Out-going Mining Minister Honourable Sir Ano Pala, officially handed over the Mining Ministry to the new Mining Minister Honourable Muguwa Dilu recently, during a ‘hand-over-take-over’ ceremony.

Hon Dilu was appointed as the Mining Minister in a cabinet reshuffle last week, that saw his predecessor Sir Ano, appointed as the National Planning & Monitoring Minister.

The hand-over ceremony was attended by the Acting Managing Director of the Mineral Resources Authority (MRA), Jerry Garry, the Secretary of the Department of Mineral Policy & Geohazards Management (DMPGM), Harry Kore, their respective staff members, MRA board representatives, and representatives from the mining industry.

During the occasion, Hon Sir Ano highlighted that the priority projects for the government were the Porgera and the Wafi Golpu projects.

He told Minister Dilu that most of the work on these two projects had been done.

The porgera project had been officially declared open with the compensation agreement almost complete. The Wafi Golpu project is at an advance permitting stage for development, pending conclusion of negotiations of the Mining Development Contract (MDC).

However, he said there were other projects around the country that would need his political leadership and guidance.

Minister Pala expressed confidence in Minister Dilu, adding that he was a young, dynamic and a competent leader, and would provide good leadership for the sector.

Hon Sir Ano assured Hon Dilu, that the Mineral Resources Authority (MRA) and the Department of Mineral Policy & Geohazards Management (DMPGM) were two of the best state agencies. He expressed confidence in staff members of these organisations, saying that they (staff) were highly trained and are professionals in their respective roles. He urged Minister Dilu to support them and provide the necessary political leadership.

Minister Pala said during his tenure as the Mining Minister, he allowed the MRA and DMPGM staff to perform their roles independently without his involvement in the internal affairs of the two organisations.

He said his job was to make decisions based on competent advice from the two organisations.

He congratulated Hon Dilu on his appointment and wished him well in the future.

New Porgera Limited (NPL) is pleased to announce that the restart of Porgera is progressing well and is on track. First gold production is expected to be achieved in Q1 2024, as planned, subject to the Highlands Highway continuing to remain open and no further vandalism of project infrastructure.  NPL General Manager, Chad Coulin, acknowledged the tremendous effort made by the NPL workforce and the support of the regulator, the Mineral Resources Authority, to restart the Porgera mine in compliance with the laws of Papua New Guinea (PNG).

Following completion under the Porgera Project Commencement Agreement (PPCA) on 22 December 2023, the NPL team has stepped up and delivered outstandingly towards getting back into full production in Q3 as required by the PPCA.  The critical path to full production is re-standing or replacing relevant towers along the Hides Transmission Line.

In 2024 for the Porgera mine operations, there will be a spend of  K2.7B (US$749m) (est.), which is divided between K1.6B (US$442m) of direct operating costs (including K613m (US$174m) that will be capitalized prior to restart) and K1.1B (US$308m) of capital. The expected export revenue from Porgera gold sales in 2024 is K1.8B (US$504m) which will assist in boosting PNG’s foreign exchange reserves.

Expenditure on PNG sourced goods and services is estimated to be over K600m during 2024. Over 3,000 Papua New Guineans will be employed by NPL by the end of 2024 with a payroll for the year of K150m (US$42.6m). Royalties, which will be paid to landowners and the Enga Provincial Government, and 0.5% production levy to Mineral Resources Authority will amount to K63.4m (US$18m). Withholding taxes and custom duties payable to the National Government are estimated to be K28.2m (US$8m) for 2024.

NPL has already commenced payment of K4.6m in outstanding compensation fees for the period that Porgera was in Care & Maintenance and will shortly commence negotiation of the long term compensation agreements with landholder agents. 

The sharing and division of project benefits such as equity and royalties among stakeholders, will be agreed at the Government managed Development Forum process and be recorded in a Porgera Project Community Development Agreement that NPL will be a party to.

Under the Community Development Agreement, NPL will contribute through the Tax Credit Scheme to relevant infrastructure projects in the areas of health, education, roads and law and order.

Law and order continues to be a challenge and NPL calls for all stakeholders to support restart operations by contributing to peace in the valley with no further vandalism of critical infrastructure. 

St Barbara on Tuesday 23 January 2024 released a market announcement on the ASX regarding the progress of its drilling programs at the Simberi mine in New Ireland province.

The announcement highlights the following:

• St Barbara targeting an upgrade at Simberi of 1 Moz from Inferred Mineral Resource to Indicated Mineral Resource
  • 12 resource definition diamond holes completed so far for 2,348 metres.
  • Assay results received for the first two diamond holes support the interpreted ore zones between the main Pigiput and Sorowar pits.
• Completed 14-hole metallurgical diamond drill program for 1,856 metres.
  • Assay results returned for the first 10 holes and the first sample material was dispatched by air freight

“We are pleased to announce that excellent progress has been made with the Simberi metallurgical sample drilling and resource definition programs. Drilling has been progressing slightly ahead of internal schedules, while receipt of the assay results has been slower than anticipated,” said the Managing Director (MD) and Chief Operating Officer (CEO) of St Barbara Andrew Strelein.

The resource definition drilling campaign will support the work being carried out to convert a target of 1 Moz of the Inferred Mineral Resource to Indicated Mineral Resource. The results will be incorporated into an Updated Mineral Resource and Ore Reserve estimate at the end of FY24.

“We are very excited to now be able to focus both diamond rigs on the completion of the resource definition drilling program. We are targeting the conversion of 1 Moz of Inferred Mineral Resource to Indicated Mineral Resource."

"The completion of the metallurgical drilling is an important milestone for the 2023/24 campaign. The first batch of sample material was dispatched this week to the selected laboratory in Canada,” confirmed Andrew Strelein.

The resource definition drilling is targeting an upgrade at Simberi of 1 million ounces from Inferred Mineral Resource to Indicated Mineral Resource. This 1-million-ounce target is not new “ore”, but rather is an upgrade (or increase in the level of certainty) of the mineralisation. It allows an increased amount of ore to be included in the study work on the Sulphide expansion project.

