Tag Archives: PanAust

Pundari discusses impact of Frieda mine

Sssh – don’t mention the Chinese!

Funny how the media can report so many ‘facts’ about the proposed Frieda river mine, including, supposedly its ownership, but leave out the fact that it is the Chinese State owned Guangdong Rising Assets Management Co. Ltd (GRAM) that owns PanAust, the company developing the mine…

The National aka The Loggers Times | December 21, 2017

THE Conservation and Environment Protection Authority (CEPA) has received a notification of intention by PanAust to develop the Frieda gold mine as required under the Environment Act 2000.

As part of the process to obtain an Environment Permit to develop the mine, the company has met the initial requirements of the legal process by submitting to the Director for Environment an Environment Inception Report.

Information CEPA has to date on the proposed gold mine is contained in the Environment inception Report.

Based on the EIR the following information is known by CEPA:

Copper mineralisation was first identified at Freida River in 1966/67, with the first exploration permit (termed a Prospecting Authority) held by Mount Isa Mines Ltd.
Since that time, the area has had a long history of exploration activities undertaken by numerous companies, with exploration permits held from 1967 to the present day.
The project is located within the Sepik River catchment and would comprise development of the Horse-Ivaal-Trukai, Ekwai and Koki (HITEK) copper-gold deposit in Telefomin district, West Sepik.
The project lies some 200km south of the northern coastline of mainland PNG and 75km east of the border with the West Papuan province of Indonesia.
The project would be developed by FRL, a company owned by copper and gold producer PanAust Limited on behalf of the joint venture between FRL and Highlands Frieda Limited (HFL), a wholly-owned subsidiary of Highlands Pacific Limited (HPL).
These deposits contain significant gold and copper with an estimated mine life of 17 years.
The main activities associated with the development of the project would include:

  • A sire access road from the Sepik River to the mine site;
  • mining will be done via an open pit mine;
  • placing waste rock and tailings into an integrated storage facility;
  • processing ore in a conventional concentrator at a site adjacent to the open pit;
  • copper-gold concentrate transportation by pipeline to a Sepik River port then barging along the Sepik River and northern coast of PNG to the proposed concentrate export facility located at Cape Moem near Wewak;
  • power generation during operations using an intermediate fuel oil (IFO) power station then augmented by a hydroelectric power station;
  • an airport constructed at Kaugumi Creek to transport personnel to and from the site;
  • the viability of the Project reflects a combination of economic, engineering environmental and social consideration that have been assessed and presented in FRL’s proposal for development; and,
  • The proponent for the project is FRL as manager of the Freida River Joint Venture and on behalf of joint venture participants FRL and HFL.
  • The participants and their equity in the project are: PanAust Ltd (80 per cent), Highlands Freida Limited (20 per cent).

Pan Aust Limited is a copper and gold producer in Southeast Asia and has a portfolio of organic growth projects in Laos and Chile.

Processing method
The mine processing method will involve conventional crushing grinding and flotation circuit.
Mine tailings and waste rock will be contained within an engineered Integrated Storage Facility (ISF).
The mine will also have quarries to provide materials for the construction of dams, roads, water diversion bunds, infrastructure pads and the construction of the ISF embankment.

Power supply
During the construction phase, power generation will be provided by diesel generators.
Following construction phase and during operations, a portion of the power will be supported by hydroelectric power.

Raw water requirement & supply
The Nena River will supply all raw water requirements for the mine.

Main access road
A main access road will connect the Sepik River port, Kaugumi Creek airport, Freida River airstrip, IFO power station, ISF, process plant, mine infrastructure area and accommodation camps.

River ports
Construction: Freida River port and Sepik River port will accommodate transport of construction materials to the mine site.
The Wario River port, adjacent to Nekiel, will provide access for construction of the main access roads.
Operations: The Sepik River port will be used for import of equipment and consumables and export of concentrate. A tugboat refuelling facility will be located at Pagwi and a mooring point will be located upstream of Yambon Gate.

Logistics
Mine equipment and consumable will be received at the Port of Wewak where it will be transferred to barges, transported to the Sepik River and then trucked to site. Concentrate will be transported in barges along the Sepik River and the Bismark coast to a new concentrate export facility at Cape Moem.
Accommodation construction: Main (mine camp) – accommodation for 1500 personnel and various other accommodation facilities at different locations.
Construction: Peak construction workforce of 3720 personnel.
Operations: About 2000 personnel with a further 1000 ISF contractors in Years 1 to 9 ongoing construction campaigns for the ISF.

Main airport
Existing Freida River airstrip to start followed by a new airport to be constructed at Kaugumi Creek.

Tailings management
Integrated Storage Facility (ISF) will be constructed in the lower Nena River catchment about 4.5km upstream of its confluence with the Ok Binai.
Along with the large open-pit void, it will be the most prominent feature of the mine.
The primary design objective of the ISF is to safely store tailings and waste produced by the mining and milling operation.
This design has been subject to international expert peer review by Pan Aust’s ITGRP, which has been established to access the adequacy of the design of the ISF and the underlying studies informing this design, and to provide recommendations on additional studies or evaluations to address areas of uncertainty.

Environment regulatory process
The environment regulatory requirements for satisfying the environment impact assessment process as contained in the Environment Act 2000 is as follows:

  • Submission of EIR;
  • approval of EIR;
  • conduct of environment impact assessment;
  • submission of EIS;
  • stakeholder consultation on EIS;
  • preparation of submission to Environment Council;
  • Environment Council recommendation to Minister;
  • minister’s approval-in-principle; and,
  • Director of Environment issues Environment Permit.

