Tag Archives: Indochine

Indochine intends to review court ruling

Cedric Patjole | Loop PNG | May 4, 2018

Indochine Mining Limited and its subsidiary, Summit Development Limited, are planning to appeal a National Court decision upholding a Ministerial decision to refuse the granting of a mining exploration licence to them.

Justice Leka Nablu delivered her ruling on April 27th 2018 following a judicial review sought by Indochine and Summit, on the former Mining Minister, Byron Chan’s decision not to grant Summit the exploration licence (EL 1093) over the Mt Kare Au-Ag Project area.

In a statement, Summit says it respects the Court process that gave rise to the decision, but intends to immediately review the published judgement when available to determine the appropriate grounds for appeal.

The Company’s and Summit’s view is that an appeal is the only way for Summit to secure its rightful tenure of the exploration licence and undertake the development of the Mt Kare project.

The company says it is financially solvent (it is not under any form of external administration), has a strong technical team in place and is fully capable of performing its obligations under the existing, or any further, exploration licence that is granted in respect of the Mt Kare area.

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Judgement on Mt Kare Project EL soon

Cedric Patjole | Loop PNG | April 21, 2018

judgement on the Judicial Review into a Government decision to refuse Summit Development Limited’s (SDL) application to renew Exploration Licence (EL) over the Mt Kare Project will be delivered on 27 April 2018.

The Judicial Review was instituted by Indochine Mining Limited in December 2015 following a Ministerial decision not to renew SDL’s EL 1093.

The Judicial Review was heard on 5th September 2017 by Justice Leka Nablu, who has reserved her decision till the date mentioned.

Indochine acquired the Mt Kare Gold Project in Enga Province in 2011.

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Indochine falls out with PNG authorities

The gloves are off in the dispute between Indochine and the MRA

Seems the gloves are off in the dispute between Indochine and the MRA

MRA slams licence refusal

The National aka The Loggers Times | 7 March 2016

THE Mineral Resources Authority (MRA) says it is concerned about statement made by Indochine regarding a mining licence held by its subsidiary Summit Development Company (SDC).
MRA noted the Australian Security Exchange announcement last Wednesday released by Indochine in relation to former EL (exploration licence) 1093, which was held by SDC since 2010.  
According to the announcement, Indochine was considering legal actions following Mining Minister Byron Chan’s refusal to award SDC to renew licence EL1093. 
The company said it was disappointed that it was not advised that its application was refused and the reason for the refusal, which may have provided the company an opportunity to deal with the reasons. 
It said this was after they had completed all key milestones required by the Mineral Resources Authority.
Mineral Resources Authority managing director Philip Samar said Indochine made 21 points in relation to the tenement renewal process for EL 1093 , which included:

  • At the end of the term of the tenement (28 August 2014), amongst other matters of non-compliance, there was a sum of outstanding compensation owed by Summit to Mt Kare landowners pursuant to conditions in the EL 1093 licence. This outstanding compensation was consequently paid by the administrators in mid-2015; 
  • Mineral Resources Authority wrote to Summit, at its registered tenement holder address in Port Moresby, on 8 January 2016 notifying it of the Minister’s decision and enclosing a copy of the signed and dated refusal instrument. 
  • the Mining Act does not require the notification of a tenement extension refusal, nor is there a Mining Act obligation to provide reasons for such a decision; and, 
  • Mineral Resources Authority can confirm it has received from Summit a new application for the ground at Mt Kare, but under the system of first in time priority under the Mining Act lodgement regime, this application is currently the 4th application received. 

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Mineral Resource Authority Urged To Respect Landowners

PNG Today

mt kare landownersMount Kare Gold Development Corporation (MKGDC) Chairman Pes Watai has blamed the Mineral Resource Authority for causing ‘unnecessary inconvenience’ for landowners of the resource rich area.

Watai was referring to The National story of November 5, 2015 in which a MRA official said that there was no landowner body for Mt Kare and further stated that currently there is no free licence that the landowners can claim ownership and look for investors on their own.

“Whoever MRA official that went out to the media to say there is no landowner body for Mt Kare is an outrageous lie and a direct insult to the landowners,” Watai said.

Watai said that in a letter dated 14 March, 2014 by the Minister for Mining Hon.Byron Chan MP to the Managing Director of MRA Philip Samar, Minister Chan officially recognised MKGDC as the landowner umbrella company.

“MKGDC is not disputing the current exploration licence ( EL 1093) held by tenant holder Summit Indochine Limited that is awaiting renewal by the Mining Minister Hon Byron Chan MP.”

“MKGDC stand united to work for the maximum benefits of the landowners. We have waited and suffered for so long. All we want is for the project to go ahead as soon as possible no later 2016.” Watai said.

