By Cuma PNG
A "new frontier" in mining is set to be opened up by the underwater extraction of resources from the seabed off the coast of Papua New Guinea, despite vehement objections from environmentalists and local activists. Canadian firm Nautilus Minerals has been granted a 20-year licence by the PNG government to commence the Solwara 1 project, the world's first commercial deep sea mining operation. Nautilus will mine an area 1.6km beneath the Bismarck Sea, 50km off the coast of the PNG island of New Britain. The ore extracted contains high-grade copper and gold. The project is being carefully watched by other mining companies keen to exploit opportunities beneath the waves. The Deep Sea Mining (DSM) campaign, a coalition of groups opposing the PNG drilling, estimates that 1 million sq km of sea floor in the Asia-Pacific region is under exploration licence. Nautilus alone has around 524,000 sq km under licence, or pending licence, in PNG, Tonga, New Zealand and Fiji. "PNG is the guinea pig for deep-sea mining," says Helen Rosenbaum, the campaign's co-ordinator. "The mining companies are waiting in the wings ready to pile in. It's a new frontier, which is a worrying development. "The big question the locals are asking is 'What are the risks?' PERTH (miningweekly.com) - ASX-listed gold junior Kula Gold would be submitting a mining lease application for its Woodlark Island gold project, in Papua New Guinea (PNG), during the last quarter of this year, after a project feasibility study proved positive.
The feasibility study concluded that the project could recover some 674 000 oz of gold over the first six years of operation, through a 1.8-million-ton-a-year plant, based on a mineral resource of 19.7-million tons, at 2.45 g/t gold. The project was expected to have a life-of-mine of some nine years, with the final years of gold production scheduled to come from low-grade stockpile. Further infill drilling and regional exploration success would allow the scheduling of this stockpile to be deferred and replaced with processing of higher grade ore. The project would require a capital investment of some $160-million, and would have a net present value of $237-million, assuming a $1 600/oz gold price. “The feasibility study confirms the Woodlark Island gold project is technically sound and economically viable with robust project economics,” said MD Lee Spencer. “The study also vindicates our decision to conduct further infill drilling, thereby increasing ore reserves, enabling us to increase plant capacity and bolstering project economics.” Spencer noted that the company would now move to lodge applications for key project approvals with the PNG government and advance financing options for the project. “This is an exciting period for the project development as the company moves closer to producer status,” he added. Environmental studies for the project would also be submitted during the fourth quarter of this year. Coppermoly (ASX: COY) has received positive results from a recent Conceptual Mining Study at its Nakru-01 copper-gold-silver project on New Britain Island, Papua New Guinea, indicating the development of the copper deposit could be cash flow positive within two years. As a result of the positive financial outcome, Swain Engineers have recommended that the Nakru tenement continue to be explored for additional copper ore, and for drilling to continue at Nakru-01 and Nakru-02 to define the extent of mineralisation prior to Feasibility Studies. The study envisaged an open pit containing an estimated 40 million tonnes run of mine ore to support a 5 million tonne per annum operation for an eight year mine life. Key findings include recoveries of around 90%, and a waste to ore ratio of 2 cubic metres:1 tonne. Estimated capital costs are around US$458 million, while operating costs are estimated at US$16.50 per tonne of ore, with the project expected to complete payback within two years. Shipping would utilise the existing wharf at Kimbe or a new wharf built on the south coast. Importantly, the study also found the potential for a significant increase of the tonnage in the area. Peter Swiridiuk, managing director, commented on the positive findings: “The company is delighted that at such an early stage of drilling, the development of the Nakru-01 copper deposit could be cash flow positive within two years. “The majority of holes drilled to date are mineralised, so the full extent of mineralisation is yet to be defined on the Nakru exploration licence. “In addition, Nakru-02 is located one kilometre to the west with only three drill holes completed to date, all of which are all mineralised. “Additional drilling is now required to define the extent of mineralisation of each target to determine the tonnage potential in the area ahead of pre-feasibility level study. “Additional drilling is being undertaken by Barrick this year to keep the tenement in good standing, while they seek to divest their 72% stake in the project. “Coppermoly will continue exploring its nearby 100% wholly-owned Makmak tenement, which is immediately south of Nakru.” (Datamonitor via COMTEX) -- Esso Highlands Limited, which is engaged in gas production and processing facilities, onshore and offshore pipelines and liquefaction facilities, has commenced drilling operations of the PNG LNG project at the Hides natural gas field, located in the Southern Highlands Province of Papua New Guinea.
The drill wells will produce approximately 9 trillion cubic feet of natural gas over the life of the Project. "The PNG LNG Project is unique and important for Papua New Guinea. The start of our drilling program is a key step in meeting our goal of first LNG deliveries in 2014," said drilling manager Jim McDermott. The designed Nabors Rig 702 is being used to drill the initial well, the first of several natural gas production wells at Hides. The rig has incorporated features to help safely and effectively drill PNG's resource. It has been designed to withstand earthquakes and includes containment equipment and facilities to protect the environment. A second rig to be used in the PNG LNG Project drilling program has arrived in PNG and is currently being transported to the Hides area. "We have an exceptional team, including Papua New Guinean drilling engineers who recently returned from Melbourne, Australia, where they spent a year-and-a-half learning about ExxonMobil's drilling operations. They are now putting their training into practice," said Mr. McDermott. KUALA LUMPUR: Singapore-listed CCFH Ltd is looking to buy a stake in Mata Brait (PNG) Ltd, a Malaysian company involved in logging and rubber plantations, and jointly develop an agro-forestry project in Papua New Guinea that will see them transforming 27,000ha into sustainable rubber plantations.
"We will buy a stake in the company (Mata Brait) as it holds the licence to the project in Papua New Guinea. We are now in talks (on the percentage of CCFH stake in Mata Brait)," CCFH CFO Darren Tan Poon Guan told reporters after the signing of a memorandum of understanding (MoU) between CCFH and Mata Brait, here yesterday. Under the MoU, the two companies will begin work towards a definitive agreement. Tan said the execution and completion of the agreement is subject to a satisfactory due diligence review by CCFH, negotiation between CCFH and Mata Brait on the terms and conditions of the definitive agreement, regulatory approval, and shareholders' approval if required for the proposed investment. |
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