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| Lingbao Gold Group Simberi Gold Project |
Lingbao Strengthens Global Gold Portfolio with St Barbara Stake
China’s Lingbao Gold Group announced a 50% acquisition of St Barbara Mining (SMBL) for A$370 million ($245.57 million). This move secures Lingbao a major role in the Lingbao Simberi Gold Project. Consequently, SMBL will hold an 80% interest in the Simberi gold project in Papua New Guinea. Meanwhile, a joint venture with Kumul Mineral ensures additional financing and local partnership.
De-Risking Simberi Expansion and Accelerating Production
The acquisition reduces financial risk for St Barbara while enabling a faster final investment decision (FID) for Simberi expansion. Lingbao contributes international gold mining expertise, including commercial-scale smelting operations. Therefore, the project benefits from both funding stability and operational know-how. Additionally, Kumul’s 20% stake further strengthens local support and regulatory compliance.
Outlook for Lingbao Simberi Gold Project
Completion of the transaction targets late Q3 FY2026, pending Chinese and PNG regulatory approvals and mining lease extension. Analysts expect the project’s low capital intensity and competitive operating cost to boost long-term gold output. As a result, Lingbao and St Barbara are positioned to maximize shareholder value and accelerate resource development in PNG and Canada.
ScrapInsight Commentary
The Lingbao acquisition significantly de-risks the Simberi expansion while securing funding for St Barbara’s Atlantic assets. Gold output growth is likely to lower operational costs, and the partnership signals stronger cross-border investment confidence in PNG’s mining sector.
