K92 Mining (TSX: KNT) declared on Tuesday the temporary suspension of underground activities at its Kainantu gold mine in Papua New Guinea, following the tragic death of an employee earlier this month.
The fatal incident occurred on March 10, prompting the cessation of processing operations at Kainantu for three days. Subsequently, operations resumed utilizing existing stockpiles.
Preliminary investigations conducted by both the company and Papua New Guinea police have categorized the incident as “non-industrial” in nature.
On March 13, PNG authorities mandated a temporary halt to underground activities, pending the fulfillment of action orders related to an independent safety audit and the implementation of a collision avoidance system.
K92 Mining disclosed that work is underway to address these action orders, which were already in progress before their issuance, according to a company news release.
Citing the non-industrial nature of the incident and alleged procedural, determination, and jurisdictional breaches of the Mining (Safety) Act in issuing the action orders, the company lodged an appeal on March 14, anticipating prompt resolution.
This tragic incident marks another fatality at the Kainantu mine within the past year. In May and June of 2023, two separate vehicular accidents occurred in or near the mining area, resulting in the loss of two workers in each incident.
Originally acquired from Barrick Gold in 2014, the Kainantu project in PNG’s Eastern Highlands province has emerged as K92’s flagship operation. Presently, the mine is poised to enter its next phase of expansion, with aspirations to achieve Tier 1 status and an annual run rate of up to 470,000 ounces of gold equivalent.
Shares of K92 Mining experienced a 2.3% decline to C$6.20 at the opening of the Toronto market. The company maintains a market capitalization of C$1.45 billion ($1.1 billion).
