Lihir’s Output to Resume This Week After Land Dispute...

Lihir’s Output to Resume This Week After Land Dispute (Update1)
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By Rebecca Keenan

Jan. 27 (Bloomberg) -- Lihir Gold Ltd., the second-largest gold mining company on the Australian Stock Exchange, will reopen its mine in Papua New Guinea this week after it was closed following a dispute with landowners on Jan. 23.

“We’d certainly expect it to reopen in the next couple of days,” Joe Dowling, a spokesman for the Port Moresby-based company, said today by phone from Brisbane. The mine at Lihir Island was closed because of an “issue” with some local landowners, he said. He wouldn’t be more specific.

The mine produced 216,371 ounces of gold in the three months ended Sept. 30. Lihir said Oct. 28 that the mine may produce 700,000 ounces in 2008. Lihir is scheduled to report fourth quarter production tomorrow.

The company is spending $696 million to expand the mine to increase output to 1 million ounces, Chief Executive Officer Arthur Hood said on Dec. 2. He forecast a higher profit in the six months ended Dec. 31 because of expanded production.