Prime Minister Hon James Marape is very pleased with the performance of the K92 mine in Eastern Highland Province.
The PM said it was pleasing to note that K92 Mine’s 2021 performance was outstanding with a total of PGK67 million Corporate Tax expected to be paid to the State, and PGK85 million is estimated for this year 2022.
In addition, the mine has invested significant sum for its capital expenditure for its underground development and expansion, whilst continuing massive investments of K40-50 million is planned for 2022 exploration.
The mine continues to pay royalty to its stakeholders. The year 2021 saw PGK 12 million paid to the stakeholders and PGK3 million for production levy.
Details of the performances outlined by CEO John Lewins were as follows:-
Corporate Tax
§ 2021 Paid to date PGK48 million, with another PGK19 million due this quarter as final instalment for total of PGK67 million
§ 2022 Budget PGK85 million
Capital Expenditure
Actual 2021
§ Capital Expenditure PGK 60 million
§ Twin Decline Development PGK 47.5 million
§ Capitalised Development PGK45 million
Budget 2022
§ Capital Expenditure PGK200 million
§ Twin Decline Development PGK40 – 50 million
§ Capitalised Development PGK70 – 80 million
Exploration
§ 2021 Actual PGK38 million
§ 2022 Budget PGK40 – 50 million
Royalty Payments
§ 2021 Actual PGK12 million (+PGK3 million Production Levy)
§ 2022 Budget PGK15 million (+PGK3.8 million Production Levy)
Major Landowner company JV Contracts for Transport, Security, Camp & Ancillary Mobile Plant in 2021 was PGK50 Million (PGK135 million over last three years).
Expansion and production
The original mine had a capacity of 150,000 tpa and when K92 refurbished the plant we increased the capacity to 200,000 tpa in 2016.
§ 2021 Stage 2 Expansion to 400,000 tpa Commissioned (Capital Cost PGK100 million) Production – 120,000 ozs AuEq per annum
§ 2022 Stage 2A Expansion to 500,000 – production 150,000 ozs AuEq per annum
§ 2022 – 2024 Stage 3 Expansion to 1,200,000 tonnes per annum – production 350,000 ozs AuEq per annum. Capital Cost +PGK1 Billion spent over 2022/23/24 which will include a brand-new Process Plant
Work currently underway includes – Twin Incline (5 metre x 5.5 metre and 6 metre x 6.5 metre) capable of producing 3 MTPA; New Workshop at 800 portal; Expansion of Camp to double capacity; Expansion of Warehouse and Store; Raising of Tailings Dam; Expansion of Mining Fleet;
Production in gold equivalent ounces since K92 re-commenced mining at Kainantu are as follows: – 2018 – 47,000ozs; 2019 – 87,000 ozs; 2020 – 99,000 ozs; 2021 – 104,000 ozs; and Budget 2022 is expected to be 115-140,000 ozs