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Thursday, 16th February 2006 (4514 views)

South African gold miner Harmony is set to reduce exposure to its home market by pressing ahead with a new project in Papua New Guinea.

Fresh from selling its stake in rival Gold Fields, the company now says it will commence production at its Hidden Valley project as early as 2008.

It estimates that the new mine will produce 285,000 ounces of gold a year over the next decade, boosting offshore production to around 20 per cent of Harmony's total by 2009.

Talking to Mining Weekly, the company's Papua New Guinea CEO Graham Briggs said Harmony would have a project execution plan ready by May.

Preparations for production have already been made, with a 25-km access road now halfway through construction.

Harmony raised 2.47 billion rand last November when it dumped its remaining 5.4 per cent stake in Gold Fields.

It currently carries out 90 per cent of its work in South Africa and is the world's fourth biggest gold producer.

 

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