“Earlier this month in a special meeting, the 7 major clans comprising of 21 clan agents out of the 37 agents appointed at Mt Kare in the presence of representatives from the Department of Lands and Physical Planning, MRA, consultants, Enga provincial Government, Summit Indochine Ltd ( developer) and landowners during the Land Identification Report/ Land Identification Survey last year ( May- October 2014) unanimously agreed and voted to have MKGDC be the sole legitimate landowner umbrella company to work with the developer, provincial and national government,”

The Special Mining Lease (SML) comprises of 7 major clans area namely Pakeya, Komai, Leyapi, Heli, Yolo and Kewai Terewana in a meeting in which the 21 clan agents agreed to have MKGDC lead their concerns and grievances after the court sanctioned mediation of July 24 and August 2015 respectively confirmed 19 major landowning clans,” Watai said.

In the meeting earlier this month, past differences and interclan rivalry and tassle for leadership positions were also amicabicably resolved in the meeting with another faction of a landowner umbrella company executive pledging his support to work with MKGDC under the leadership of Watai.

Chairman of Ipaita Limited Peter Tako fully pledged his support to work under MKGDC and committed to submit under the leadership of Watai.

Tako said that he had to put aside the leadership tussle and work together for the betterment of the landowners of the project area to start no later than 2016.

Watai thanked Tako for showing mature leadership by putting aside all differences and to work together for the maximum benefit of the landowners.

“The November 05 story even stated that MKGDC was trying to claim ownership and look for an investor on our own which is totally wrong and misleading,”

“I respect and applaud the mediation process presided over by Justice Kandakasi and Deputy Chief Magistrate Mark Pupaka.”

“The mediation process is seen as a light at the end of the tunnel because this issue has been dragged through the mud for 30 years without development in which genuine landowners were dying instead of benefiting.” Watai said.

“I urge the responsible authorities to do whatever it takes to have the project started as the landowners stand united to work with the developer, MRA, provincial and the national government.”

“All we want is development, service and change in our area as soon as possible.” Watai said.

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Landowners support Mt Kare gold project developer

The National

A GROUP of landowners from the Mt Kare gold project in Enga are supporting the project developer.

The group representing the clans of Pakeya, Leyapi, Heli, Komai, Yolo, Kewai Terewana and Yangeyame said the Summit Development Ltd, a subsidiary of Indochine Mining Ltd, was able to demonstrate commitment in resolving landowning issues.

They want the company to continue with development of the project.

Landowner chief Timothy Hewe Balope said in supporting the work of Summit Development, the landowners wanted the Government to fast-track the renewal and granting of the exploration license (EL) 1093 to the firm.

“We have seen and experienced a lot of companies coming into develop a project but they shut down operations,” Balope said.

“For the past years, the work by Summit especially with the success of the Land Investigation Study and Land Investigation Reports conducted by the firm has been well received by all landowners.

“The company has done well in its exploration work and we want them to continue with that.

“The EL 1093 held by Summit Development expired in August of last year and since then there has been no word from the Mineral Resources Authority and the Mining Minister’s office on the renewal.

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Mt Kare mine developer denies liquidation

Above: Royal Papua New Guinea Constabulary parade at Mt Kare. Photo: Nigel Nawara

Above: Royal Papua New Guinea Constabulary parade at Mt Kare. Photo: Nigel Nawara

Leo Wafiwa | PNG Loop

The directors of Summit Development Limited (SDL), the developer of Mt Kare gold project have advised all stakeholders that the company is not in liquidation as per “some rumours’’.

Director of Summit Development Limited, George Niumataiwalu, today said the parent company of SDL, Indochine Mining Limited (IDC) was placed into voluntary administration by the directors of IDC. Therefore the company appointed Darren Weaver, Ben Johnson and Martin Jones as Joint and Several Administrators pursuant to section 436A of the Corporations Act 2001.

“It is important to note that this appointment only relates to IDC and not its subsidiaries.

“Voluntary administration (in the Australian context) is a procedure where the directors appoint an external administration whose role is to work with the directors to develop and implement a financial re-organisation solution for the benefit of all stakeholders,” the Fijian director said.

He explained that the ultimate aim of a voluntary administration is to achieve an outcome that results in a better return to stakeholders than would otherwise have been achieved in a winding up.

“The appointment of voluntary administrators does not necessarily mean that the company is going into liquidation. The board and management of IDC have been, and will continue, in conjunction with the administrators, to seek to secure the necessary funding to provide for the long term, viability of Mt Kare.

“IDC remains committed to turning Mt Kare into a profitable, long life operation.”

Mr Niumataiwalu said that the decision to place the company into voluntary administration did not enforce any action upon Summit, a PNG subsidiary of IDC and they would, for the most part, continue business as usual except that the administrators would direct the affairs of the parent company.

Mr Niumataiwalu added that as to the Mt Kare project, the administrators had been in contact with the Mineral Resources Authority (MRA) in preparing for a restructure of the project, to maximise returns to all creditors and preserve its future value for landowners and creditors alike.

Indochine was placed into a voluntary administration in late March this year after it failed to secure sufficient funding for its Mt Kare project. The funding failure arose when unnamed interested parties to the project withdrew their funding offers.

