Highlands Pacific to make a small fortune from Frieda mine – but will Papua New Guinea get a similar return?

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?

Highlands $127 million a year will be a pure cash profit and will come from just its 16.6% stake in the mine.

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?

1 Comment

Filed under Financial returns, Human rights, Papua New Guinea

One response to “Highlands Pacific to make a small fortune from Frieda mine – but will Papua New Guinea get a similar return?

  1. warren

    trying to forward this article , to friends, why cant this site allow me to do same ??

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