"To date we have completed 12 of the 24 resource definition drill holes, with assay results received for the first two holes supporting the interpreted ore zones between the largest open pits, Pigiput and Sorowar pits," said Andrew.

St Barbara also completed the 14-hole metallurgical drill program, with the sample material being sent to Canada for test work on different aspects of the ore required for the Sulphide expansion project.

The focus over the next few months will be on the completion of the remaining resource definition drill holes, followed by the deep exploration holes.

Mayur Resources Limited is pleased to advise that it has finalised the funding structure with its partners on the Orokolo Bay Mineral Sands project in Gulf Province of PNG having executed a series of legally binding contractual agreements with PT SEA First Nickel Industry (PTSFNI). The executed contractual agreements cover the full funding of the Orokolo Bay project, entailing the construction and operation by PTSFNI of the Orokolo Bay Mineral Sands project. In return PTSFNI shall be provided a 51% equity stake in the project.

PTSFNI is a Nickel, Ferrous, Non-Ferrous and New Energy Materials Development Company with its activities primarily based in Indonesia. The shareholders of PTSFNI and its parent company are involved and responsible for the transformation of Indonesia’s downstream processing smelting operations in ferro Nickel and Stainless Steel operations.

PTSFNI have agreed to fully fund the development of the Orokolo Bay project through to annual nameplate capacity output of 400,000 tonnes of Vanadium Titano Magnetite (VTM) concentrate, 100,000 tonnes of Dense Medium Separation material, 1,000,000 tonnes of construction sand and 10,000 tonnes of Zircon concentrate (these nameplate capacities having been contractually agreed).*

PTSFNI shall provide all required capital, construction, and operational works ensuring the project is fully funded through to first cashflows. In the event that the development of the Orokolo Bay project to nameplate capacity exceeds A$25 million, PTSFNI will provide the additional funding to MIPP and receive a priority repayment of that additional amount above A$25 million.

PTSFNI shall be provided Class B shares in the Company’s 100% owned subsidiary Mayur Iron PNG Pte Ltd (MIPP), whilst it fulfils its contractual development and funding obligations. Upon satisfactory completion of such obligations and the project successfully achieving 2 successive shipments of VTM (circa 50,000 tonnes per shipment), such Class B Shares shall convert into Class A Shares in MIPP.

PTSFNI also has the exclusive right to earn a 51% equity ownership stake in the four other mineral sands projects that the Company currently possesses (Western, Gulf South, Malalaua and Amazon Bay), subject to further agreement at that time, with such terms intended to be broadly consistent with that adopted for the Orokolo Bay project. The exclusive right is a “right of first refusal” under which PTSFNI has the right but not the obligation to partner on Mayur’s four other project areas, with such right to be exercised by PTSFNI not later than 12 months from the date of commercial production from the Orokolo Bay project.

Mayur has also agreed for PTSFNI to become a significant shareholder in the listed parent Company via an offmarket placement (within placement capacity under ASX Listing Rules 7.1 and 7.1A), acquiring 9.9% of the Company at a 15% premium to the 30 day VWAP (being A$0.1912971) prior to the announcement of this Transaction. The metrics of the placement are 33,274,018 shares issued at a price of approximately 22 cents per share (being a 15% premium) for a consideration of AU$7,320,000. PTSFNI has agreed to make available such funds 30 days from this announcement and have also agreed to hold its Mayur Shareholding in voluntary escrow should funding from the placement proceeds be loaned to MIPP for working capital purposes and such loan remains outstanding.

KEY HIGHLIGHTS OF THE EXECUTED AGREEMENTS

• PTSFNI commits via legally binding Shareholder and Subscription Agreements (Agreements) to fully fund the development of the Orokolo Bay project for a 51% equity stake in MIPP. For development costs that exceed A$25 million, PTSFNI will receive priority repayments for those surplus amounts out of the Project’s cash flow.
• PTSFNI shall earn Class B shares in MIPP that shall transfer into Class A shares (Class A shares being issued and fully paid ordinary shares) in MIPP upon meeting predefined milestones, none of which are convertible into Shares in Mayur. The Class B shares are equivalent in all material respects to the Class A shares, other than that they rank in second priority to the Class A shares, and are not able to be converted into Class A shares until the predefined milestones are achieved. Mayur presently holds 100% of the Class A Shares on issue in MIPP.
• PTSFNI rights of being provided Class B and Class A shares for achieving milestones stated in the Agreements are secured by Security Deeds across the MIPP Portfolio (including its subsidiaries). The Security Deeds provide a general security over 51% of the assets and undertakings of each of MIPP and its subsidiary companies, Ortus Resources Ltd, and Mayur Iron PNG Ltd.
• PTSFNI shall be responsible for appointing an arms-length Engineering Procurement and Construction (EPC) contractor to build the mineral processing plant.
• PTSFNI shall give consideration to the engagement of a PNG based contract miner and construction subcontractor to complete mining and civil components of the capital construction requirements.
• MIPP may loan working capital from the Company subject to PTSFNI escrowing its shares until such borrowed funds are repaid in full. If funds are not repaid within a mutually agreed prescribed timeframe such escrowed shares may be cancelled. The cancellation of Mayur shares is subject to compliance with the Companies Act (in Singapore, being Mayur’s domicile) including obtaining necessary shareholder and/or class approvals.
• Working capital expenditure for the provision of expertise by both the Company and PTSFNI shall be allocated via mutually agreed service level agreements.
• All produced Hi Titanium mineral sand material (not allocated in any annual production volumes or forecast economics to date) shall be exclusively provided to PTSFNI for sale or further down stream processing.
• PTSFNI shall provide all required capital, construction, operational works ensuring the project is fully funded through to cashflow sales without any dilution of Mayur Shareholders at the Holding Company level post this Transaction being completed. In the event that the development of the Orokolo Bay project to nameplate capacity exceeds A$25 million, PTSFNI will provide the additional funding to MIPP and receive a priority repayment of that additional amount above A$25 million.
• Both Mayur and PTSFNI are to be paid back pro rata their audited capital expenditure in the development of the project, with surplus proceeds being split 51% PTSFNI and 49% Mayur. Mayur otherwise retains 49% of all future profits while PTSFNI receives 51% of all profits.
• PTSFNI to be given opportunity to roll out this development model to the other mineral sands licences in the MIPP portfolio as well as other available projects in the Mayur portfolio i.e. clinker/cement and solar.
• Reflecting the collaborative approach and alignment of interests in the Orokolo Bay Project, both Mayur and the Investor will each appoint two Directors to the Board of MIPP, ensuring balanced representation. The Board of MIPP will consist of no more than four Directors, facilitating efficient decision-making and strategic oversight.
• The Agreements with PTSFNI are governed by the laws of Singapore, being MIPP and Mayur’s place of incorporation.

