MMJV: Golpu feasibility study to start in July

By MALUM NALU
 

Morobe Mining Joint Ventures (MMJV) anticipates a feasibility study on the giant Golpu copper-gold project in Morobe province gold project to begin in the July quarter of this year, according to general manager-sustainability and external relations David Wissink.

He said this yesterday when asked to comment on what major plans the company has for this year.

“With Wafi- Golpu the focus is on discussions with stakeholders on the Golpu pre-feasibility study (PFS) which was finished last year,” Wissink told The National.

“After these consultations take place and a final nod from the joint venture partners (Newcrest and Harmony), we anticipate the project team being in a position to start the feasibility study in the July quarter of this year.”

Wissink said the plan called for 24 months for the feasibility study for just Golpu copper and gold, as Wafi was a separate ore body (gold cap) which was being studied at present.

Harmony and Newcrest last October announced a significant upgrade to the ore reserve estimate for the Golpu copper-gold deposit, following the completion of a technical PFS. 

Prime Minister Peter O’Neill (second from right)  listens to a geologist explains the reserves for the Wafi-Golpu project during a sire visit last October.-Picture courtesy of MMJV

The PFS supports an updated ore reserve estimate containing 12.4 million ounces of gold and 5.4 million tonnes of copper.

The study also confirms Golpu as a world‐class deposit with an expected mine life of more than 25 years.

Wissink said this year MMJV planned to create value for its shareholders and stakeholders.

Shareholders are Newcrest and Harmony, while stakeholders are landowners, Bulolo local level governments, Bulolo and Huon Gulf districts, and Morobe province. 

“We’ll do that by safely, and in an environmentally-sound manner, improving production and plant throughput at Hidden Valley, progressing Golpu to feasibility stage and continuing our exploration programme focusing on some exciting prospects in Huon Gulf and Bulolo districts.

“Another core part of the MMJV business is community engagement and on this side of the business,  we have extensive consultation programmes happening with the Wafi – Golpu project, an MOA (memorandum of agreement)  review for Hidden Valley at some point in the first half of the year, and of course the continuation of our community and regional development programs including the Watut River footbridge projects, community malaria programme in partnership with the Oil Search Health Foundation, education programmes and agriculture focusing on cocoa, coffee and fresh produce.”

Regarding, MMJV’s other project at Hidden Valley, Wissink said: “Hidden Valley is still ramping up production as it takes time to get all the moving parts of a mine (including people) working as efficiently as possible. 

“The environmental side of the operation is doing fine with the tailings storage facility performing as planned.”

Fly Warrior arrives in Western tomorrow

By MALUM NALU

The last of three ships procured by Ok Tedi Development Foundation (OTDF) on behalf of the Ok Tedi river communities, mv Fly Warrior, will be welcomed into Western province at the weekend.

 mv Fly Warrior arrives at Sturt Island along the Fly River tomorrow and further upstream at Obo on Sunday.

Provincial leaders including Governor Ati Wobiro, community leaders, and management of OTDF, Ok Tedi Mining Ltd, and PNG Sustainable Development Program are expected to be at the welcoming at Sturt Island and Obo.

mv Fly Warrior joins its two sister ships,  mv Fly Hope and mv Fly Explorer,  in generating long-term development benefits for the 156 villages that currently benefit from the Ok Tedi Community Mine Continuation Agreement (CMCA).

She was launched from the Sarawak Slipways yard in Malaysia on September 22, 2012.

The mv Fly Warrior before it was launched from the Saraway Slipways in Malaysia.-Picture courtesy of OTDF

The 65m bulk cargo/fuel carrier will be on dry hire to OTML and will be generating a minimum 8% return per annum on a capital investment of US$8 million.

The vessel was designed by Shiptech in Singapore then constructed by Sarawak Slipways and will be operated by V Ships, the world’s largest shipping fleet manager.

 mv Fly Warrior will primarily service OTML’s operational requirements (carrying up to 72 containers and or 1.2 million litres of fuel) out of Port Moresby but has the capacity to call into Australia when required.

