Category Archives: Papua New Guinea

Govt Urged Not To Rush Mining Laws

Post Courier | July 25, 2017

The Mineral Resources Authority’s (MRA) challenge going forward, is for it to reposition itself to effectively regulate the sector through the amendments to the laws that are before parliament. These include the Mining Act and the Mineral Resources Act. This is from MRA’s outgoing board chairman Robin Moaina.

Mr Moiana has been replaced by Ok Tedi Mining Limited’s deputy chief executive officer Musje Werror after 10 years at the helm of this regulatory entity.

Mr Moaina said both acts were before parliament.

He said the MRA board was never informed nor consulted on the whole process of how the Government went about amending the MRA Act in particular, and which remained a concern to him.

He had appealed to the incoming government not to rush into passing both amended acts; instead, to re-engage on the fundamentals of these proposed legislations.

He said this is to ensure the growth and investment of the exploration and mining sector in PNG.

The outgoing chairman said he was proud of MRA’s achievements over the past decade, and he was confident the authority would continue to support the government through its role.

“The organisation has grown from strength to strength and developed very robust and competent systems to service stakeholders of the exploration and mining sector including the government,” he said.

In congratulating his successor, Mr Moaina said he was confident Mr Werror would continue to provide the leadership needed by the board and management.

Mr Werror, who was elected during a recent board meeting, had assured of his commitment to engage with all stakeholders including industry, government and the landowners.

“MRA regulates the mining sector, which is an international business. It therefore has to continue to improve its regulatory services to meet that international expectation but do so within the laws of PNG,” Mr Werror said.

“I am confident MRA has the board and management expertise to effectively regulate the sector and to promote its growth to sustain the economic prosperity of the country.

Leave a comment

Filed under Papua New Guinea

Crater Gold Mining is reinvigorated, debt free and focused on PNG gold

Alexander Molyneux, proposed chairman

Papua New Guinea is home to multi-million ounce major gold mines

Proactive Investors | 24 July 2017

Crater Gold Mining Ltd has undertaken a transformation change, and is back trading on the ASX.

New funding will retire material debt and leave circa $4.3 million to $5.1 million in cash to pursue its strategy at the flagship Crater Mountain Project in Papua New Guinea.

The new “Crater Gold” company will have a recognised mining industry leader on the board and in management.

The project is highly prospective, and contains two separate existing epithermal gold Inferred Resources which combined exceed 800,000 ounces of gold.

This resource was formulated from just 14,500 cumulative linear metres of drilling that mainly took place in 2010-2013.

At the time the company became side-tracked the proposed development a small-scale mining operation and taking on a debt burden to do so.

A re-invigorated Crater Gold aims for a transformational increase in resources, which will be done by the purchase of two drill-rigs to be based at the project.

This will deliver over 10,000 cumulative linear metres per year.

Funding strategy

The funding injection will include up to $16.2 million, comprising:

– A 11 for 2 renounceable pro–rata entitlement offer at $0.01 per share to raise at least $13.0 million and up to $15.0 million before costs; and
– The proposed conditional sale of 100% of non-core Croydon Project for $1.2 million in cash.

Why Papua New Guinea

Papua New Guinea is home to multi-million ounce major gold mines with operators such as Barrick, Newcrest and Harmony present.

The country’s annual production exceeds 2.1 million ounces and has been growing.

PNG also offers a stable and competitive tax and regulatory regime – no material change in minerals law for 25 years – and the currency is ‘pegged’ to USD.

Adding further interest, incoming directors regard the owner of nearby Kainantu Project, K92 Mining as a key relevant peer.

A new name and new board

The current proposed name change is to Paradise Gold Mining Ltd.

Sam Chan and Richard Johnson have agreed to resign from the company’s board and three new proposed directors have agreed to join on completion of the entitlement offer.

The three new proposed directors are:

  • Alexander Molyneux, proposed chairman – 20-years’ experience in the minerals industry as an executive, director and specialist industry investment banker.
  • Dorian L. (Dusty) Nicol, proposed non-executive director – Career geologist with over 40-years’ experience in discovery and resource development. Worked extensively in Papua New Guina for Esso Minerals and Rennison Gold Fields, including on Crater Mountain and Kainantu projects.
  • Robert Usher, proposed non-executive director – Mining engineer with more than 25-years’ experience. Significant gold production experience including in PNG with Placer Dome at its Porgera operation from 1993 to 1999.

