See, its not Papua New Guinea’s Frieda river mine: First it was Xstrata’s and then PanAust’s and now another bit of PNG is owned by the Chinese…
But when did the landowners ever give their consent to the loss of their land and their rights?
And when we will stop letting the industrialized world get ever richer by taking our resources while we just get worse and worse off as we deal with all the environmental and social costs…
Peter Ker | The Age
PanAust suitor Guangdong Rising Asset Management has secured funding to complete a feasibility study into the Frieda River project in Papua New Guinea.
The Chinese company behind the $1.4 billion takeover of PanAust Limited is set to move quickly on the copper miner’s prize asset, with a preliminary funding deal for the Frieda River project set to be announced as early as Monday.
Guangdong Rising Asset Management’s (GRAM) ownership of PanAust rose to 87.38 per cent by Friday afternoon. The Chinese group will unveil a memorandum of understanding with the Bank of China on Monday as it seeks to convince remaining shareholders to accept the offer.
Under the non-binding agreement that will be announced in Sydney, Bank of China is expected to provide funding to complete the $50 million feasibility study for the $US2 billion Frieda River project, located in the highlands of Papua New Guinea. The bank is also expected to be involved in funding the eventual construction of Frieda River, as well as other PanAust assets around the world.
Officials to attend signing
The agreement is expected to be inked in front of a Chinese delegation to Sydney led by the governor of Guangdong province. GRAM chairman Wei Zhu is expected to attend the event along with officials from PanAust and Bank of China.
GRAM’s offer to pay $1.85 for each PanAust share is scheduled to close on Wednesday. The group requires a further 2.62 per cent of PanAust shares to accept the offer to move to 90 per cent ownership and compulsory acquisition of remaining shares.
GRAM’s move on PanAust is another demonstration of China’s strong interest in copper deposits, following MMG’s purchase of the Las Bambas copper asset in Peru last year and China Molybdenum’s purchase of the Northparkes copper and gold mine in NSW in 2013.
A copper shortage is expected to emerge by the early months of 2017 and is expected to push copper prices higher. The red metal was fetching $US2.79 per pound on Sunday.