Xstrata ups Papua New Guinea mine cost estimate to US$5.6 billion

Reuters

MELBOURNE: Xstrata has raised its capital spending estimate for the undeveloped Frieda River copper mine in Papua New Guinea by $300 million to US$5.6 billion, as costs to develop new mines continue to escalate.
Xstrata Copper delivered a feasibility study to minority partner Highlands Pacific on Friday that indicated the $5.6 billion capital cost estimate, Paul Gow, general manager of the Frieda River project, said in a statement.
Rising costs have forced many miners to review the spending required on greenfield copper projects as they battle over a limited pool of skilled workers and equipment, particularly in remote locations like Papua New Guinea (PNG).
Antofagasta on Friday halted development at its $1.7 billion Chilean copper mine Antucoya as it reviews escalating costs, and Xstrata put back a target to start production at the Tampakan copper-gold mine in the Philippines by three years to 2019 earlier this month.
Xstrata had estimated the Frieda River project to cost $5.3 billion when it released an earlier study two years ago.
The company, with an 81.8 percent stake in Frieda River, sees the mine yielding 304,000 tonnes of copper at an average cost of 71 U.S. cents per pound over the first five years.
Over the entire life of the operation, it sees an average yield of 204,000 tonnes annually at a cost of $1.11 per pound.
Xstrata is expected to review its pipeline of copper projects after its takeover by Glencore International .
The company is following the course of other mega miners, including BHP Billiton and Rio Tinto , in conserving capital amid uncertainty over global growth and falling commodity prices.
Earlier this year, Xstrata flagged its willingness to potentially sell all or part of its stake in Frieda River after conducting a review of its operations worldwide.
It said on Monday it had not made a decision yet on whether to divest or partially divest the project at this stage.
"Xstrata is currently assessing the interest of other investors in the project but declines to comment about potential timetables," a company spokesman said in an email.
Highlands Pacific said discussions were planned next year to determine future ownership of the project.
"During 2013 we will hold discussions with all parties, including the PNG government to determine the project's development path and the desire of the PNG government to take up a direct 30 percent equity stake in the project," it said.
Via its Petromin investment arm, PNG has invested in 17 projects, including a $19 billion liquefied natural gas field under construction by Exxon Mobil .
It is allowed to take up to 30 percent of mining and 22 percent of oil and gas projects, which it must then help fund.
Exxon Mobil in November said it faces a $3.3 billion spike in costs at its gas project in Papua New Guinea.
This year BHP scrapped an $80 billion spending plan, which included delaying indefinitely the expansion of its Olympic Dam copper mine in Australia, where analysts estimated costs had ballooned three-fold to more than $30 billion in just two years.
Shares in Xstrata were trading 1.1 percent higher at 1,062 pence by 1206 GMT, outperforming a flat FTSE 100 index. 

Marengo expects to start production in 2016

By MALUM NALU

 Marengo copper project in Madang province expects to commence production in 2016, according to its latest investor presentation for December 2012.

Map of current major mines in PNG, which will include the Yandera project when it starts production.

According to the presentation, Yandera is a world-scale copper project which features:

• ·         Strategic, long-life porphyry copper asset;

• Outstanding growth potential;

• ·         Enhanced by recent high-grade results;

• ·         US$150 million invested to date;

• ·         Feasibility study nearing completion;

• ·         Targeting financing and approvals in 2013;

• ·         Strategic development partners are in place; and

• ·         First production is targeted for 2016.

Marengo Mining is the project developer while development partners are China Nonferrous Metals’s Foreign Engineering and Construction Co Ltd NFC), and Petromin.

NFC is the principal contractor under fixed price engineering procurement and construction (EPC) contract covering the total project construction cost, will facilitate financing of at least 70% of capital cost – financing to be provided by Chinese banks, will off-take for a portion of the copper and molybdenum concentrate to be produced, and may participate in future Marengo equity listings.