Mayur Chairman, Mr Richard Pegum, commented:

“I am excited in realising the vision of Mayur’s Management after a decade of hard work being the 1st of our 5 mineral sands licences we have been developing. The arrangement is such that landowners and local communities will receive material employment directly coupled with the establishment of additional support service businesses. While the agreement minimises the dilution of Mayur Shareholders, it provides PTSFNI with an aligned parent company strategic stake across all of Mayur’s divisions being Minerals Sands, Limestone, Quicklime, Clinker/Cement, Power Generation, Renewable Energy, Special Economic Zone, Carbon Credits and Copper Gold.

“PTSFNI will also at the subsidiary level receive a 51% equity stake in the future economics of the Orokolo Bay project and the much larger portfolio of additional mineral sands projects the company has been developing over the last decade. PTSFN having a proven, large-scale track record in Indonesia, just next door to PNG (also in a total greenfield remote environment at an eye watering scale far bigger than the Orokolo Bay project), gave me immense comfort when recently visiting such facilities.

“PNG with the right proven and experienced development partners could also grow into a major down stream processing manufacturing hub. I wish to sincerely thank the local landowners and the PNG Government and Provincial administration for their ongoing support where we can now deliver the infrastructure and social projects we have committed to.”

President PTSFNI James Chen PHD, said:

“We have been looking at PNG for several years and have waited to partner with a group that has a proven track record and an advanced but sustainable bulk commodity portfolio of projects. Mayur have demonstrated their capability to originate and bring greenfield projects through the development cycle to the construction ready stage where we can now get involved in a significant way. We feel Mayur and its key management are highly aligned and wish to put our name alongside them as partners and shareholders.

“Our objective is to commence with the Iron and mineral sands portfolio, where value add downstream processing of a comprehensive recovery of iron, titanium and vanadium is one of our strengths. We ultimately see access to domestic steel, a key ingredient for a developing nation such as PNG, as important as, committing to a project where the landscape lends itself to ‘long term sustainable post mining industries’. Orokolo Bay has a unique landscape, where post mining land use such as corn plantation, rice plantation and fish farming as well as other agriculture opportunities are immense. These industries shall be established in partnership with landowners and respective local, provincial and state government agencies and shall set the economic foundation of the area, well after mining has ceased.

“Part of the rationale of PTSFNI taking a material position at the parent company of Mayur Resources is they have complementary advanced building material projects in Cement and Lime. In combination with our Iron/Mineral Sands investment the Company will have established essential and critical nation building ingredients of iron and cement that is needed to build and sustain any nation on planet earth, especially PNG as a developing country.

“Our attraction to be involved in PNG’s downstream processing building blocks commodity drive, is to replicate the success Indonesia has achieved, transforming its nation with downstream processing and industrial parks. PNG now has the same opportunity with SEZ’s, export & manufacture of its own products, replacing imports and generating jobs and wealth internally, rather than draining foreign currency reserves and still importing the most basic of building materials of cement and steel when all the raw materials reside in abundance within PNG.

“Knowing the Company’s Board had already made a Financial Investment Decision on the Orokolo Bay project and announced optimisation of a financing arrangement, we feel our mutual commitment to building high quality impactful projects in PNG can now be realised through this partnership. We look forward this year to being in the construction phase of the Orokolo Bay project with the endeavour of being ready to commission our first ore production.”

The Company notes that it is an issuer of CDIs and accordingly references to Shares in Mayur Resources Limited in this announcement refer to an issue of CDIs interchangeably.

Further information on PTSFNI

PTSFNI is an Indonesian company, registered in 2017 under the law of Indonesia. Mayur and PTSFNI have been in confidential discussions as to this transaction since October 2023 and both parties have undertaken extensive mutual due diligence as to the Orokolo Bay project which have included on-site meetings between Mayur senior executives and PTSFNI in both PNG and Indonesia over the last three months. Although PTSFNI is a private company incorporated in Indonesia, Mayur has confidentially assessed and validated PTSFNI’s financial, technical, and operational capability to complete its present and future obligations to Mayur and MIPP.

* The Company notes that the “nameplate capacity” referred to above is a contractually agreed requirement for PTSFNI to develop and commission a mining operation that is capable of achieving such state of performance. The Company notes that the nameplate capacities are derived from the DFS last updated in April 2022, a summary of which is also being released to market on 23 January 2024. All material assumptions underlying these production targets and forecasts continue to apply and have not materially changed.

Ok Tedi Mining Limited (OTML) generated a record K684 million (USD$184 million) for the month of December in 2023, the highest recorded monthly revenue for the year.

This result comes off the back of increased production and favourable metals prices, which were above budget for the month. Other factors contributing to the record revenue include strategic business improvements, operational efficiency, cost management, and uninterrupted copper shipments to buyers.

OTML produced Copper Concentrate of 45Kdmt to push up sales in December generating USD$107 million (K398 million). Additionally gold generated USD$75 million (K278 million) and Silver generated USD$2.4 million (K8.9 million).

OTML Managing Director and Chief Executive Officer, Kedi Ilimbit, said “We saw productivity improvements throughout the entire production chain from mine to mill and port. In addition, improved uptime and reliability on our crushing and processing plants compounded with exceptional operational efficiencies in the mine saw more quality ore being processed during the month.”

