PERTH – Australian miner St Barbara Limited has agreed to sell a 20% interest in its Simberi Gold Project in Papua New Guinea to state-owned Kumul Mineral Holdings Limited for A$100 million ($66 million), the companies said on Wednesday.
The binding deal follows a memorandum of understanding signed a year ago and supports the PNG government’s push for greater domestic ownership and benefit-sharing from resource projects.
Under the agreement, Kumul will enter an unincorporated joint venture, with St Barbara’s subsidiary Simberi Gold Company Limited retaining 80% and remaining as manager. St Barbara will also provide a non-recourse loan to Kumul to cover the acquisition cost and its share of future construction expenses, to be repaid from Kumul’s portion of gold revenue.
“Kumul’s participation aligns the interests of St Barbara and our key stakeholders,” said Managing Director and CEO Andrew Strelein, adding that the deal marks a key step ahead of a final investment decision for the Simberi expansion, targeted for the third quarter of fiscal 2026.
The transaction remains subject to regulatory approvals in PNG, including clearance from the Independent Consumer and Competition Commission and the National Executive Committee, as well as renewal of the Simberi mining lease.
Kumul, the state nominee for PNG’s stake in mineral projects, holds interests in several major mines including Ok Tedi and Porgera. The Simberi deal is part of its strategy to increase state participation in the resources sector.
The companies are also finalising a separate farm-in agreement for Kumul to earn up to 20% in the Tabar Islands exploration licenses.
St Barbara’s legal adviser on the transaction is Allens.
($1 = 1.52 Australian dollars)