Harmony Gold takes over Newcrest stake in Hidden Valley mine
Harmony Gold, the South African gold-mining and exploration company, has announced that the company will own 100 percent of the Hidden Valley mine in Papau New Guinea. This comes after Australian gold producer, Newcrest, has agreed to sell its half of the Hidden Valley Joint Venture.
Harmony will now assume all liabilities and expenses related to the JV and mine, including rehabilitation costs and remediation obligations.
The operation was owned by the Hidden Valley Joint Venture (HVJV), one of three unincorporated joint ventures between subsidiaries of Newcrest (50 per cent) and Harmony Gold Mining Company Limited of South Africa (50 per cent).
So, with Harmony assuming full responsibility for the Hidden Valley mine, heres what we learned from the Hidden Valley mine “fact sheet”:
- Hidden Valley is located in the highly prospective Morobe province in Papua New Guinea
- It sits within the New Guinea Mobile Belt of Papua New Guinea which is one of the world’s pre-eminent geological terrains for porphyry copper-gold and epithermal gold mineralisation
- It is an open pit gold and silver mine, consisting of Hidden Valley, Kaveroi and Hamata
- Gold and silver doré produced at Hidden Valley is transported to Perth Mint in Australia, where it is refined
- Construction of the mine began in 2007. The first gold was poured in 2009, while commercial production commenced in September 2010
- In the last financial year, ending 30 June 2016, 145,132 ounces of gold was produced at Hidden Valley
- Tailings from the processing plant are treated and stored in a purpose built engineered tailings storage facility. This is the first of its kind in PNG.
- Around 40 percent of Hidden Valley’s process plant water needs are met by recycling treated surface water are met from a purpose built tailings storage facility – this reduces the amount of water required from local raw water sources
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Zimbabwe targets £8.8bn mining industry by 2023
Zimbabwe’s government plans to fast-track exploration, evaluation and digitalisation of selected reserved mining areas under the Ministry of Mines and Mining Development as part of wider measures to achieve a £8.8 billion mining industry by 2023, according to a senior government minister.
Information Minister Monica Mutsvangwa said other plans include stopping the issuance of special grants in the reserved areas under the Ministry of Mines and Mining Development until the exploration and evaluation is complete and a robust value addition program for diamonds is implemented.
Mutsvangwa was speaking at a post-cabinet media briefing on December 15.
She adds that the issuance and renewal of special grants for energy should also be based on the financial and technical capacity to value add all types of coal, as well as for ideal exploration of Coal Bed Methane.
For renewal of special grants, consideration should take into account the period the Special Grant has been held as well as plans with milestones for value addition of the special grant, Mutsvangwa says. She adds that the Zimbabwean government expects gold to drive the mining sector in order to achieve the ambitious target, with the precious metal expected to contribute approximately £2.96 billion to the overall target.
Mining is one of Zimbabwe’s major contributors to its economy, alongside agriculture, which is the mainstay. The mining sector accounted for more than 60 percent of the country’s foreign currency receipts in 2019, and contributed around 16 percent to national Gross Domestic Product, the Chamber of Mines says.
The country’s mining industry is focused on a diverse range of small to medium mining operations. The most important minerals produced in Zimbabwe include gold, asbestos, chromite, coal and base metals.
Zimbabwe expects its economy to expand by 7.4 percent in 2021 from a projected contraction of 4.5 percent this year, due to the effects of drought and the COVID-19 global pandemic.
When presenting the 2021 National Budget in November this year, Finance and Economic Development Minister, Professor Mthuli Ncube, said that the mining sector is projected to rebound by 11 percent next year after surviving a COVID-19 induced shock that saw the sector contract by 4.7 percent in 2020. In September, mining bans in national parks were introduced, according to news agencies.
He added that the National Budget would allocate £1 billion towards the operations of the ministry for planning, promotion and exploration, data capturing, and automation, among other key mining processes.
Other factors necessary for the achievement of the £8.8 billion target include a stable macroeconomic environment, policy consistency, and availability of long-term capital to fund mining projects along the entire mineral value chain, the minister said.
Stopping "illicit financial flows" from gold smuggling is another key issue to address, according to media reports.