Leave a comment

Filed under Exploration, Mine construction, Papua New Guinea

Lihir to get Newcrest on target

An overall view of the Cadia mine in Orange, NSW.

Paul Garvey | The Australian | 25 July 2017

For much of its recent history, Newcrest Mining has been relying on its Cadia mine in NSW to make up for the problems at its Lihir mine in Papua New Guinea. Now, the roles are being reversed.

With Cadia out of action ­following an earthquake earlier this year, it was a record quarter from the oft-maligned Lihir that helped the Melbourne-based miner reach its annual production guidance.

Lihir produced 276,230 ounces of gold during the June quarter, up 20.3 per cent for the period in what was a record quarter for the operation.

The strong performance of Lihir — which had historically been the cause of several operational headaches during its early years under Newcrest ownership — helped make up for the sharp decrease in output at Cadia, which was hit by an earthquake in mid-April.

One of two panel caves at Cadia has since restarted production, with the outstanding panel scheduled to come back into operation during the ­September quarter.

The unexpected outage and the cost of remediation work at Cadia will likely weigh on Newcrest’s earnings when it posts it full-year result next month, with the costs associated with the ­incident likely to show up as an exceptional item in its accounts.

Newcrest managing director Sandeep Biswas said the record numbers out of Lihir reflected the “relentless drive for improvement” at the mine.

“Given the disruption to ­production at Cadia due to the seismic event, the overall ­performance this quarter was ­remarkable and demonstrates the resilience of Newcrest’s ­assets,” Mr Biswas said.

Newcrest’s total output for the quarter came in at 551,815 ounces of gold and 12,968 tonnes of ­copper, down from 598,602 ­ounces of gold and 22,074 tonnes of ­copper in the March quarter.

The outage at Cadia, which has historically been Newcrest’s highest-margin mine, meant the company’s all-in sustaining cost margin fell to $US360 an ounce during the June quarter, down from $US521 per ounce in the ­previous three months.

RBC Capital Markets analyst Paul Hissey said that while he ­expected the Cadia incident to affect Newcrest’s upcoming results, the company had been able to limit the damage with improved output from its other key mines.

“While events at Cadia appear largely beyond Newcrest’s control, this result shows that the company has been able to move other levers to broadly mitigate the impact,” he said.

Brokerage Goldman Sachs says the cost guidance in the full year results will be a key driver of sentiment towards Newcrest.

On the exploration front, Newcrest revealed it had applied for 40 exploration tenements in Ecuador, which is emerging as a new gold exploration hotspot. Newcrest has already entered Ecuador through its investment in SolGold, whose Cascabel copper-gold discovery is shaping up as particularly promising.

Newcrest spent another $US40 million on a further 4.5 per cent stake in SolGold during the quarter, taking its interest in the London and Canadian-listed group to 14.54 per cent.

Shares in Newcrest closed 18c, or 0.9 per cent, higher at $19.76.

Leave a comment

Filed under Financial returns, Papua New Guinea

Bell Potter beats drum for PNG minerals explorer float

Ex-New Hope boss Rob Neale lines up as chairman of ASX-hopeful Mayur Resources. Glenn Hunt

Sarah Thompson, Anthony Macdonald, Joyce Moullakis | Australian Financial Review | 24 July 2017

Fund managers will recognise some of the names behind PNG minerals exploration company and initial public offering-hopeful Mayur Resources, which is seeking to hit the ASX boards on September 1.

Queensland resources industry veteran and former managing director of Soul Patts’ coal play New Hope Corporation Rob Neale lines up as chairman, while former Hancock Prospecting executive Paul Mulder would run the listed company as managing director. 

The pair would be joined around the boardroom table by former Gloucester Coal deputy CEO and BHP Billiton iron ore executive Tim Crossley, and former Credit Suisse metals and mining research analyst Paul McTaggart, among others. 

Mayur Resources was seeking to raise up to $15.5 million via the sale of CHESS Depository Interests at 40¢ each. The company is incorporated in Singapore, with operational headquarters in Brisbane and assets in Papua New Guinea. 

