Lihir Gold Limited (LGL) was incorporated in Papua New Guinea in June 1995. An initial public offering of shares was made in Australia and PNG in October that year to raise capital to build the Lihir Island gold mine and process plant in New Ireland province.

Lihir Island hosts one of the world’s largest gold deposits with 28.8 million ounces in reserves and 43 million ounces in resource. Construction of the Lihir Island process plant was completed in 1997, with the operation pouring its first gold that same year. 

Until October 2005 the company was managed by a subsidiary of Rio Tinto plc. At that time, the Rio Tinto management agreement was terminated and a new independent CEO was appointed. Under the leadership of CEO Arthur Hood, LGL established a new management team and has pursued a revised strategy aimed at using the cornerstone Lihir asset to develop a new and vibrant global gold company.

The first step in that process was a series of operational changes at Lihir Island aimed at lifting output and performance. The response was immediate, with record gold production achieved in 2006, 2007 and 2008. Since the first gold pour in 1997, more than seven million ounces of gold have been produced at Lihir Island.

In 2008, LGL completed a merger with Equigold NL, which operated a successful gold mine at Mt Rawdon in Queensland, producing approximately 100,000 ounces of gold per year. Equigold was also developing the Bonikro gold operation in Côte d’Ivoire, where the company had approximately 20,000 square kilometres of prime exploration acreage in the highly prospective Birimian Greenstone belt. With the financial strength provided by LGL, the Bonikro mine and process plant was completed and commenced production in October 2008.

Over the past four years, LGL has undergone a significant transformation, establishing its position as a dynamic and globally-competitive gold major. The company now has three operating mines in three countries, and is producing a total of more than 1 million ounces of gold a year.

In May 2010 LGL entered into a Merger Implementation Agreement with Newcrest Mining Limited, under which it is proposed that Newcrest will acquire all of LGL’s ordinary shares under a Scheme of Arrangement. LGL shareholders will receive one Newcrest share for every 8.43 LGL shares they own, plus A$0.225 cash per share, less any interim dividend declared or paid by LGL for the half year ending 30 June 2010. Click here for more information on the merger with Newcrest.

Key Developments

March 2009	~US$340 million raised via Institutional Placement and Share Purchase Plan
June 2008	Completion of merger with Equigold NL
February 2008	Board approves Million Ounce Plant Upgrade (MOPU) project
May 2007	A$1.2 billion raised for close out of hedge book and elimination of debt
March 2007	Completion of merger with Ballarat Goldfields NL
December 2006	Commissioning of 20MW expansion to geothermal power station. Board approves US$7.5 million in expenditure for formal feasibility study into increasing annual production to approximately one million ounces per annum.
September 2005	Rio Tinto management agreement ended. New independent CEO appointed
July 2005	Official opening of 30MW geothermal power station
June 2005	Board approves Flotation Circuit expansion
November 2003	US$151 million raised for key capital projects
July 2003	Maiden dividend paid
October 2001	Heat Recovery Plant commissioned
April 2000	Owner mining commenced
September 1999	One millionth ounce poured
May 1997	First gold pour
November 1995	Construction at Lihir started
October 1995	Initial public offering launched
June 1995	Integrated Benefits Package adopted
March 1995	Special Mining Lease granted
September 1983	Exploration commenced
August 1982	Gold mineralisation identified