Name of the Project
Simberi gold mine expansion project.

Location
Northernmost island in the Tabar group of islands in the province of New Ireland, in Papua New Guinea (PNG).

Project Owner/s
Australia-based gold mining company St Barbara Limited.

Project Description
The project aims to enlarge the current mining and processing facilities to allow for the processing of fresh sulphide ore and the extension of the life-of-mine to 13 years.

The mining rate is set to increase from the current 10-million to 12-million tonnes a year to about 20-million tonnes a year.

Operations will shift from processing easily recoverable oxidised ore, which yields gold doré through the conventional carbon-in-leach (CIL) and electrowinning process, to handling fresh ore. This will require enhancements to the comminution circuit to handle the harder material, and the addition of a flotation circuit to produce a gold-rich concentrate. The flotation tailings, which contain nonsulphide material, will continue to be processed through the existing CIL circuit to extract any remaining gold.

Total gold production is estimated at 2.2-million ounces from the 2026 to 2028 financial years, based on proved and probable reserves.

The expansion includes the development of extra power generation facilities and the building of a new wharf capable of handling larger vessels to transport the gold concentrate to external buyers.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Applying a discount rate of 8%, the project has a net present value of $717-million and an internal rate of return of 63%, with a payback of 3.6 years.

Capital Expenditure
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.

Planned Start/End Date
A final investment decision is expected in the second quarter of the 2026 financial year or early in the third quarter of the 2026 financial year.

Latest Developments
St Barbara has announced a A$370-million investment from China’s Lingbao Gold Group to advance the Simberi expansion project. Lingbao will acquire a 50% interest in St Barbara Mining (SBML) through a cash subscription, with the funds transferred to St Barbara through intercompany loan settlements.

The transaction follows a separate deal in which PNG’s Kumul Mineral Holdings will buy 20% of the Simberi project for A$100-million, financed through a limited-recourse loan from SBML. After completion, SBML – and, therefore, St Barbara and Lingbao – will retain an 80% interest.

Once both agreements have closed, St Barbara and Lingbao will each own 50% of SBML. 

Completion is expected late in the third quarter of the 2026 financial year, subject to Chinese and PNG regulatory approvals, renewal of the Simberi mining lease and a positive final investment decision.

St Barbara has said the terms imply an A$800-million enterprise value for Simberi, a 31% premium to its current market capitalisation, noting that the uplift is even higher when factoring in full ownership of its Nova Scotia projects and its strong cash, bullion and receivables position.

Lingbao, a top-ten Chinese gold producer with integrated mining and smelting operations, has been evaluating the opportunity since expressing interest in 2024. St Barbara MD and CEO Andrew Strelein has said the investments from Lingbao and Kumul will accelerate the Simberi expansion and materially derisk funding. St Barbara is now fully funded for its share of Simberi’s development costs and for advancing its Canadian Atlantic assets, including the Touquoy restart and the 15 Mile processing hub.

Lingbao chairperson Wang Pinran has said the group sees strong potential in the asset and the partnership, describing Simberi as a high-quality project, supported by 2.5-million ounces of reserves and 5.8-million ounces of resources. Pinran has added that Kumul’s involvement underscores PNG’s support for international investment and signals that the country is an attractive destination for global miners.

Key Contracts, Suppliers and Consultants
Pitch Black Group (process plant study); and AMC Consultants (mine planning work supporting the life-of-mine plan and the preparation of the ore reserves).

Contact Details for Project Information
St Barbara Limited (Simberi operations), tel +675 76407031 or email info@stbarbara.com.au.