PERTH (miningweekly.com) - Gold miner Allied Gold has moved to allay fears that its Simberi mining lincence was being threatened.

In a statement to the ASX, Allied noted that following recent speculation in the Papua New Guinea (PNG) media, and comments by some provincial and island representatives about the gold mine, the company had contacted the Mineral Resources Authority and Prime Minister Peter O’Neill’s office to raise concerns regarding the speculation.

The company said it had been assured by the Prime Minister’s office that the rule of law and policy in relation to mining licence tenure remained in force.

“The Mineral Resources Authority has also acted expeditiously and responsibly in confirming in writing that both the mining and exploration licences were legally in good standing and that no actions relating to the mining or exploration areas of the company were pending,” Allied said.

The Mineral Resources Authority independently monitors all mining companies’ obligations in relation to operating and exploration tenements in PNG.

Allied noted that since the inception of the Simberi mining operations, the company has been working closely with the authority and other respective government departments to ensure regulatory compliance and would continue to do so in the future.

The company also said it was continuing to work with landowners, as well as other interested parties to deliver ongoing benefits to the local and surrounding communities.

The Simberi project produced some 250 000 oz of gold and employs over 600 people. Allied was currently increasing its production to some 100 000 oz/y by expanding the operation to a 3.5-million-ton-a-year plant, earmarked for completion in the third quarter of this year.
 

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