He said, “Support functions in the business including supply, logistics and power systems all worked in sync with the production team to deliver this exceptional performance. Effective cost controls were put in place by the Dry Weather Incident Management Team (IMT) including fuel conservation, contractor management, and rationalisation of critical supplies.”

Mr Ilimbit emphasised that this result underscores the success of the 'restore, reset, and reinvigorate' strategy implemented in 2023 to overhaul the business.

“We are continuously looking at transformational strategies to improve overall production efficiency whilst being cost effective. With these foundations, OTML will continue to generate revenue, remain profitable, and deliver to its shareholders and the rest of Papua New Guinea.”

Additionally, OTML continues to meet its environmental, legal, and social obligations.

“Maintaining a positive relationship with the mine impacted communities who give OTML the social license to operate, provides the company with the stability necessary to prioritise production and deliver benefits to its shareholders,” said Mr Ilimbit.

OTML recently declared a final dividend of K350 million to its shareholders, bringing the total dividend for the year 2023 to K450 million. This builds on the initial interim dividend payment of K100 million made earlier in the year.

With the Board's approval for the Mine Life Extension up to 2050, OTML envisions sustainable growth well into the future. The company is actively pursuing strategic growth projects, aligned with the current Strategic Business Plan, which are progressing successfully and anticipated to generate an impressive K30 billion (US$8 billion) in social benefits which include taxes, royalties, and dividend payments, over the next 27 years.

Ok Tedi Mining Limited (OTML) has surpassed its annual sediment dredge target of 10 Million Cubic Meters (Mm3) and its rehabilitation target of 35 hectares for 2023 at its Bige Operations, located 125km from the mine.

The Bige Operations dredged 10.3 Mm3 of river sediments and rehabilitated 40 hectares (ha) of sand stockpile in 2023.

This achievement highlights the company’s dedication to managing the sediment loads in the Ok Tedi and Fly River systems, thereby preventing adverse environmental and social impacts.

Although, the Bige Operations Team had set an annual sediment dredge target at 10Mm3 and 35ha of stockpile rehabilitation for 2023, they have exceeded those figures through hard work, perseverance and commitment despite a few challenges, including the dry weather.

Manager Bige Operations Naimen Kepan, said achieving these targets is important to OTML as it contributes to maintaining the company’s social license to operate while mitigating the impacts of riverine sediments on the environment and the associated implications on local communities.

“This is a crucial aspect of responsible mining and is in line with our Ok Tedi Environment Management Act (OTEMA) guidelines and requirements,” Mr Kepan said.

“Achieving our target in rehabilitation brings us a step closer to rehabilitating our (East Bank) stockpile in line with OTML’s Mine Area Rehabilitation Plan (MARP) requirements and Closure Plan to leave a self-sustainable environment for the local community post mine closure,” Mr Kepan said.

The collaboration between different OTML teams and the dredging contractor Dredeco, demonstrates an inclusive and integrated approach to safely achieving the set targets without major incidents.

Approximately 10 Mm3 (~17Mt) of sand is removed from the river each year and placed in engineered stockpiles for rehabilitation works.

OTML has dredged approximately 436Mt of sand from the river since 1998 and will continue to meet its annual dredging and rehabilitation targets.

K92 Mining Inc. is pleased to announce record quarterly production results for the fourth quarter (“ Q4 ”) of 2023 at its Kainantu Gold Mine in Papua New Guinea, of 39,101 oz AuEq or 33,309 oz gold, 2,728,623 lbs copper and 56,502 oz silver. Sales during the quarter were 31,931 oz gold, 2,995,585 lbs copper and 61,712 oz silver. Annual production achieved 117,607 oz AuEq or 100,533 oz gold, 7,690,477 lbs copper and 160,628 oz silver, exceeding the updated production guidance range of 111,000 to 116,000 oz AuEq. Annual sales were 96,013 oz gold, 7,446,581 lbs copper and 157,613 oz silver.

During the fourth quarter, the process plant delivered yet another quarterly ore tonnes processed record of 151,908 tonnes or 1,651 tpd, an increase of 25% from Q4 2022 and 25% from Q3 2023, and 21% greater than the Stage 2A Expansion plant design of 1,370 tpd or 500,000 tpa. On an annual basis, a record 503,484 tonnes of ore was processed, increasing 12% from 2022. Importantly, during the quarter, multiple throughput records were achieved (see Figure 2), with the latest daily throughput record achieved on November 19 th , of 2,320 tonnes processed ( 2 ) (69% higher than the Stage 2 Expansion design) and a 7-day throughput record achieved in November averaging 2,136 tpd ( 2 ) (56% higher than the Stage 2A Expansion plant design). The plant performance records demonstrate a meaningful immediate opportunity in terms of the operation having significantly greater plant capacity than expected. Importantly, as the Stage 2A and Stage 3 Process Plant Expansion design throughputs utilize the same conservative design parameters, these records demonstrate that the design of the Stage 3 Expansion process plant currently under construction has the potential for significantly greater capacity than its 1.2 million tpa design.

Concurrent with the record throughput rates, during the fourth quarter, the process plant delivered strong metallurgical recoveries of 91.7% for gold and 93.6% for copper. Head grades during the quarter averaged 8.7 g/t AuEq or 7.4 g/t gold, 0.87 % copper and 13.9 g/t silver.

In the fourth quarter, the mine delivered yet another material movement record, with 155,062 tonnes of ore mined (increase of 39% from Q4 2022) and 347,529 tonnes of total mined material (ore plus waste), increasing 21% from Q4 2022. During the quarter, 10 levels were mined, with mining on Kora conducted on the 910, 1110, 1150, 1170, 1285, 1305 and 1325 levels, and Judd on the 840, 1325, and 1345 levels. Long hole open stoping performed to design.

Overall mine development achieved a record totaling 2,649 metres, an increase of 19% from Q4 2022 and 19% from Q3 2023. The large increase in development advance during the quarter was driven predominantly through continuous improvement initiatives and importantly, ahead of the significant gains that we expect as new equipment arrives and major underground infrastructure projects are progressively completed through 2024. The twin incline also recorded significant advancement in Q4, with incline #2 (6m x 6.5m) advanced to 2,863 metres and #3 (5m x 5.5m) advanced to 2,838 metres as of December 31, 2023. The twin incline is over 98% complete of its 2.9 km design.

