Harmony Gold expects the Wafi Golpu deposit it owns with Newcrest Mining in Papua New Guinea will cost between $4 billion (R34bn) and $5bn to develop. “It’ll be a big mine,” chief executive Graham Briggs said yesterday. “It will go on for about 30 years.” He said Harmony would provide more detail on estimated copper and gold output from the project next month. Harmony, which already produces gold in Papua New Guinea from the Hidden Valley venture with Newcrest, might raise $1bn by selling forward copper from the Wafi Golpu mine and use the proceeds to fund the project, Briggs said last year. Harmony first estimated the cost of developing the mine would be $3bn.
The company, which mines more than 90 percent of its metal in South Africa, is expanding output in the country and ramping up production at its Papua New Guinea venture with Newcrest. Chief operating officer Tom Smith said Harmony’s Phakisa mine in the Free State would reach full production in the next two years. The operation will be one of the lowest cost producers when running at full capacity. Harmony stock rose 1.01 percent to R75.68 yesterday. – Bloomberg