https://newsletter.en.creamermedia.com
Construction|Exploration|Export|Financial|flotation|generation|Gold|Power|PROJECT|Road|Power Generation|Power-generation
Construction|Exploration|Export|Financial|flotation|generation|Gold|Power|PROJECT|Road|Power Generation|Power-generation
construction|exploration|export|financial|flotation|generation|gold|power|project|road|power-generation|power-generation-industry-term

St Barbara’s Simberi expansion targets 220 000 oz/y

30th April 2025

By: Creamer Media Reporter

     

Font size: - +

Australia's St Barbara has confirmed strong economics for its Simberi expansion project in Papua New Guinea, following the completion of a prefeasibility level plant study and an updated life-of-mine plan (LOMP).

The study outlines an expanded operation capable of producing more than 220 000 oz/y of gold from the 2028 financial year, peaking following an initial ramp-up to 90 000 oz/y in 2027. Total gold output over the 13-year LOMP is forecast at 2.2-million ounces, based solely on proved and probable reserves.

All-in sustaining costs are projected to fall to between $1 200/oz and $1 300/oz from 2029 to 2036. These estimates now include the cost of a proposed enhanced royalty package for local landowners and communities.

Initial project capital is estimated at $235-million, with pre-expansion growth capital of between $40-million and $60-million to be invested between 2026 and 2027. This will fund early works, including a camp upgrade, road construction and a reverse osmosis plant.

“This is a robust opportunity to deliver value for St Barbara shareholders,” said MD and CEO Andrew Strelein. “Our current work shows a project with significantly higher production, a lower operating cost and a mine life extending to 13 years without including any exploration targets.”

Assuming a gold price of $2 500/oz, the project yields a post-tax net present value of $717-million and an internal rate of return of 62%, with payback expected in 3.6 years.

The expansion, designed by Pitch Black Group and supported by AMC Consultants and Paradocs Metallurgy, transitions Simberi from free-milling oxide ore to processing harder sulphide ore. This will require a flotation circuit to produce a gold concentrate and upgrades to the comminution circuit. Oxide ore will continue to be treated via the existing carbon-in-leach plant.

Capital costs also cover new power generation capacity and construction of a wharf to enable concentrate export. Operating costs are estimated at $58.6/t milled over the life-of-mine.

The company expects to make a final investment decision in the first half of the 2026 financial year, pending resolution of an ongoing tax assessment in Papua New Guinea.

 

Edited by Creamer Media Reporter

Comments

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 02 May 2025
Magazine round up | 02 May 2025
2nd May 2025

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.114 0.198s - 170pq - 2rq
Subscribe Now