New copper-gold discovery near Ok Tedi

Highlands Pacific has confirmed the presence of a new copper-gold porphyry (variety of igneous rock known for its hardness and durability) in the Star Mountains, Western province, near the established infrastructure of the Ok Tedi copper gold mine, The National reports.

The final assays from its 14-hole diamond drilling programme at the Olgal prospect returned the highest copper and gold grades to date of 294 metres at 0.67% copper and 1.16 grams per tonne (g/t) gold from 320 metres.

This was part of a wider 596 metre intersection at 0.61% copper and 0.85g/t gold from 24 metres.

The company added the hole 14 mineralisation appeared to be hypogene porphyry copper‐gold, demonstrating that as well as the porphyry and skarn targets, stand-alone porphyry targets in the Tifalmin porphyry copper district could yield the more than 1% copper grades that it was seeking.

Highlands Pacific noted that of the 14 holes drilled at Olgal, 12 have encountered copper and gold mineralisation.

It added the programme had also increased its conceptual understanding of the area and the interplay between more than a dozen targets it plans to test.

The Star Mountain leases consist of Tifalmin (EL1392), Mt Scorpion (EL1781) and Nong River (EL1312).

Highlands Pacific holds a 100% interest in the first two while Nong River is subject to a joint venture agreement with Xstrata Copper where it has the ability to earn a 72% interest in the joint venture by producing a feasibility study by 2019.

While Highlands Pacific is currently sole funding the exploration programme, Xstrata also has the right to reclaim a 72% interest by paying three times the exploration expenditure incurred by Highlands at the time Highlands presents a prefeasibility study.

PRE confident in InterOil's Gulf LNG plan

By MALUM NALU

InterOil partner, Pacific Rubiales Energy (PRE) Corp, has expressed confidence in the Gulf LNG project, despite the PNG government serving notice last week that it intended to project agreement of Dec 23, 2009, The National reports.

It yesterday (Wednesday) provided a strategic and operational update relating to the results of the recent testing of the Triceratops-2 appraisal well in Gulf province, where the company holds a net 10% non-operated participating interest in the well drilling on petroleum prospective license (PPL).

PRE chief executive officer, Ronald Pantin, said he was excited about results announced earlier this year by InterOil on the Triceratops-2 well.

"This is a very exciting result and confirms our belief that the Triceratops structure and PPL-237, along with earlier discoveries by InterOil in the adjacent Elk/Antelope structure, indeed represents a world class gas and condensate trend and provides the company with the strategic opportunity for early stage large resource capture on the doorstep of the world's fastest growing primary energy markets,” he said.

“ Not only is the Triceratops structure in itself proving to be a new discovery of significant magnitude, but additional prospects and leads on the large PPL-237 block provide further potential resource upside."

InterOil earlier this month signed a binding agreement with PRE to explore and further appraise the Triceratops structure on PPL-237.

Under the agreement, PRE can earn a 10% net (12.9% gross) participating interest in PPL-237, including the Triceratops structure located within that license.

 The transaction contemplates staged initial cash payments totaling US$116 million, an additional carry of a portion of the costs of an agreed exploration work programme, and a final resource payment.

PRE’s gross participating interest is subject to the PNG government’s back-in rights provided for in relevant PNG legislation.

Department of Petroleum and Energy, however, accused InterOil of not complying with the Oil and Gas Act by entering into a binding farm-in agreement with PRE to take a 10% net equity interest at an estimated cost of US$345 million in PPL-237.

Secretary Rendle Rimua said that this arrangement did not include any equity interest transfer in the Elk/Antelope fields which were also partly in PPL-237.

“The 10% stake only relates to the Tricerotops 2 well and associated exploration activities,” he said.

“The Department of Petroleum and Energy is very concerned that Interoil has released information publicly on the transfer of the equity interest without approval from the Minister for Petroleum and Energy (William Duma).”

PNG government tells judges: Quit or be arrested

From: AAP

THE effective government of Papua New Guinea says it will arrest the three judges who ordered ousted prime minister Sir Michael Somare returned to power, unless they resign.

Deputy Prime Minister Belden Namah said at midday today that Chief Justice Sir Salamo Injia and justices Les Gavera-Nanu and Nicholas Kirriwom had less than 16 hours to tender their resignations.

Mr Namah's comments came as Sir Michael left Port Moresby for his former electorate of East Sepik, where he is officially expected to nominate for the June 23 national election.

"Enough is enough," Mr Namah said.

"As of yesterday, I gave (the judges) 24 hours to resign on the basis that they have compromised the judiciary at the very highest level.

"They will be arrested for sedition."

Three members of a five-man Supreme Court bench on Monday reaffirmed their December 12 decision that Sir Michael was the nation's constitutional prime minister.

