Harmony Gold May Sell Bonds to Fund $3 Billion Project in Papua New Guinea

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Harmony Gold Mining Ltd., Africa’s third-largest producer, may sell bonds to fund its share of the planned $3 billion Wafi-Golpu project in Papua New Guinea. The company may use a mix of bonds, bank debt and cash to fund its 50 percent share of the project in Morobe province, Marian van der Walt, a spokeswoman for Johannesburg-based Harmony, said in an e-mailed response to questions from Bloomberg.

Newcrest Mining Ltd. (NCM), Australia’s biggest gold producer, is its partner in the venture. Mining companies are selling more bonds to take advantage of declining financing costs and record prices for minerals. Fortescue Metals Group Ltd., Australia’s third-biggest iron ore producer, was the seventh-biggest issuer of high-yield bonds in the U.S. last year, according to data compiled by Bloomberg. “A bond issue would probably be quite attractive to investors and the company in the current environment,” Warren Edney, analyst at Royal Bank of Scotland Plc, said by phone from Melbourne...