John Lewins, K92 Chief Executive Officer and Director, stated, 

“The fourth quarter represented another significant step forward for the Kainantu Gold Mine, delivering record quarterly production of 39,101 oz AuEq and delivering annual production of 117,607 oz AuEq that exceeded the top end of our production guidance range of 111,000 to 116,000 oz AuEq. Notably, the record quarterly production was underpinned by strong operational fundamentals, with record ore tonnes processed, record ore tonnes mined, record total mined material (ore plus waste) and record development advance achieved – many of these were also significantly higher than previous records (See Fig 1-2).

The performance of the process plant since the final commissioning of the Stage 2A Expansion in May 2023 continues to be a major positive and has significantly exceeded our expectations. In Q4, yet another quarterly throughput record was achieved, averaging 1,651 tpd, 21% greater than the Stage 2A Process Plant Expansion design throughput of 1,370 tpd. In addition to the quarterly throughput record, a new daily record of 2,320 tonnes processed was achieved on November 19 th and a 7-day throughput record averaging 2,136 tpd was achieved in November, 69% and 56% greater than the Stage 2A design, respectively (2 ) . It is important to highlight that the strong Stage 2A plant performance has significant potential positive implications for the Stage 3 plant under construction. The Stage 2A and Stage 3 Process Plant Expansion designs utilized the same conservative throughput parameters, indicating the potential for the ultimate throughput rate to be materially higher than the 1.2 million tonnes per annum design for the Stage 3 Expansion.

Mine performance was also very strong, delivering record ore tonnes mined of 155,062 tonnes, record total mined material (ore and waste) of 347,529 tonnes and record development advance of 2,649 m, increasing 39%, 21% and 19% from Q4 2022, respectively. We are particularly pleased with our increase in development advance, increasing by 16% or 371 metres of advance from the prior quarterly record set in Q1 2023. Importantly, a notable component of the increase in development advance has been driven by continuous improvement initiatives, ahead of the significant gains that we expect as our underground mine infrastructure projects are completed and new equipment arrives progressively through 2024.

We are very pleased with how 2023 concluded and look to take yet another major step forward in 2024.”

K92 Mining Inc. is pleased to announce the promotions of David Medilek to the position of President & Chief Operating Officer and Chris Kinver to the position of Vice President Projects & Engineering.

Mr. Medilek is a mining professional with over 16 years of mining capital markets, corporate strategy and technical operating experience. Mr. Medilek joined K92 in 2019, most recently holding the position of President, and prior to that was its Vice President Business Development and Investor Relations. Previously, Mr. Medilek was an equity research analyst covering precious metals companies, with Macquarie Group Limited; a mining investment banker with Cormark Securities Inc.; and a mining engineer with Barrick Gold Corporation in Western Australia. Mr. Medilek holds a Bachelor of Applied Science in Mining Engineering with Distinction from the University of British Columbia, a Professional Engineer designation in the Province of British Columbia, and is a CFA ® charterholder*.

Mr. Kinver is a Mining Engineer with approximately 20 years of experience in the mining industry, predominantly in senior management roles in underground operations and mine development with senior, intermediate and junior mining companies in Australia, Papua New Guinea, South America, Africa and the United Kingdom. Mr. Kinver joined K92 in 2019, and most recently held the position as the Company’s Project Director, Kora Expansion. Prior to that, Mr. Kinver held the positions of K92’s Mining Manager and also Evaluation and Studies Manager. Before joining K92, Mr. Kinver was with OceanaGold Corporation as the Project Manager for the Didipio Underground Mine for approximately 3 years, successfully transitioning the operation from an open pit to a 1.6 mtpa long hole stoping underground operation. Other senior management roles include: Underground Mine Manager with BHP Billiton at the Perseverance Nickel Mine, one of the largest underground operations in Western Australia; Underground Mine Manager with Barrick Gold Corporation at the Plutonic Gold Mine in Western Australia; and Principal Engineer at mining consulting firm Wardell Armstrong LLP. Mr. Kinver holds a Bachelor of Engineering in Mining and Mineral Engineering with Honours from Camborne School of Mines and a First Class Western Australian Mine Managers’ Certificate. He holds registrations with the Institute of Engineers Australia, The Engineering Institution of Zambia, and Registered Engineers of Tanzania.

The promotion of David Medilek and Chris Kinver are part of an organizational restructure which is designed to enhance the operational, technical and project execution capacity of the Company. This has already seen Peter du Plessis promoted from General Manager to Executive General Manager of the Kainantu operation and Fergus Hart appointed as General Manager of the Kainantu Gold Mine. In their new roles David and Chris will report directly to the Chief Executive Officer.

The Company is also announcing the departure of Mr. Warren Uyen as Chief Operating Officer. We thank Warren for his contributions over the past 5 years, particularly during the COVID-19 pandemic environment where the Kainantu Gold Mine not only continuously operated during this period but also delivered significant growth. We wish him well in his future endeavors.

John Lewins, K92 Chief Executive Officer and Director, stated, 

“Over the past several years, David and Chris have made considerable contributions to the success of the Company. They have demonstrated a strong commitment to the business, resourcefulness, plus a high level of capacity and potential to assume greater levels of responsibility. Congratulations David and Chris on your promotions – we look forward to your continued contributions.

These promotions are part of several steps the Company has taken in its progression to become a Tier 1 mid-tier producer with the commissioning of the Stage 3 Expansion scheduled to commence by the end of Q1 2025. At the Kainantu Gold Mine, the team has been notably strengthened, including the creation of a second level of General Manager in Q3 2023, with the appointment of Fergus Hart as General Manager and Peter Du Plessis being promoted from General Manager to Executive General Manager. Corporately, K92 established a regional office in Q2 2023 in Brisbane providing support for the operation in multiple areas.

We see a very exciting period ahead for the Company and look forward to the continued contribution to the success of K92 by David and Chris in their expanded roles.