The 76-year-old political veteran saw his latest nine-year term in the top job terminated on August 2 last year when 70 out of 109 MPs voted to form government behind Peter O'Neill.

Mr O'Neill said Monday's decision should not have been handed down after two members of the five-man bench - Deputy Chief Justice Gibbs Salika and Justice Bernard Sakora - abstained on ethical grounds.

"The reference that was sought in the Supreme Court was for advice to parliament, not a court order that has been given by Injia and others," he said.

"All in all, we firmly believe the Supreme Court has erred again.

"The two most senior judges who have spent many, many years on the bench, many years of experience ... they have indicated that of course there are issues, that the judiciary has been compromised."

Parliament had been expected to hold a special sitting on Wednesday to legislate around the court's decision.

However, only 33 of the 109 MPs turned up, fewer than the 55 needed to pass laws.

Mr O'Neill said he expected there would be enough MPs in Port Moresby to call a parliamentary session tomorrow.

 With election campaigning in full swing, many MPs have left the capital for their electorates.

Sir Michael, who yesterday was refused an audience with Governor-General Sir Michael Ogio, said the O'Neill government did not have the right to bring back parliament a week after it was dissolved ahead of the election.

"They have defied all the rules and they have breached the constitution," he told reporters.

"The parliament is prorogued. You cannot call a parliament any more."

AAP understands there is no constitutional block to the government calling a special sitting after parliament has been dissolved for the election.

Sir Michael also appealed to the Australian people to acknowledge the legitimacy of his government.

"We want the Australian public to know we believe they have been supporting the O'Neill regime," he said.

Sir Michael's choice of attorney-general, Sir Arnold Amet, used stronger language, telling the assembled press PNG had fallen under the rule of a dictatorial government.

"As of yesterday, they are now in dictatorial control of this nation. They have no legitimacy, no leg to stand on.

"There can be no two ways this can be read. We have the legitimate prime minister here."

Sir Arnold also made a public appeal for the police and armed forces to back Sir Michael.

The police and public service say they are sticking with the O'Neill government until after the election.

Police have refused to let anyone see the governor-general until an MP with the required numerical support asks to form a government after July 27.

Today's buai pekpek (betelnut shit) in Port Moresby

I felt like throwing up when I saw the disgusting pile of buai pekpek and other litter along Waigani Drive this morning. 
 This is a problem just as bad as politicians, corruption and crime in this country...and the solution lies in ourselves! 
Wake up PNG!

Uncollected buai pekpek and other garbage outside Mobil Service Station, Waigani

BSP Waigani looks clean, however, take a closer look!

The filthy mess outside BSP Waigani this morning. I'm sure the bank can divert some of its K356 million profit towards keeping the area outside its branches clean. However, the bottom line is that we Papua New Guineans don't take ownership of anything, which has contributed towards Port Moresby becoming the filthiest capital city in the world!

I felt like throwing up when I saw this disgusting pile of buai pekpek and other litter along bemobile bus stop, Waigani Drive, this morning. This is a problem just as bad as politicians, corruption and crime in this country...and the solution lies in ourselves! Wake up PNG!

Yuck!

Ok Tedi mine life talks stalled by government absence

By MALUM NALU

Ok Tedi mine life extension talks have been affacted by the absence of key government agencies and the Fly River provincial government (FRPG), The National reports.

External observer Dr Beno Boeha is particularly disappointed because Ok Tedi Mining Ltd (OTML) contributes millions of kina every year to national and Western province coffers.

Boeha…disappointed at absence of government at mine life talks

After attending the Middle Fly, Suki-Fly-Gogo and Kiwaba regional meetings over the last three weeks, Boeha was concerned about non-attendance of FRPG and certain central agencies of government like Attorney General, Treasury and Finance, Environment and Conservation, and National Planning and Monitoring.

“The government, as a shareholder with 36.6% shareholding in OTML must attend to contribute to the process of consultation with the communities affected by the mine,” he said yesterday (Tuesday).

“Financially, OTML’s contributions to the national and provincial government budget are enormous, as from 2000 to 2011 OTML paid K9.4 billion to national government and K1.3 billion to FRPG in dividends and taxes, a total of K10.7 billion.

“At the same time, the mine landowners were paid K574 million and other impacted communities received K833 million.

“OTML is a significant contributor to the economy of this country and the Western province and it is important for the government, as a shareholder, to participate in the consultation process.

“The concern is also shared by the regional leaders.”

This week, community consultation on mine life extension meetings will be held simultaneously with members of the Dudi region and lower Ok Tedi.

The purpose of the mine life extension (MLE) community consultation process, which began in 2009, is to enable community leaders from the nine regions to make an informed decision on whether the mine should extend beyond 2015 or close.