Tolu Minerals Ltd (ASX:TOK) has made progress on several fronts – including gold production, road optimisation and hydropower development – at the Tolukuma mine project in Papua New Guinea as it prepares for operational expansion in 2025.
Plant nearing completion
Tolu has completed construction of its new gravity processing plant, built by Appropriate Process Technologies (APT), with cold commissioning finalised in December 2024.
The plant will undergo operational testing with low-grade ore to ensure performance specifications are met before transitioning to full production upon final regulatory approval.
The company confirms that ore stockpiles are ready for processing during commissioning.
Securing long-term accessibility
The company has taken a new approach to access, which has helped it turn a corner on the unfavourable weather conditions and landslips encountered during the construction phase.
Following critical analysis and stakeholder engagement, the company adopted a new route prioritising ridge-line paths over mountain-side tracks.
This redesigned route reduces risks associated with steep slopes and water crossings while enhancing safety and long-term operational efficiency.
Although the road completion timeline has been extended to mid-2025, the redesign ensures greater reliability and confidence in the construction schedule in the long term.
Tolu’s contractor Tunnel Engineering has expanded its equipment fleet and implemented 24-hour operations to mitigate delays.
Contract negotiations between Tolu and Tunnel Engineering are underway to reflect the revised scope.
Hydropower to lower costs
Tolu is advancing its strategy to refurbish the hydroelectric power infrastructure at the Tolukuma site.
Partnering with a leading Independent Power Producer (IPP), the company is exploring a Special Purpose Vehicle (SPV) model to develop, own and operate the power station under a long-term power purchase agreement.
The project also aims to restore power to the local community. A feasibility study is in progress with commercial proposals expected shortly.