I would also like to record my thanks, and that of the Company, to Warren Uyen for his contributions to the success of the K92 over the last five years and wish him all the very best for the future."

Prime Minister Hon. James Marape expressed his satisfaction recently at the signing of a groundbreaking agreement between Chinese company Ramu Nico Management Ltd and Kumul Minerals Holdings Ltd. The Memorandum of Understanding (MOU) signifies a significant step forward in fostering mutual trust and cooperation between China and Papua New Guinea, particularly in the realm of downstream processing of nickel and cobalt.

The MOU, signed by Ramu Nico Management Ltd Chairman Wang Zhou and Kumul Minerals Holdings Ltd Managing Director Sarimu Kanu, solidifies the collaboration to engage in the downstream processing of nickel and cobalt within Papua New Guinea. Ramu Nico Management Ltd, as the majority partner in the world-class US$1.2 billion (K4.12 billion) Ramu nickel-cobalt mine near Madang, is at the forefront of this transformative venture.

Prime Minister Marape, who witnessed the signing alongside Chinese Ambassador H.E. Zeng Fanhua, emphasised the historical significance of this development. He recalled his State visit to China last October, during which he met with President Xi Jinping, and highlighted the commitment made during those discussions to encourage Chinese involvement in downstream processing in Papua New Guinea.

“Our government has been resolute in its desire to transition from being a raw produce exporter to an exporter of finished products,” Prime Minister Marape stated.

“I am pleased to see this vision materialise through the swift response and commitment shown by Ramu Nico Management Ltd, following instructions from the Chinese Government.”

During his meeting with President Xi Jinping, Prime Minister Marape received assurances that China takes seriously the practical needs of Pacific island countries, affirming that “China does not make empty promises”. He expressed gratitude for China’s prompt response and underscored the country’s readiness to engage in downstream processing across various sectors, including agriculture, fisheries, and forestry.

Prime Minister Marape extended his appreciation to Ambassador Fanhua and Chairman Wang, considering this agreement as the starting point for Papua New Guinea’s journey towards becoming a downstream processor of its raw produce. He urged more Chinese companies to join hands in this transformative endeavor.

“I thank the Chinese Government and Chinese companies for recognising the imperative for Papua New Guinea to build a robust and diversified economy through downstream processing,” Prime Minister Marape said.

“I extend an invitation to more Chinese companies to come and partner with us in the downstream processing space.”

Ok Tedi Mining Limited (OTML) announced a final dividend payment of PGK350 Million to its shareholders on 28th December 2023, bringing the total dividend to K450 Million for the year.

The Company had declared an initial interim dividend payment of PGK100 Million on 26th October citing a positive outlook for a final dividend payment in December 2023.

OTML Board Chairman, Jeffrey Innes, thanked employees, contract partners and the mine impacted communities for their support throughout 2023.

He said that 2023 was a restore and reset year for OTML marked by the appointment and restructure of a new senior leadership team.

Mr Innes said the need for this change in leadership was to bring forth a comprehensive overhaul of restoring, resetting, and reinvigorating the entire business while focusing strategic emphasis on business improvement, cost efficiencies and liquidity, stakeholder engagement, long-term planning and implementation of Tax Credit Projects aligned with the National Government Development Strategy 2050.”

With the OTML Board approval of the Mine Life Extension up to 2050, Mr Innes said the Company envisions sustainable growth up to 2050, with a particular focus on energy transition.

Mr Innes said Key strategic Growth 2050 projects are in place and progressing well based on the Company’s current Strategic Business Plan and is expected to generate K30 billion (US$8 billion) in cash flow.

He added that the “El Nino onset also affected the OTML operations for a while in November however the Company has implemented its Dry Weather Management Plan to see it through the challenges and is pleased to declare that Ok Tedi remains profitable and continues to deliver to our shareholders”.

The National Government is taking strategic measures to address the depleting mineral resource inventories and decline in mineral exploration.

Mining Minister Hon Sir Ano Pala told the 17th PNG Resources & Energy Investment Conference in Sydney Australia, that major operating gold and copper mines in the country would potentially reach the end of their mine lives by about mid 2050s and mid 2060s respectively.

“In a nutshell, Hidden Valley may close in 2027, followed by Simberi in 2030, Ok Tedi, Porgera and Ramu possibly close by about 2040 and Lihir by about 2055. Frieda River and Wafi-Golpu may close around 2065.”

Considering the potential closure of these mines, and the declining exploration activities over the last five years, two major intervention programs have been initiated by the government. The programs are:

1. Investment in research for new mineral deposits; and
2. Investment in diversification into growing the Renewal Economic Sector. Investment in research for new mineral deposits in new frontiers

In our efforts to excite exploration and discovery for new mineral deposits to sustain mining industry in PNG, the Mineral Resources Authority (MRA) had commenced identification of gaps in the National Geoscientific datasets.

The MRA is in the process of designing and implementing a National Work Program to cover gaps and in specific areas of National Interests.

More importantly, the MRA will perform research and exploration for

1. Strategic Minerals to meet global demands required for transition energy; and
2. deep-seated orebodies, in particular, conceptual porphyry copper -gold targets.

Mining Minister Hon Sir Ano Pala recently presented the country’s mineral production outlook to a room packed with PNG and overseas delegates from government and private sectors, attending the 17th PNG Resources & Energy Investment Conference in Sydney.

Minister Pala said PNG expected a strong total annual copper production for a period of over 30 years after Wafi-Golpu and Frieda River projects are commissioned as operating mines. He said during the 30 year period, production may average between 500,000 tons, to a maximum of 700,000 tons per annum.

He said these mega projects would take five to seven years of construction and potentially by 2030, the projects would become operating mines, adding onto the list of existing operating mines such as Ok Tedi, and possibly Kainantu.

“Indeed, PNG will become a significant copper producer for critical minerals in the globe, possibly for over a period of three decades,” said Sir Minister Pala.

He said gold production from PNG had dropped from over two million ounces of gold, to about 1.3 million ounces gold per annum, since closure of the Porgera mine.

