A CHINESE company has spent more than $AUD1 billion on the purchase of mines and port facilities across three islands in Papua New Guinea.
Lingbao Gold – a state-backed resources group listed on the Hong Kong stock exchange agreed to pay ASX-listed St Barbara $AUD453 million for its stake in the mine on Simberi Island in New Ireland Province.
The Australian Financial Review reports that by paying at least $AUD842 million for an 80 per cent stake in Simberi, Lingbao is buying in at a higher valuation than PNG’s state-owned Kumul earlier this year.
Kumul acquired a 20 per cent stake in the asset for $100 million.
Lingbao Gold is backed by a municipal council in the Henan province.
It’s understood that another Chinese company – CMOC – had attempted to partner ASX-listed Bougainville Copper on a potential restart of Panguna mine on Bougainville.
But Bougainville has signaled its intention to engage Lloyds Metals of India in a controversial deal which included medical treatment for the wife of President Ishmale Toroama.
