Category Archives: Mining

Wafi-Golpu project worth K12.7 billion

September 1, 2017
Source: Post Courier

The Wafi-Golpu project being developed by Newcrest Mining Limited in the Morobe Province is an investment collectively worth US$4 billion (K12.7b).

It has the potential to contribute substantially to the economic growth not just in the region it is located in but the country as a whole.

Newcrest’s chief executive officer (CEO) Sandeep Biswas said this yesterday during the signing of a Memorandum of Understanding between the miner and the Australian High Commission to formalise their collaboration in support of development projects in PNG.

Mr Biswas said he was pleased to be back in the country, adding this was his first visit since the formation of the new government.

He said he was particularly pleased to hear from government and more particularly from the Prime Minister Peter O’Neill and his deputy and Minister for Treasury Charles Abel on the plans on how they intend on getting the economy back on track.

He said the company was a long term partner not just of government but the country and his visit was to reinforce that fact.

“The 100 plan that has come out recently, it was really good to see a number of items in there that seek to maintain the fiscal and regulatory certainty in the country,” he said.

He said the Lihir Gold project, which the company currently operates in PNG was already making significant contributions not just to the local economy but nationally as well and that the Wafi/Golpu project had the potential to add to that.

In that regard he said the company was pleased it is part of the 100 day plan and that the continued to looked forward to working with the local and national government to try and move the project forward.

 

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Landowners told to engage consultant on oil spill issue

May 16, 2017 – The National 

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LANDOWNERS whose fisheries and coastlines have been affected by the oil spill in Fairfax Harbour need to get independent advice to see if they can sue Puma Energy for any damage caused to the environment, an expert says.

The expert from the Conservation and Environment Protection Authority (CEPA), said the landowners need to engage a consultant to look into their case.

“The query in relation to the possibility of local landowners suing the company is yes, however, it is well obvious that Puma is registered and has a valid environment permit which has obligation to fulfil the respective permit conditions.”

The spill at Fairfax Harbour, Port Moresby, occurred on April 25 from a leak from a subsea hose leading to Puma’s Kanudi terminal facility. The leak resulted in about 19 barrels of oil product being released into the harbour area, Puma said at the time.

The National asked the CEPA expert yesterday, who asked not to be named, for his opinion and he said: “It is now onus on the local landowners to engage an independent environmental consultant to independently calculate and verify the environmental damage caused by Puma Energy and taken up to key stakeholders – CEPA, Department of Justice and the Department of Petroleum and Energy.

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Puma Energy Staff cleaning the Oil Spills

“I understand that the CEPA has cooperated with Puma in working together to address this oil spill which were in relation to regulatory compliance under the Environment Act 2000 administratively.

“Our Environment Act 2000, in my personal view, is not that effective in considering the case of the local landowners when it comes to the environmental damage. However, we have a clause under Environment Act 2000 that warrants the emergency clean-up should CEPA see that Puma is not doing enough to control the environmental damage.”

Puma’s country manager, Jim Collings, told journalists last month that Puma wanted to “reassure people that this is a product that has been contained and cleaned up and we are managing that. We will continue to work to ensure that any work on the shore gets cleaned up”.

Collings said Puma safely dealt with 100,000 cubic metres of oil each month – approximately 630,000 US barrels – and that the incident posed no threat to the local fishing industry and marine life in the area.

Australia confident of PNG’s Economy

By MATHEW VARI


AUSTRALIA maintains its confidence in the Papua New Guinea economy with renewed investment to strengthen economic ties despite the tough economic climate at present.
Australian High Commissioner Bruce Davis told yesterday’s leaders’ summit in Port Moresby about Canberra’s enduring ties which extend to the business front with strong economic two-way trade.
“Our deep enduring ties extend to business trade and investment, reflecting our strong economic partnership,” Mr Davis said.

