2027, subject to conditions and required regulatory and shareholder approvals.
The deal follows Lingbao's acquisition of a 50% interest in the company holding the Simberi business, completed April 1. The latest transaction would give Lingbao full ownership of Tabar Islands Holdings, which holds the New Simberi operation and exploration interests across the Tabar Islands.
Lingbao will also fund St Barbara's share of capital requirements between signing and completion, according to the announcement.
The transaction comes as New Simberi moves towards a major expansion phase. Its initial life-of-mine plan forecasts about 2.2 million ounces of gold production, including about 2 million ounces payable, over an initial 13-year mine life.
Huan Cai, managing director and chief executive officer of the Simberi companies, said the investment was an important step in Lingbao's strategy to build an international mining business.
The company said it intends to build on existing relationships with employees, communities, government, landowners and other stakeholders while maintaining safety, environmental and operational standards.
The proposed ownership change follows a separate agreement under which Kumul Minerals Holdings Ltd., through subsidiary Eda Minerals Ltd., would acquire a 20% interest in New Simberi for A$100 million, subject to approvals.
Tabar Islands Holdings was established as the corporate structure holding the New Simberi operation and the Tabar Islands exploration interests, with St Barbara and Lingbao represented in the entity.
Lingbao said continuity of operations, safety, compliance and workforce capability would remain priorities during the ownership transition. The company will continue to operate under Papua New Guinean laws and regulatory requirements.
The transaction comes amid growing interest in Papua New Guinea's mining and exploration sector, with Mining Minister Solen extending an invitation for greater Chinese investment and participation in the industry following a recent mining investment conference in China.
For Simberi, New Ireland province and the wider Tabar Islands, the proposed transaction marks another change in ownership as the New Simberi operation moves towards its next phase of development.
