By Penny Langford
St Barbara has agreed to sell its remaining interest in the New Simberi Gold Project and associated Tabar Islands exploration licences in Papua New Guinea to China’s Lingbao Gold Group for A$453 million, marking the Australian miner’s exit from operational ownership of the project.
The binding agreement comprises A$410 million for St Barbara’s remaining interest and a further A$43 million repayment for construction capital it funded for New Simberi between April 2026 and the signing of the agreement, according to St Barbara’s announcement.
The transaction is expected to complete in the March 2027 quarter, subject to regulatory and other customary approvals in Papua New Guinea and China.
Business News Today and other industry outlets reported that the deal will leave Lingbao as the dominant owner of the Simberi operation, while Papua New Guinea’s Kumul Mineral Holdings retains its 20% project interest.
Key terms of the Simberi transaction
| Item | Details |
|---|---|
| Buyer | Lingbao Gold Group |
| Assets | St Barbara’s remaining New Simberi interest and Tabar Islands exploration licences |
| Total consideration | A$453 million |
| Cash purchase price | A$410 million |
| Construction-capital repayment | A$43 million |
| Completion target | March 2027 quarter, subject to approvals |
| Royalty retained by St Barbara | 2.75% NSR on future New Simberi gold and silver production |
| Additional royalty | 1.5% NSR on future minerals production from Tabar Islands licences |
The agreement also requires Lingbao to fund St Barbara’s share of New Simberi capital requirements between signing and completion.
Gold processing infrastructure at a remote tropical Pacific operation.
St Barbara shifts from owner to royalty holder
St Barbara will retain economic exposure to the project through a 2.75% net smelter return royalty covering future gold and silver production from New Simberi. It will also retain a 1.5% NSR royalty on future minerals production from the Tabar Islands exploration licences.
The company has estimated that the royalties could generate approximately A$286 million over the life of the project, although the timing and value of those payments will depend on construction, production, operating performance, commodity prices and the final development schedule.
The arrangement changes St Barbara’s position from equity owner and funding participant to royalty holder. It also removes the company from direct operating and construction exposure in Papua New Guinea while preserving a potential long-term revenue stream.
In its announcement, St Barbara said the sale would strengthen its financial position and support a renewed focus on its Canadian assets. On completion, the company expects to hold approximately A$880 million in cash and to be debt-free.
The balance-sheet improvement gives St Barbara greater flexibility as it advances the 15-Mile Processing Hub and the Touquoy restart project in Nova Scotia. The company has also indicated that it may consider capital returns, including a special dividend or share buyback, subject to board decisions and completion of the transaction.
The sale follows a broader review of St Barbara’s portfolio and a strategy of reducing capital exposure to projects requiring substantial development funding.
Lingbao’s expansion on Simberi
The transaction builds on Lingbao’s earlier investment in the project.
In December 2025, Lingbao agreed to pay A$370 million for 50% of St Barbara Mining Pty Ltd, the subsidiary holding an 80% interest in the Simberi project and the Tabar Islands licences. The investment was completed in April 2026, with St Barbara receiving approximately A$389 million after adjustments.
Papua New Guinea’s Kumul Mineral Holdings separately agreed to acquire a 20% interest in the project for A$100 million. That interest was structured with funding support from the project’s other owners and was intended to be repaid from future project cash flows.
Before the latest sale, the effective ownership structure was broadly split between St Barbara and Lingbao through their interests in St Barbara Mining Pty Ltd, with Kumul holding the remaining 20% project interest.
The new agreement allows Lingbao to acquire St Barbara’s remaining position and consolidate control of the project. Kumul’s participation is expected to continue under the existing ownership structure.
For Lingbao, the purchase provides greater control over a gold operation it has already helped finance. It also gives the company direct exposure to the New Simberi expansion and to exploration ground across the Tabar Islands.
The deal is part of a wider pattern of Chinese mining companies seeking exposure to overseas gold and critical mineral assets, particularly where existing infrastructure, operating licences and expansion plans can reduce development risk.
New Simberi expansion remains central to the deal
Simberi is located on Simberi Island in New Ireland Province, in the Tabar Islands of Papua New Guinea. The operation includes an existing mine and processing infrastructure, with the New Simberi project focused on expanding and extending production.
The project’s development requires continued construction capital, commissioning work and operating execution. Lingbao’s agreement to fund St Barbara’s share of capital requirements through completion reduces the near-term funding burden on St Barbara and supports a clearer transition of control.
The project’s location also adds logistical complexity. Simberi is a remote island operation, requiring marine transport, power generation, fuel supply, workforce logistics and careful management of water and processing infrastructure.
Those factors can affect project schedules and operating costs even when the underlying resource and processing plan are well established. For Lingbao, greater ownership provides more control over those decisions but also increases its exposure to construction, permitting and operational risks.
The remote island setting adds logistics and infrastructure considerations to the expansion.
Papua New Guinea remains a significant gold jurisdiction
Papua New Guinea has long been an important gold-producing country in the Asia-Pacific region. Its mining sector includes large, long-life operations as well as projects that face complex permitting, infrastructure, community and security conditions.
The country’s gold assets are strategically important for both international miners and the government, which is seeking greater participation in mining value chains and a larger share of project benefits.
Kumul’s 20% interest in New Simberi reflects Papua New Guinea’s efforts to participate directly in major resource projects. The final economic outcome for the country will depend on production levels, royalties, taxes, employment, local procurement and the project’s broader contribution to the surrounding communities.
The transaction also leaves Lingbao responsible for managing relationships with national and provincial authorities, landholders and local communities as construction and expansion activities proceed.
For investors and operators, the Simberi deal illustrates the value of assessing ownership changes alongside the underlying project timetable. A change in control can alter funding capacity, procurement strategy and development priorities, but it does not remove the physical and regulatory challenges of operating in a remote jurisdiction.
Divestment reflects a broader portfolio reset
St Barbara’s decision to sell its remaining Simberi interest comes as gold producers reassess how to allocate capital across operating mines, development projects and balance-sheet priorities.
The company’s retained royalty provides some continued exposure to gold production without requiring it to contribute equity funding to the project after completion. That structure can be attractive when a company wants to preserve upside while reducing construction and operating obligations.
The A$453 million transaction also gives St Barbara a larger cash position at a time when gold prices have supported strong margins across much of the sector. However, the company’s future performance will depend on how effectively it deploys that capital across its Canadian portfolio and whether the 15-Mile Processing Hub and Touquoy restart progress as planned.
The deal therefore has two distinct implications for St Barbara: it monetizes a major overseas asset and creates financial flexibility, but it also shifts the company’s growth profile toward a smaller number of Canadian projects.
For Lingbao, the transaction is a step in the opposite direction. It increases exposure to a single Papua New Guinea gold operation and gives the company greater influence over the project’s development and long-term production.
Crushing and leaching infrastructure will remain central to the New Simberi expansion plan.
Approvals and execution are the next milestones
The transaction remains subject to required approvals before completion. Until closing, St Barbara and Lingbao will continue to operate under the existing ownership and funding arrangements, with Lingbao committed to funding St Barbara’s share of capital requirements during the interim period.
The key milestones for the market will be:
- Regulatory approval in Papua New Guinea and China.
- Completion of the ownership transfer.
- Continued construction and expansion progress at New Simberi.
- Capital requirements through commissioning.
- Production performance and recovery rates.
- The timing and scale of St Barbara’s retained royalty income.
- St Barbara’s capital-allocation decisions following completion.
The agreement gives Lingbao a clearer path to control of New Simberi while allowing St Barbara to exit direct project exposure with a substantial cash payment and continuing royalty rights.
For Papua New Guinea, the transaction brings a new controlling investor into an important gold project. For St Barbara, it completes a significant portfolio transition. For the wider gold sector, it is another example of capital moving toward assets with existing infrastructure, expansion potential and strategic relevance in established mining jurisdictions.
Sources: St Barbara announcement; Mining Weekly; St Barbara strategic agreement.
