Clouds over Port Moresby today

The cloud formations over Port Moresby this morning were absolutely surreal
.My two sons had to to be patient as dad went trigger-happy with his camera!
The pictures were taken between Hohola and Waigani.

Frieda River study due in December

By MALUM NALU

A feasibility study on the Frieda River project on the border of East and West Sepik provinces, one of the largest undeveloped copper and gold deposits in the Asia-Pacific region, is due to be finalised in December 2012, The National reports.

This study was to have been delivered in January 2012, however, joint venture partners Xstrata Copper and Highlands Pacific made the decision to delay the finalisation while they assessed new power supply options and other configuration alternatives that became available late in the study timeframe.

Located approximately 200km from the northern coastline and 70km from the navigable Sepik River, the project is managed by the global copper producer, Xstrata Copper, and owned in a joint venture between Xstrata Frieda River Ltd (81.82%) and Highlands Pacific Ltd (18.18%).

“The feasibility study is now due to be finalised in December 2012,” Frieda River project general manager Paul Gow said in its sustainability report for 2011, which was distributed at last week’s mining and petroleum workshop for PNG media.

“Onsite activities have increased significantly following completion of the 2011 drilling and site investigation campaigns for the feasibility programme and this is reflected in a reduced number of sustainable development targets for 2012.

“However, with exploration, building and maintenance, continued study activities, land ownership determination and community affairs programmes continuing, 2012 will be yet another busy and challenging year for the Frieda River project.”

The PNG Chamber of Mines and Petroleum says in its latest industry overview that Frieda was one of three major world-class potential mining developments, the others being Wafi-Golpu in Morobe, and Yandera in Madang.

According to the Frieda River website, this extension would allow time to investigate potential development options that had become available late in the study timeframe.

Nautilus: Solwara 1 plan poses ‘less danger’

By MALUM NALU

Nautilus Minerals PNG country manager Mel Togolo says the company’s first project at Solwara 1, in the Bismarck Sea of PNG, will have minimal impact on the environment, The National reports.

 He said it was now “all systems go” with Nautilus having acquired all of its required permits including environmental permit in 2009,  mining lease granted in January 2011 for a deposit covering 59 square kilometres, and production set to begin next year.

Togolo...all systems go with Nautilus

 Togolo told a mining and petroleum workshop for PNG media last Friday that Nautilus had a “very strong story” on environmental and social matters at Solwara 1, where it would be mining for gold and copper,

 “Firstly, you need to recognise that at Solwara 1, the natural environment at depth is naturally turbid because we have black smokers emitting plumes into the water,” he said.

Location of Solwara 1 project, located in the Bismarck Sea at a depth of 1,600m.-Picture courtesy of NAUTILUS

“A few kilometres away we have an active sub-sea volcano which is putting large quantities of plumes into the water column.

 “Our operations will therefore have minimal impact on this natural environment.

 “We’re not dealing with pristine clear waters here.

 “You also need to note that this is very high grade material.

 “That high grade also means that we can be quite surgical in the way we develop these deposits, so that the environmental impacts are minimal.

 “At our first project, at Solwara 1, we will be mining a total surface area of approximately 0.11 square kilometres. 

 Togolo said land-based mines, working at lower grades, typically had to move large amounts of material to make the economics work.

 “These deposits sit essentially exposed on the sea floor,” he said,

 “There is no stripping and therefore no waste.

 “We will not be processing any of the material at the site, so there are no tailings.

 “We have designed our processes so all of the impacts are close to the seafloor.

 “We have no emissions in the top level of the water column which harbours most of the fish life.

 “We operate 30km from land, so we have no direct landowner interests.

 “And we are working constantly with local communities and the scientific community to ensure that we are doing this in a very responsible way.

 “After all, we are building an operation that we expect will be producing for 20 years or more.”

Ok Tedi Mining Ltd plans to extend mine life

By MALUM NALU

Ok Tedi Mining Ltd (OTML) – one of PNG’s biggest revenue earners - is in the process of undertaking a feasibility study to extend mine life as an alternative to closure, The National reports.

This was confirmed by OTML general manager - government and external relations, Musje Werror, at a mining and petroleum workshop for PNG media at the Gateway Hotel in Port Moresby last Friday.

Werror…confirms mine life extension

 The study is expected to be completed by next month (June) with parliament to enact what is known as the 10^th Supplementary Agreement (10SA) in 2013 to extend mine life.

OTML is planning for an orderly closure of the current mine in 2013, however, management considers this to be an opportunity to extend mine life by another seven years from 2015 to 2022 by a combination of two underground mines and one open pit operation.

Any decision to extend the closure of Ok Tedi to 2022 requires the approval of the state and the informed consent of the communities that are impacted by the existence of the mine.

This message is now being disseminated to local communities from the community mine continuation agreement (CMCA) regions, state authorities as well as political leaders of the province.

OTML’s workforce and other stakeholders are also being kept informed of developments relating to possible extension of mine life.

Werror said the goal of mine life extension (MLE) was “to provide detailed information to the mine-affected communities so that they can make an informed decision to either support mine life extension or insist on its closure”.

OTML is now carrying out the massive task of MLE consultation and consent in nine CMCA regions, 156 villages, over 100,000 people and covering 800km of Western province.

The three-tier consultation structure involves villages, regions and delegates with external facilitators Tanorama, independent observers, and an independent reviewer.

OTML says on its website that mine life extension will produce an estimated 90 million tonnes of ore containing close to 700,000 tonnes of copper and 2.3 million ounces of gold over the extension period.

“The mine will be a lot smaller in size to the current operations,” it says,

“Ok Tedi’s current annual copper and gold production is 160,000 tonnes and 540,000 ounces gold respectively.

“The most significant impact will be the requirement for disposal of an estimated 280 million tonnes of waste rock and tailing from open cut mining and mill processing.

“Mine extension will generate K3 billion in state revenues (dividends, taxes, royalties).

“Other benefits include extended lease payments, a level of on-going compensation and tax credit infrastructure and maintenance of social services for the people of North Fly and the rest of Western province.

Additional dividends will also flow to PNG Sustainable Development Program Ltd.