RTZ to raise dollars 107m from Papua stake
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.RTZ, the mining group, plans to raise dollars 107.7m by selling a large stake in one of the world's biggest undeveloped gold prospects, the Lihir project in Papua New Guinea, writes Russell Hotten.
The company is selling 19.99 per cent to Venezuelan Goldfields, in Canada, and 16 per cent to RTZ's partner in Lihir, Niugini Mining. The Papua New Guinea government holds a 30 per cent stake.
Lihir is considered the largest undeveloped gold prospect outside South Africa, with mineable reserves of 13.7 million ounces.
However, this is well below the 42 million ounces talked of when the project was started in the 1980s. RTZ, which retains 20.01 per cent in Lihir, said it had wanted to scale down its interest for more than a year.
But RTZ will continue to manage Lihir on behalf of the joint venture participants through a wholly owned project management subsidiary.
The company is expected to use the cash to reduce debt following the pounds 800m cash purchase of two mining operations in the US earlier this year.
The project has proved technically difficult because the Lihir site is near a volcano. However, mining is expected to begin in 1994.
The venture plans to process 2.8 million tonnes of ore a year, producing an average 620,000 ounces of gold annually over the first 12 years.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments