Harmony and Newcrest are 50:50 partners in the Wafi-Golpu Joint Venture. The revised prefeasibility study covers only Stage 1, which is now being advanced to a feasibility study. Work is ongoing to optimize Stage 2. Both the feasibility study for Stage 1 and a prefeasibility study for Stage 2 are scheduled for completion by the end of 2015.

Mining of Golpu Stage 1 is planned as two sequential block caves. Block Cave 1 (BC1) is situated approximately 425 m below surface and will extract 12 million mt of ore over a five-year period. Block Cave 2 (BC2) is situated approximately 1,050 m below surface and will extract 134 million mt of ore over a 23-year period.

The proposed startup production rate for Block Cave 1 (BC1) is 3 million mt/y. Block Cave 2 (BC2) would follow and would be mined at a peak production rate of 6 million mt/y. Ore grades across both of the block caves average 1.02 g/mt gold and 1.6% copper.

First production from BC1 is forecast for 2020. BC2 is currently scheduled to reach steady state production of 6 million mt/y by 2024. Annual metal production is expected to peak at 320,000 oz of gold and 150,000 mt of copper in concentrates in 2025.

Stage 1 project development capital is estimated at $2.3 billion. The all-in sustaining cost of gold sold is estimated at negative $1,685/oz net of copper credits.

The Golpu deposit is located 65 km west of the port city of Lae in eastern Papua New Guinea. The Papua New Guinea government has a right to acquire up to a 30% interest in the project at any time up to the date of granting the mining lease at a price equal to the sunk costs at the date of acquisition.