Bruce Davis – Australian High Commissioner


“Two-way trade is worth around K14 billion with about 64 per cent of trade exported from Papua New Guinea to Australia.
“This wasn’t trade of just traditional commodities like gold and petroleum – Australia imported almost K100 million worth of coffee from your growers last year, 30 per cent increase from the year before.”
Mr Davis pointed out investments by Australian companies currently stand at around K45 billion in a diverse range of sectors from banking and finance, tourism and legal services, mining oil and gas and others.
He highlighted the importance of bilateral trade investment as a major reason to establish its consulate-general office in Lae.
“There is a market in Australia for cocoa and other agricultural products in Australia too. In fact one Australian iconic chocolate company sources a significant percentage of its cocoa from Papua New Guinea due to its very special and unique flavour.
“This reflects our continued confidence in the economic future of Papua New Guinea. We recognise that Lae is an important commercial hub of Papua New Guinea, home to your largest port, largest manufacturing, and the gateway connecting the islands and the highlands. It is also home to a specific number of Australian businesses.”
The high commissioner maintained the importance of ongoing dialogue to the partnership for both countries to take advantage of opportunities and challenges that the two face, with both being resource based economies having felt the brunt of the recent downturn in commodity.
He maintained the need to harness the Asia-Pacific markets which can be beneficial with less red tape to trade freely to grow small and medium sized businesses.
http://www.postcourier.com.pg/Stories/australia-confident-in-png-economy/#.WNlWVJHXef1

PNG Government commits K300 Million to Star Mountain Plaza hotel

BY KEVIN TEME
THE PNG Government has committed K300 million for the building of the five star hotel – Star Mountain Plaza at Hohola in Port Moresby.

Managing Director of Mineral Resource Development Company Augustine Mano confirmed this yesterday on a tour of the site.

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Mr Mano said this is a milestone in itself as it is also the first time the government has partnered landowners in a major project as such.
“The State participation on this project shows a true partnership in every sense between the landowners and the government. We’ve had two NEC decisions, one in 2014 on the concept which the government had approved through the NEC and the second was in 2015 which is the project agreement,” Mr Mano said.
He revealed that the Government lived up to its commitment and has now committed K300 million for this project. “I want to thank you the government in having faith with the landowners to invest in such an iconic project like this,” Mr Mano said.
He said the project comprises two phases, the first of which will be completed two months before the APEC meeting in November 2018 while the second phase will continue thereafter.

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The project is being constructed at a cost of K1.2 billion with landowners as major shareholders at 80% and the government with the remaining 20 percent.

He reiterated this was a first such collaboration between landowners and the State.

Meanwhile, project manager Brian Eldridge said stage one includes the Hilton hotel, convention center, combined facilities and car park while stage two will include Hilton residential tower with 200 apartments.

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“The earthwork contract, negotiated with Vuksich and Borich (PNG) Ltd is delivered on budget including the car parks which has been completed and also on budget,” Mr Eldridge said.
He said 30,000 cubic meters of bulk earth works has also been completed and the hotel structure is complete.

Mr Eldridge said the convention center roofing laminate will commence on July 3 and will be completed by November 30 this year.

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Post Courier Live

Talks began on re-opening Panguna mine

BY SEBASTIAN HAKALITS – 1st March 2017
BOUGAINVILLE Copper Limited (BCL), under a new regime, is keen on re-opening the Panguna mine with promises of more equitable sharing of wealth with landowners and the Autonomous Bougainville Government.
Company chairman Robert Burns was in Buka last week and met with Bougainville cabinet ministers and landowner groups to put forward BCL’s proposals for start-up by year 2020.
According to BCL’s proposals on full operations from 2020 and beyond, it will inject US$350 million (K1 billion) a year to the Bougainville Government.
BCL has projected to pay about US$25 million (about K70 million a year) to the nine landowner associations to distribute among themselves.

The details of the BCL forward plans for Panguna were made at a presentation by the company recently.
BCL operated the Panguna mine for 18 years as a subsidiary company of Rio Tinto until it was shut down by the infamous Bougainville crisis from 1988 to 1999.