Petromin is wholly owned by the Papua New Guinea government, the investment and cooperation agreement establishes the framework for it to acquire a 30% contributory interest in the Yandera project, and will fund its pro-rate participation in the Yandera project after reimbursing Marengo Mining’s costs to date.

Yandera, located 95km south-west of Madang, is one of the largest undeveloped copper projects in the Asia-Pacific.

It has a 1,730 sq km tenement and application package in emerging mining province, with less than 5% of structural corridor drilled to date.

According to an update resource estimate in April 2012, Yandera has a significant conversion of tonnes to the measured category, increasing confidence in the targeted minimum 20-year mine life plan.

So far over 174,000m of drilling has been carried out in 550 diamond drill holes.

Currently, three rigs are on site for in-fill drilling and exploration programmes.

PNG optimistic of deal with Fiji

By GERALDINE PANAPASA

Fiji Times

 

THE Papua New Guinea government believes Vodafone Fiji's impressive performance in the Fiji market can guide bemobile to success.

This follows the recent announcement by PNG Prime Minister Peter O'Neill that Vodafone Fiji and the Fiji National Provident Fund had been invited to take up equity in the PNG-based mobile company.

"Vodafone Fiji and its partner FNPF have confirmed they are doing so.

“A due diligence exercise is underway right now," said media adviser to the PNG Prime Minister, Daniel Korimbao.

"Once this is completed, IPBC (Independent Public Business Corporation of Papua New Guinea) will announce the details.

"We have not been given any indication on the timing of this.

“It is confirmed as the PM announced that the PNG government will retain controlling interest in bemobile, and will recapitalise the company."

 Korimbao said Vodafone Fiji had been invited to manage the company.

He said a consortium bought into bemobile in 2008.

"The consortium consists of Hong Kong-based General Enterprises Management (GEMS) with 20%, US-based Triology International Partners (20%), NASFUND of PNG (5%) and Nambawan Super of PNG (5%)," Korimbao said.

"They put up K150million (approximately F$129.4million) for 50%, Telikom PNG Limited, owned by the PNG government, held the other 50%.

"They promised a roll-out programme and set certain milestones they said they would achieve.

"But the company simply failed to take back ground in the market share from Digicel which only entered the PNG market in 2007."

 Meanwhile, Korimbao said Digicel dominated the PNG mobile phone market controlling 85% of the market with its products.

Taiwan prosecutors drop charges in Papua New Guinea diplomacy scandal

Want China Times

Chiou I-jen attends a court session in Taipei, Feb. 2. (Photo/Chen Chih-yuan)

The Taipei District Prosecutors Office last Tuesday decided not to press charges against two former senior officials for their roles in the high-profile Papua New Guinea diplomacy scandal.
The prosecutors said there was not enough evidence to press charges against former National Security Council secretary-general Chiou I-jen and former foreign minister James Huang in the scandal.
They said that Ching Chi-ju, former vice chairman of the Taipei-based BES Engineering and his associate, Wu Shih-tsai, allegedly told Chiou and Huang that they could help broker the establishment of diplomatic relations with Papua New Guinea, if the government remitted US$29.8 million to a joint bank account set up by them.
The ministry, in a bid to promote diplomatic relations with Papua New Guinea, remitted the money to the joint bank account. But it turned out to be a fraud, and the two made off with all the money in the account.
Chiou and Huang allegedly were also involved in dividing up the money.
But prosecutors said their investigation showed that Huang had taken a cautious attitude in reviewing the establishment of diplomatic relations with the island country in southwestern Pacific, and if he had wanted to line his pocket, he didn't have to go the distance in remitting money to Singapore.
In addition, Chiou only introduced Ching to Huang, and he was not involved in the process of establishing diplomatic ties.
Also, prosecutors have not found any evidence that the money in the account in Singapore was channeled into the banking accounts of Chiou and Huang or their family members.