Highlands Pacific is expecting to make a small fortune – at least US$ 127 million a year – from its share in the proposed Frieda river mine in Papua New Guinea.
But will the people of PNG get a similar return?
Where did these figures come from?
Well, as you can see, they come straight from the horses mouth. These predications were part of a presentation given by John Gooding, Managing Director of Highlands Pacific, earlier this year.
And the actual figure could be even higher as $127 million is based on a copper price of $2.20/lb and gold price of $800/oz.
At prices of $3 and $1000, Highlands cash profit will jump to $187 million a year – and the spot prices for copper and gold are currently about $3.75 and $1350 respectively – no wonder Mr Gooding is smiling these days!
These figures show that if the government insists on a 30% stake in the mine for the people of PNG that could be worth at least $250 million a year – think how many teachers or nurses could be paid with $250 million a year?
But will the government insist on a 30% stake, or will it sell out our interests just as it did with the Ramu nickel mine?