PNG’s total gold annual production may average around 2.5 million ounces with the re- opening of Porgera mine and Stage 4 expansion of K92 mine, by the year 2026.

The largest gold producer is Lihir mine which may close by about mid 2050’s. However, K92, Wafi-Golpu and Frieda River may substitute for any declining production.

Nickel and cobalt production outputs may double or triple up to 90,000 and 9,000 tons per annum, respectively if Ramu MCC’s proposal to double its production output, and the Mambare or Oro Nickel is brought into production.

Minister Pala said in general the government expects that PNG would benefit immensely from increased metal market size and increased metal price forecasts for the next decade. He said reliable analysts were forecasting the global mining metals market size to grow at a compound annual growth rate of 4.8% during the next decade.

Furthermore, the Minister said, metal prices were forecasted to triple and possibly quadruple over the next decades, for copper, gold, nickel and cobalt, which will remain the principal metal commodity exports from PNG.

Prime Minister Hon. James Marape has welcomed the reopening of Porgera Mine, which is set to officially restart under SML 13 on 22 December 2023 with New Porgera Limited (NPL) expecting its first gold in the First Quarter of 2024.

Prime Minister Marape said New Porgera examplifies a new direction in the handling of negotiations with mining companies for better benefits-sharing for Papua New Guinean stakeholders, as he commended developer Barrick Gold Corporation for settling at a win-win agreement for all involved parties.

He said, “It has been a long road we have travelled to the reopening of Porgera Mine, but it has been worth the effort. 

“The result is a partnership between our country and two leading global mining companies – Barrick and Zijin.

“For the first time, such an agreement has given a majority ownership in a major resource project to Papua New Guinean shareholders.”

Under the renegotiated arrangements, New Porgera has 51 percent ownership by PNG stakeholders. They include the State via its mining company Kumul Minerals Holdings Limited, Enga Provincial Government, and local landowners. Barrick Gold Corporation and Zijin Mining Group together have 49 percent share.

PM Marape said, “New Porgera will deliver unprecedented benefits to the people of Papua New Guinea. 

“Over the 20-year life of mine, PNG shareholders, which comprises Porgera landowners, Enga Province and the State, will receive 53 percent of Porgera’s overall economic benefits.  The investors will share the remaining 47 percent.

“The 3 percent royalty to landowners is part of these benefits so landowners are big winners with 15 percent equity as they getting 18 percent harvest value of gold from first production.

“At an assumed gold price of US$1,800 per ounce, PNG shareholders can expect to receive nearly US$7.3 billion (approximately K27.6 billion) over 20 years and US$2.8 billion (K10.6 billion) in the first ten years.  As we all know, the current gold price is much higher at approximately US$2,000 per ounce.”

As it stands, New Porgera Limited looks set to be a significant contributor to the National Treasury, with a 32 percent Corporate Tax rate imposition and facing an increase in Royalty from 2 percent to 3 percent.

Prime Minister announced the following steps back to full production as follows:

• Official restart of operations on 22 December, 2023.
• Re-commissioning to be completed in the coming weeks.
• Mining and processing operations to restart in the First Quarter 2024.
• First Gold production expected in the First Quarter 2024.
• Full production throughout in the Third Quarter of 2024.
• Employee ramp-up to occur throughout 2024, reaching 3,200 employees by year’s end.

PM Marape said the return of the mine to full production depended on the Hides Power Station and transmission lines being brought back into operation following recent acts of vandalism, and there being no further damage to the mine and essential infrastructure that supports the project, such as the Highlands Highway.

“Separately, the Community Development Agreement negotiations will be conducted starting in the first quarter of 2024, led by the Mineral Resources Authority on behalf of the State. We expect to conclude this at the earliest but not more than two years so our landowners of all project areas, including powerlines and source and riverine areas, can benefit.

“I want to thank President Mr Mark Bristow and Barrick Gold Corporation for ensuring that PNG got more in the New Porgera SML 13 for the next 20 years.

“New Porgera is a fine example for mining companies demonstrating that they can still make money in the new benefit-sharing arrangement we have carved out with Barrick.

“I welcome the reopening of Porgera this year,” said Prime Minister Marape.

Ok Tedi Mining Limited projects over K30 billion (US$8.0 billion) in Social Benefits, which includes taxes, royalties, and dividend payments, over the next 27 years.

This is based on the company’s current Strategic Business Plan which includes Life of Mine (LOM) extension to 2050, ushering in significant sustainable development for mine operation impacted communities, Western Province, and Papua New Guinea.

OTML Managing Director and Chief Executive Officer, Kedi Ilimbit, revealed this today (12th December) at the 17th PNG Energy & Investment Conference in Sydney Australia.

Mr Ilimbit said what will underpin this benefits are several strategic undertakings which began in 2023 driven by our new vision: ‘We operate with excellence, maximising the value of our mineral resource, in an environmentally responsible way, to deliver sustainable economic and social benefits to our communities and the people of PNG.’

“This year was a transformative one for OTML marked by the appointment of a new Board Chairman in Jeffrey Innes, and my appointment as MD & CEO. This change in leadership was the catalyst for a comprehensive overhaul of restoring, resetting, and reinvigorating the entire business with a senior leadership team restructure, strategic emphasis on business improvement, cost efficiencies and liquidity, stakeholder engagement, long-term planning, and implementation of Tax Credit Projects aligned to the National Government Strategy.

Mr Ilimbit highlighted strategic key projects which include the East Wall Cut Back, Engineered Waste Rock Dump 2, and the Tails Storage Facility (TSF), and no underground operations. This approach is expected to generate a robust K28 billion (US$7.5 billion) in cash flow.

Looking ahead, OTML envisions sustainable growth up to 2050, with a particular focus on energy transition.

“Key enablers for these strategic projects include the East Wall Cut Back, Cleaner Safer Haul Truck Re-fleeting, Engineered Waste Rock Dumps (EWRD), the Tailings Storage Facility (TSF), and the Support Infrastructure Renewal (SIR) where we are committed to cleaner, safer power generation, energy-efficient housing and accommodation, and environmentally conscious transportation,” said Mr Ilimbit.”

