PNG Government-Backed Kumul Takes 20pc Stake in Simberi
The Papua New Guinea Government has welcomed a major step toward increased national participation in the mining sector following Kumul Mineral Holdings Limited’s acquisition of a 20 per cent stake in the Simberi Gold Project.
Kumul entered into a binding agreement with Australian miner St Barbara Limited to acquire the stake for A$100 million, formalising a partnership first outlined in a memorandum of understanding signed on December 9, 2024.
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| PNG Government-Backed Kumul Takes 20pc Stake in Simberi |
Under the agreement, St Barbara subsidiary Simberi Gold Company Limited will retain an 80 per cent interest in the project and continue as manager and operator of the Simberi Joint Venture.
The Government said the transaction aligns with its policy objective of increasing state equity in major resource projects and ensuring broader and more equitable sharing of benefits from Papua New Guinea’s natural resources.
St Barbara said the partnership with Kumul, the State’s nominee in the mining sector, would help align the company’s interests with those of the Government, landowners and other key stakeholders.
Managing Director and Chief Executive Officer Andrew Strelein said the company shared the Government’s commitment to ensuring that the value of PNG’s mineral resources is shared for the benefit of its people.
He said Kumul’s involvement would also support the long-term development of the Simberi Expansion Project, which is being progressed in partnership with Lingbao Gold Group.
In addition to the Simberi transaction, St Barbara and Kumul are finalising documentation that would allow Kumul to earn up to a 20 per cent interest in the Tabar Islands Exploration Licences.
St Barbara described the agreement as a significant milestone as it moves toward a Final Investment Decision on the Simberi Expansion Project, targeted for the third quarter of the 2026 financial year.
Earlier this month, the company announced that Lingbao Gold Group would acquire a 50 per cent strategic interest in the Simberi Expansion, providing full funding support for the project.
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