Panguna Mine


But the company was under a new regime after Rio Tinto left and during the process, off-loaded its majority of 53 per cent shares, of which a majority of 36 per cent belongs to Bougainvilleans, to the ABG.
The National Government owns 19 per cent, Panguna landowners 17 per cent and the rest other shareholders in Europe.

Mr Burns said in his presentation that BCL would engage with the ABG and landowners to fast-track and remove the impending issues to “create something very special for Bougainville”.
He said the company was ready and very much interested and committed to access Panguna and carry out the activities of feasibility and environmental studies before re-developing the mine. But he insisted that the ABG must support the company in its endeavours to remove any impediments so that it can have easy access to the Panguna mine area.
Source: Post Courier

Inaugural PNG Petroleum and Energy Summit starts today

By: Post Courier – 28th February 2017

The Inaugural PNG Petroleum and Energy Summit is aimed at building platforms for future projects in the petroleum and energy sector. Speaking to the media yesterday, Kumul Petroleum Holdings Limited (KPHL) managing director Wapu Sonk highlighted the need for more energy to source power for electricity.

He said the summit was one that would bring people with expertise to engage and help the government achieve its vision 2030 and 2050 goals.

Mr Sonk said that the main driver for this summit is to look at how far the country has come as an industry since the oil and PNG LNG productions in 2014 and with few more developments that were planned.

Taking advantage of that, he added that they are now looking at how best they can help the government in achieving its vision 2030 and 2050 by moving into the energy sector so that the people of this country can have access to cheap and reliable power services (electricity).

“The main purpose of this summit is to bring people and their expertise as well as finances to PNG. Therefore through this summit we can be able to exchange knowledge and making connections that will make the government’s visions for its people to have access to electricity a reality.

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“Our people need energy so we are trying to get to that platform, we are trying to find energy solution providers and with this summit we are hoping that they will come and provide us with that, whether it is geothermal, solar solutions, or hydro solutions.

“Those are the type of energy solutions that we are looking to bring, using our projects that is happening in the oil and gas,” he said.

Mr Sonk said using the experiences that the industry has from the PNG LNG Project, the third training including the Papua LNG projects were trying to build platforms that would enable the government to work with them to set project policies.

A total of 450 delegates are confirmed to attend the summit starting today and will end on Thursday. The delegates comprise mainly of existing LNG buyers and some prospective buyers and have also attracted a lot of big names in the industry, according to Mr Sonk.

 

http://www.postcourier.com.pg/Stories/summit-to-build-pngs-energy-sector/#.WLSv7W996Ul

Over K150 million in Royalties in 2016

BY: Cedric Patjole 15:00, February 18, 201

Over K150 million in royalty payments have been made in 2016.

According to Mineral Resources Authority (MRA) mining activity in five projects generated K158.11 million.

The resource companies to have contributed are Simberi Mine (New Ireland), Hidden Valley (Morobe), Ok Tedi (Western Province), Porgera (Enga), and Lihir (New Ireland).

The following are royalty payments made by the resource companies.

  • Simberi Mine – K7.55 million
  • Hidden Valley Mine – K14.24 million
  • Ok Tedi Mine – K28.34 milion
  • Porgera Mine – K39.46 million
  • Lihir Mine – K158.11 million
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The royalties are a reflection of a rebound in the mining sector which the MRA says is reflected by several factors. They include:

  • Improving mineral commodity prices, with the exception of copper. However, copper reacted to Trump the opposite to gold, and is currently up more than a third in value since hitting 6 year lows in February 2016;
  •  Rising production at key mines, notably Lihir (exceeding 903,000 oz gold) and Ok Tedi (copper up 77%, gold up 54% & silver up 96% on 2015); and
  • Benefits from plant upgrades, greater efficiencies and new management strategies, especially at Lihir, Ok Tedi, Porgera and Simberi mines

The MRA says 2017 will still hold many challenges, but anticipates that a steady state of commodity prices and mine production is maintained to underpin the gains of last year and for mineral revenue will break through K10.5 billion this calendar year.

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