Meanwhile, Mr Ilimbit also said OTML is currently monitoring the current El Nino weather pattern and has an Incident Management Team that meets regularly to plan around the dry weather impact.

“Whilst the challenges of the El Nino phenomenon are real and have affected our operations recently, we are optimistic our operations will continue and we look forward to delivering benefits to our shareholders,” said the MD and CEO.

New Porgera Limited (NPL) is pleased to announce that all legal and contractual conditions necessary for the reopening of Porgera Mine have now been met and the mine is set to officially restart operations on December 22, 2023. With the ramp up of operations, first gold is expected to be poured in the first quarter of 2024.

As Prime Minister Marape noted in a speech recently in Sydney, the long road to Porgera’s reopening has reached the finish line. The result is an unprecedented partnership between Papua New Guinea and two leading global mining companies, Barrick Gold Corporation (Barrick) and Zijin Mining, which for the first time gives majority ownership in a major resource project to Papua New Guinean shareholders.

New Porgera will deliver unprecedented benefits to the people of Papua New Guinea. Over the 20-year life of mine, PNG shareholders – comprised of Porgera landowners, Enga province and the State – will receive 53% of Porgera’s overall economic benefits. The investors will share the remaining 47%.

At an assumed gold price of US$1,800 per ounce, PNG shareholders can expect to receive nearly US$7.3 billion (approximately Kina 27.6 billion) over 20 years and US$2.8 billion (Kina 10.6 billion) in the first ten years.

New Porgera Limited will be managed by Barrick (Niugini) Limited and employ more than 2,300 people by June 2024 and over 3,000 by the end of 2024.

Freeport Resources Inc. is pleased to announce Papua New Guinea’s Minister for Mining, the Honorable Sir Ano Pala, has approved the renewal of the Yandera Copper Project’s Exploration License 1335 (“EL”) through November 19, 2023, in accordance with the regulatory processes prescribed by the Papua New Guinea (“PNG”) Mining Act.

“We are pleased to have successfully completed the exploration license renewal process and would like to thank the Mining Advisory Council and the Government of PNG for their dedication in advancing largescale resource projects such as Yandera Copper,” commented Dr. Nathan Chutas, Senior Vice-President of Operations for Freeport Resources. “The renewal Yandera Copper Project’s Exploration License demonstrates the commitment of the Government of PNG to build strong, working relationships with mineral exploration and development companies such as Freeport Resources, to drive economic growth through the responsible development of Papua New Guinea’s vast natural resources,” said Dr. Chutas, who continued, “This is a major milestone for the Company. More than USD $200 million has been expended on the project since 2005, culminating in a comprehensive 2017 Pre-Feasibility Study delineating one of the world’s largest undeveloped copper resources. With the license renewal now in hand, we are anxious to commence work on the Definitive Feasibility Study and accelerate ongoing discussions with potential strategic partners for development of the mine.”

Yandera - Definitive Feasibility Study

License EL 1335 covers the 245.5 square kilometer (“km”) tenement comprising Freeport Resources’ wholly-owned Yandera Copper Project. Approximately USD $200 million in exploration and development expenditures have been spent on EL 1335 since 2005. Work completed and studies funded to date include approximately 154,600 meters of exploration drilling, the vast majority of which has focused on the Yandera Central deposit, as well as scoping studies, engineering studies, environmental studies, a PreFeasibility Study*, and infrastructure-related studies.

The renewal of EL 1335, through November 19, 2023, allows Freeport Resources to commence work on a Definitive Feasibility Study to advance the Yandera Copper Project toward a Final Investment Decision. Concurrent with the Definitive Feasibility Study program, Freeport Resources will accelerate ongoing discussions with key international strategic investors and prospective partners for development of the Yandera Copper Project. Demand for copper is forecast to undergo unprecedented structural change driven by the global energy transition with mined copper supply forecast to enter a deficit position starting as early as 2025 (see Copper Demand Chart below). The project’s proximity to Asia, the world’s largest consumer of copper metal, positions the Yandera Copper Project as an attractive new source of long-term copper supply.

The Definitive Feasibility Study will build on earlier work undertaken with local and regional communities to determine opportunities to achieve mutually beneficial partnerships and sustainable long-term social benefits related to job creation, indigenous advancement, health and wellness, environment, education and community development. Freeport Resources is also planning a wider exploration program of porphyry copper targets within the largely underexplored 245.5 square kilometer land package.

About the Yandera Copper Project

The Yandera Copper Project is located in the highly prolific PNG Orogenic Belt, the same geological arc as some of the world's largest gold and copper deposits including Grasberg, Frieda River, Porgera, Lihir, WafiGolpu and Kainantu. Yandera is a project of strategic national interest in PNG and has the potential to become one of the country's most significant copper mines.

The Yandera Copper Project is 95-km southwest of the capital city of Madang Province and 235-km to the northwest of Lae which is the largest port city in PNG and an important industrial center. As one of the largest undeveloped copper resources* in the world, the Yandera Project has the potential to support communities and create jobs along the Yandera Corridor. The Company anticipates the potential economic influence of the Yandera Copper Project could span 5 provinces and create wealth for generations including, but not limited to, strategic road and highway building, power generation and related infrastructure.

A Preliminary Feasibility Study titled, Independent Technical Report on the Yandera Project - PreFeasibility Study*, prepared by Worley Parsons, with an effective date of November 27, 2017, estimated a historical open-pit, measured and indicated resource of 728 million tonnes grading 0.39% copper equivalent.

* Independent Technical Report on the Yandera Project – Pre-Feasibility Study, prepared for Era Resources Inc. and dated effective November 27, 2017. The study was prepared prior to the Company acquiring an interest in the Yandera Project, and is derived from historical estimates which the Company is not treating as current. This information is intended to provide readers with context on historical analysis conducted on the Yandera Project, however the Company cautions that a qualified person has not done sufficient work to classify any historical estimates in respect of the Yandera Project as current and any analysis conducted by previous owners of the Project may rely upon assumptions which are no longer reasonable or accurate in the context of the current market.