It was reported earlier that Indochine had cash of A$413, 000 (about K900,000) at the end of December 2015 and had raised $500, 000 (K 1.4 million) in February. However, the company also has a $3.75 million (K10 million) loan which is due at the end of next month.

In an attempt to build sufficient funds, the company had aggressively cut costs, going from a burn rate of more than $1.2 million (K3.3 million) a month in the middle of last year to less than $250, 000 (K680, 000) as reported by MiningNews.com.

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Purum lays claim to Mt Kare mine

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Prospects for Mt Kare mine collapse

INDOCHINE COLLAPSES

INDOCHINE Mining has appointed voluntary administrators after being unable to secure funding for its Mt Kare project in Papua New Guinea. 
The company had been in discussions over a strategic funding agreement for some time, but on Friday the remaining interested party withdrew its funding offer.

As a result, the board of Indochine appointed Martin Jones, Darren Weaver and Benjamin Johnson of Ferrier Hodgson as joint and several administrators.


“The company’s board is disappointed that despite its best efforts, a funding agreement for the Mt Kare project could not be concluded,” Indochine said.

“The directors will continue to work with the company’s administrators to help them achieve the best outcome for all of the company’s stakeholders.”

PCF Capital Group had been engaged over a deal on Mt Kare, while Indochine was also progressing plans to list on London’s AIM.
Indochine shares were suspended from trading on March 17 after the company failed to lodge its half-year accounts.

The company had cash of $A413,000 at the end of December and raised $500,000 in February.
However, it has a $3.75 million loan due at the end of next month.
Indochine had been aggressively cutting costs, going from a burn rate of more than $1.2 million a month in the middle of last year to less than $250,000.

The Mt Kare project, only 15km from Barrick Gold’s massive Porgera mine, has resources of 2.1 million ounces of gold and 18.4Moz silver.

A previous owner of Mt Kare also went into administration in 2008.
Indochine shares will remain suspended.

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Indochine makes breakthrough at Mt Kare in PNG

indochine-logging-drill-core

INDOCHINE logging drill core at Mt Kare in Papua New Guinea. The company signed a “groundbreaking” land agreement with local landholders this week, ahead of a recapitalisation of the company, according to insiders. Photo: Indochine Mining

Global Mining Observer

ASX-listed Indochine Mining is set to announce a financial recapitalisation of the company before the end of the year, Global Mining Observer has learned, after securing a breakthrough land deal with local tribes this week at its Mt Kare gold project in Papua New Guinea.

In a ceremony marked by “singsing” and “pig killing”, Indochine ended a 30-year land ownership dispute with local tribes on Tuesday. The news is seen internally as a “groundbreaking” moment in securing the future of Mt Kare, a bonanza grade gold asset in the politically volatile world of Papua New Guinea.

In conjunction with an equity raising, the company is working on a debt-to-equity swap with its secured creditor, according to sources involved, pumping money into the company, removing its debt overhang and kickstarting mine construction.

Indochine announced a boardroom overhaul in July, thought to have had the backing of underground mine contractor Brian Rodan, the company’s largest shareholder.

Valued at A$23m ($20m), or A$1.9c per share, the market appears to be pricing the company for liquidation, but in response to questions this week, interim chairman and restructure specialist Dermott McVeigh said he is “extremely confident that we’ll be here in not just 18 months, but that we will develop this project.”

The company has had expressions of interest for the full acquisition of the asset, according to McVeigh, but Indochine is “exactly the vehicle” to develop Mt Kare, he said. “The main reason I say that is because of the approach the company has taken to our relationship with landowners. On the ground in PNG, it makes an enormous difference.”

Mt Kare sits along trend from Barrick Gold’s giant Porgera mine, yielding 17m gold ounces since opening in 1990. The mine produced 482,000 ounces last year, but Barrick recently downgraded its mine life from 13 to 9 years and is trying to offload the asset, according to sources.

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Indochine share price tumbles after Mt Kare landowners declare their opposition

The share price of Australian mining company Indochine Mining has tumbled since landowners from its flagship Mt Kare project declared their opposition to the company on this blog two weeks ago: Mt Kare landowners call on government to cancel exploration licence.

Landowners say studies done by Indochine do not accurately provide for the cultural and traditional land owners of Mt Kare and they have asked the government to not to renew the company’s exploration licences

graph showing share price fall

IDC share value has tumbled since landowners voiced their opposition

The Indochine share price has dropped over 20% from 3.4 cents in the days before the story was published to just 2.7 cents today. Even more dramatic, shares in the company have lost almost 30% of their value from their August high of 3.8 cents one week before the story broke.

graph showing share price over 12 months

Current Indochine share values are a far cry from the heady highs of March. Since then the shares have crashed, loosing more than 65% of their 7.7 cent value.

Indochine Mining says it is engaged in the exploration and development of gold, silver, and copper mineral properties in Papua New Guinea and Cambodia. Its flagship property is the Mt Kare gold/silver project. The Australian Stock Exchange website says the company is based in Sydney, Australia and its two key executives between them earn over $700,000 a year.

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