In a prospectus lodged late last week, chairman Neale told potential investors that Mayur had been operating since 2011 with the aim of acquiring, exploring and developing mineral and energy opportunities in PNG. 

Funds raised were pegged for a definitive feasibility study of the company’s Orkolo Bay Industrial Sands Project, and to deliver a resource estimate for its Port Moresby Limestone Project, among other uses. 

CEO Mulder doubled as the company’s largest shareholder, with a 52.6 per cent stake prior to the IPO. 

Bell Potter is running the IPO as lead manager and was scheduled to open the raising next week. 

The offer was not underwritten. If successful, the company would list on September 1.

Leave a comment

Filed under Exploration, Mine construction, Papua New Guinea

MRA gets new chairman

Cedric Patjole | Loop PNG | July 21, 2017

Deputy CEO of Ok Tedi Mine, Musje Werror, has been appointed as the new chairman of the Mineral Resources Authority (MRA).

Werror was elected last week by the MRA board members, replacing Robin Moaina, who served as chairman for 10 years.

In a statement prepared by MRA, Werror thanked the board for their confidence in him and said he will make it a priority to continue stakeholder engagement to improve MRA’s services.

“MRA regulates the mining sector, which is an international business,” he said. “The MRA therefore has to continue to improve its regulatory services to meet that international expectation but do so within the laws of PNG.

“I am confident that MRA has the Board and management expertise to effectively regulate the sector and to promote its growth to sustain the economic prosperity of the country.”

Moaina said he was proud of MRA achievement over the decade and is confident the Authority is now a competent and responsible agency that will continue to support the government in its role.

“As the founding chairman of the MRA board, it has been my greatest pleasure in providing governance and leadership oversight to MRA,” stated Moaina.

“This organisation has grown from strength to strength and developed very robust and competent systems to service stakeholders of the exploration and mining sector, including the government.

“I am very confident that chairman Werror will continue to provide a very strong leadership for the Board going forward and I wish the Board, management and staff of the Authority every success in the years ahead.”

1 Comment

Filed under Papua New Guinea

Mining amendments concern outgoing chairman

Cedric Patjole | Loop PNG | July 21, 2017

Outgoing chairman of the Mineral Resources Authority Board, Robin Moaina, has appealed to the incoming Government not to rush into passing the proposed amendments to the MRA Act and Mining Act.

In a statement announcing the new MRA Board Chairmanship of MRA, Moaina said the proposed amendments to the Mining Act and MRA Act remain a concern for him.

This is because the Government did not consult the MRA Board regarding the amendments.

He has called for the government to re-engage on the fundamentals of these proposed legislation to ensure the growth and investment of the exploration and mining sector in PNG.

In welcoming new chairman Muje Werror, he said the challenge going forward is to reposition MRA to effectively regulate the mining sector through the proposed amendments.

Leave a comment

Filed under Papua New Guinea

Doctors warn mining leads to increased rates of diabetes

Be Mindful Of Your Diets, Doctors Warn

Lack Of Proper Management Of One’s Diet And Lack Of Awareness Are The Main Causes Of Diabetes In Papua New Guinea, According To Doctors.

Lynette Kil | Post Courier | July 20, 2017

Lack of proper management of one’s diet and lack of awareness are the main causes of diabetes in Papua New Guinea, according to doctors.This was revealed by secretary of the Diabetic Association in Papua New Guinea, Dr Joyce Sauk during a cheque presentation by the Malaysian charity organization in Port Moresby yesterday (July 19).

“Managing diet in PNG has been a concern and challenge for health workers in the country especially the diabetic foundation,” said Dr Sauk.

She added that not only people in urban centres were diagnosed but also in the rural areas due to the influx of Cash in the areas were mining activities were taking place resulting in change of the diet.

Dr Sauk said a data base system is needed for proper planning in addressing the issue.

“The foundation is currently working on creating one.

“We have been relying on the data provide by World Diabetic foundation five years ago and we need fresh data updated to manage diabetes  in PNG,” said Dr Sauk.

She added that funding is also a problem.

“We are currently relying on donors, as we do not get funding from the health department to implement plans and I thank Malaysian charity organisation for its K20,000 cheque donations to assist the foundation,” said Dr Sauk

Leave a comment

Filed under Papua New Guinea