Australia-based Allied Gold Mining plc said Wednesday it is not concerned about possible changes to legislation in Papua New Guinea regarding resource extraction.
Allied Gold has been advised by the PNG Chamber of Mines that any potential changes to PNG's resources and minerals legislation would be in respect of new rather than existing projects, the company said in a statement.
Allied Gold also believes its position with regard to licences and tenure is no different to other major gold and resource companies in PNG including Newcrest, Xstrata, Oil Search or Chevron. The company remains committed to the ongoing development of the Simberi gold project.
The rights of landowners in PNG have always been well respected by Allied Gold's Simberi operation and are recognized through the distribution of royalty payments.
Allied Gold said it expects to meet its target for gold production at Simberi of between 16,000 and 18,000 ounces for the current quarter.
At the company's newly commissioned Gold Ridge mine in the Solomon Islands, ramp up is continuing. Since July 1, Gold Ridge has produced in excess of 11,000 ounces and the Allied Gold expects to meet its guidance of 15,000 to 20,000 ounces for the September quarter.