Shah Alam, 18 January 2007 – UMW Niugini Limited, a wholly-owned subsidiary of UMW Corporation Sdn Bhd based in Papua New Guinea (PNG) recently signed two major mining contracts with Morobe Consolidated Goldfields Limited, a company based in Papua New Guinea and wholly-owned by Harmony Gold Mining Company Limited. The contracts, worth approximately USD136 million, were signed on 22nd November 2006 by Mr Peter Leece, General Manager, UMW Niugini Limited on behalf of UMW while Mr Johannes van Heerden, the Chief Financial Officer, Harmony Gold Australia, signed for Morobe Consolidated Goldfields Limited.
The first contract, valued at USD35.1 million is for the supply of 37 units of Komatsu Mining Equipment and 8 units of Atlas Copco Blasthole Drills for the Hidden Valley Gold project, which is located on the main mountain range of PNG, approximately 280 km north of the capital, Port Moresby. The equipment will be supplied in five fleets, the first to be delivered in March 2007 and the last, in March 2008. The contract also provides for an option for additional 10 units of Komatsu Mining Equipment with a value of approximately USD 8.5 million for 2008 delivery.
The second contract is for the maintenance of the mining and construction equipment for a 10-year period with an estimated annual value of USD10 million. This will cover maintenance and repairs, including labour, spare parts and logistics.
Says Mr Chew Chee Loon, Executive Director, Heavy Equipment Group, UMW Corporation Sdn Bhd, “Harmony Gold Mining Company Limited, a public listed company based in South Africa is the fifth largest gold producer in the world with operations in South Africa, Australia and Papua New Guinea. It acquired Morobe Consolidated Goldfields Limited in 2004.” He added, “The Hidden Valley project is a major investment for Harmony Gold in PNG. The mine development and construction has commenced operations and will be completed by end of fourth quarter of 2008. The mine will produce approximately 285 000 ounces of gold annually. The company is a major employer in the Morobe Province.”