Since its formation in Papua New Guinea and raising of A$2 million in
1980, Niugini Mining Limited (NML) has grown to a company
capitalised on the Australian Stock Exchange at about A$350 million. In
1995 the company produced some 237 000 ounces of gold, 700 000
ounces of silver and nearly 5000 tonnes of copper from its operations at
Red Dome, in North Queensland and San Cristobal in The Atacama
Desert of Northern Chile. This production contrasts with Niugini
Mining's first mining venture at Mt Victor in the Eastern Highlands of
PNG which yielded 20 000 ounces of gold and 11 600 of silver between
1987 and 1989. Following the formation of an exploration joint venture in 1982 with
Kennecott Explorations (Australia) Ltd, now a subsidiary of RTZ, Niugini
Mining's early recognition of the gold potential of volcanic rocks at plate
margins led to discovery of the Lihir deposit in July 1982. This deposit containing about 42 million ounces of gold in resources, is
one of the largest undeveloped gold deposits in the world. Following
raising of equity funds through the float of Lihir Gold Ltd and debt
finance in 1995, construction of the mine at a cost of US$673 million is
now underway with first full-scale production at approximately 600 000
ounces of gold per year expected in early- 1998.