Harmony Gold to delay Eva Copper project as seeks new permits

HARMONY Gold said it expected “some” downturn at its Eva copper project after saying earlier this week that license approval would take “longer than expected”.

Eva Copper project

“An evaluation of the project’s permit modification and change requests determined that the project requires both minor and major permit modifications,” Harmony spokesman Jared Coetzer said Monday.

“Key changes relate to proposed mixed flow solutions, water supply and on-site water management solutions, increased treatment rates and the future inclusion of wind energy,” he said. This will delay an update on the feasibility study for the project.

“Although this has been somewhat challenging for Eva, we have organized our funding so that the intensity is manageable,” he said. The study should be completed by the end of this year.

Harmony said in a first-quarter production update that net debt fell to $117 million.

“As a result, our balance sheet is very healthy and our cash generation is strong, which puts our projects in a strong position,” Kozer said. Harmony has committed to spending approximately $65 million on capital projects this fiscal year, which ends June 30, 2024. billion rand.

Operating free cash totaled $3.2 billion in the first quarter.

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The South African gold miner continues to produce high-grade mines at its Mponeng and Moab Khotsong mines, while its Hidden Valley mine in Papua New Guinea (PNG) is also performing well. The group’s average grade rose 18% year-on-year to 6.29 grams per tonne, driving gold production up 17% to 425,130 ounces (13,223 kilograms).

Regarding the prospects of another project – Mponeng Deeps – Harmony CEO Peter Steenkamp told Miningmx in an interview today that the prospects are bright. “It’s not done yet,” he said of plans to bring the project to Harmony’s board of directors.

“But it’s an ore body you want to develop. It’s a great ore body that we bought from AngloGold,” he said. Harmony acquired Mponeng from AngloGold Ashanti in 2020 for about $300 million and another asset, Mine Waste Solutions.

The Eva project is due to be completed in December 2022 with an upfront payment of approximately $170 million, funded through a revolving credit facility.

According to a study by former owner Copper Mountain, the Eva will require $597 million in development funding before entering production. Harmony said at the time that commissioning of the project was expected to take two to three years following review and optimization studies.

The Eva project has an expected mine life of 15 years and will produce 100 million pounds of copper and 14,000 ounces of gold per year.

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