Foreigners barter for control of Frieda river mine while landowners have no say

Big profits to be made in this foreign auction of PNG resources – but none of that money will filter back to PNG…

Will the Chinese or the Australian's get to destroy the Frieda river?

Will the Chinese or the Australian’s get to destroy the Frieda river?

PanAust Rejects New A$1.1 Billion Guangdong Offer as Too Low

James Paton | Bloombeg

PanAust Ltd. rejected a new bid from China’s Guangdong Rising Assets Management Co. that valued the copper producer at A$1.1 billion ($840 million) as too low.

Guangdong Rising, PanAust’s largest shareholder, should pay more than A$1.71 a share if it wants to boost its ownership, the Brisbane-based company said Wednesday. PanAust rose as much as 0.9 percent to A$1.755 in Sydney trading.

“With PanAust’s share price now trading above the GRAM offer price, it suggests that the market also agrees with this view,” according to the statement. The PanAust board is open to talking with the state-owned Chinese investor to determine whether the two sides can agree on a price, the company said.

Guangdong’s cash offer, 40 percent higher than PanAust’s share price before the bid last month, is “unconditional and not subject to the board’s recommendation,” the Chinese company said in a separate statement.

The cash bid in March was unsolicited and made when both the producer’s shares and copper and gold prices were trading at or near five-year lows, PanAust said at the time.

PanAust, seeking to develop one of the world’s largest undeveloped copper and gold deposits at Frieda River in Papua New Guinea, last year rejected Guangdong Rising’s previous offer of A$2.30 a share.

2 Comments

Filed under Financial returns, Human rights, Papua New Guinea

2 responses to “Foreigners barter for control of Frieda river mine while landowners have no say

  1. Moses

    Inap ya plis. Umi dai dai stap na sampla lain wok lo wokim mani lo graun na resources blo mipla wansait stret. larim nau. umi stap tsol na weit lo stopim mine ya.

  2. Fred Hela

    I would suggest if landowners or the govt of people at Vanimo and Waigani are reading this not to rust out to help sign any agreements. It may backfire. Also warn to foreigners this resource belongs to the people of Freida River area, NOT, I SAY AGAIN NOT belong to PanAust or any other foreigner. I think we had enough of Govt and greedy foreigners taking our mineral wealth for nothing at our sufferings.

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