The above process can take up nine months to complete and is also dependent on adequacy to technical information submitted.
CEPA will also conduct its independent peer review on critical aspects of the project submissions will then be presented to the Environment Council for deliberation and recommendation to the minister to issue an AIP.

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Mining Minister Tuke meets Einstein’s definition of insanity

Panguna, Porgera, Ok Tedi, Tolukuma all tell the same story – large-scale mining is a disaster for local communities and the environment.

And neither Frieda or Wafi-Golpu have yet come up with a credible plan for managing their toxic tailings – but heck, lets go ahead anyway… 

Govt adamant to get two new mines operating: Tuke

The National aka The Loggers Times | November 22, 2017

THE Government is adamant to get two new mines operating in this term of Parliament, Mining Minister Johnson Tuke, pictured, says.
Tuke, who is also the Kainantu MP said in Lae after returning from a familiarisation visit to the Hidden Valley mine and Wafi-Golpu exploration site in Bulolo, Morobe.
Tuke earlier visited the Porgera gold mine, K92 mine, Frieda River exploration site and the Ramu nickel mine.
He said under the O’Neill-Abel government’s 100-day plan, ministers holding economic portfolios were tasked to ensure their respective departments aligned their operations towards producing revenue for the Government and bail the country out from economic down turn.
“This government is doing the ground work to have at least two mines operating,” Tuke said.
“This government is fully committed.
“In this term of Parliament we will initiate something.
“The developers and landowners are also serious in having the mines off the ground.”
Tuke said the companies doing exploration at the Frieda and Wafi-Golpu sites have already submitted their proposals to dig for minerals. It was for the relevant government agencies to study their proposals and advise the National Executive Council to grant the miners special mining leases.
“Frieda has conducted exploration for the last 40 years or more,” he said.
“Last week, I was at Frieda and talked to the people there. Their response was positive.
“My visit there was to identify issues with the people and the company, so that I can better advice the Government so that it can make well informed decisions.
“That is the case with Wafi too.”

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Australian govt using ‘aid’ money to promote their mining industry

Bruce Davis, left, and Fred Hess signing a memorandum of understanding at Frieda River last week. Looking on are East Sepik Province Governor Allan Bird, Ambunti-Drekkir MP Johnson Wapunai, Vice Mines Minister Bari Palme, women’s mentor, Fredah Wantum along with women from Paupe village and PanAust employees

Approval processes for any Frieda river mine have not yet been completed – but the Australian government is already spending ‘aid’ money to help ensure the mine does go ahead.

PANAUST, the beneficiary of this ‘aid’ subsidy, is, of course, an Australian company…

Long-term plan for women at Frieda River

PANAUST and the Australian government are working together to empower women through the Frieda River copper-gold project under a new initiative called the Papua New Guinean Women in Mining Project.

In terms of an agreement signed at Frieda River last week, the partners say a three-year work program will strengthen the participation of women in the development forum process and ensure women receive lasting benefits over the life of the mine and beyond.

“The project will provide a mentor to work with women from the Frieda River area to prepare them for participation in the development forum and help organise their governance and representative structures. Selected Frieda River employees will become women’s empowerment and safety champions,” PanAust said.

The partners will also work to build literacy skills, and promote cooperative approaches to decision-making, workloads and budgeting, leadership and coalition building.

At the signing PanAust managing director Fred Hess emphasised the role mining could play in supporting women.

“Mining, perhaps more than any other industry, has the ability to empower women in remote communities. At PanAust, we consider it our responsibility to encourage that development. At our operations in Laos, we have provided pathways for women to acquire trades, become leaders in the company and start small businesses. Our partnership with the Australian government will help us emulate this success in Papua New Guinea,” Hess said.

Australian high commissioner Bruce Davis said Australia was taking part to strengthen women’s participation in resource development negotiations.

“We will help build literacy and financial skills, as well as support women to take on leadership and decision-making roles in the development negotiations, to ensure they directly benefit from mining activities in the region,” Davis said.

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Frieda river mining company in corruption investigation in China

Guangdong Rising Assets Management is under investigation for a series of bad investments including the purchase of PanAust and the Frieda river mining rights. Four people are already being prosecuted for corruption and now the former Chairman is in the spotlight over losses of more than $1 billion

Chinese probe big mine loss

Rowan Callick | The Australian | October 16, 2017

The former chairman of a Chinese state-owned enterprise has been handed over to prosecutors for investigation after the company’s investments in several Australian mining ventures lost more than $1 billion.

Li Jinming, who chaired Guangdong Rising Assets Management, which is owned by Guangdong province, was earlier expelled from the Communist Party following an investigation that began in 2014 over losses that the disciplinary inspection team described as “dreadful”.

The company was established 17 years ago with $2bn capital, the South China Morning Post reported, and it began investing in Australia after the Global Financial Crisis pushed down asset and commodity prices.

It acquired, through different subsidiaries, lead-zinc producer Perilya for $45.5 million, coal producer Caledon Resources for $500m, copper and gold company PanAust — with a massive prospect awaiting commitment in Papua New Guinea at Frieda River — for $180m, and rare earths producer Northern Minerals for $60m,

It also paid $15m for a large stake in gold and base metal explorer Hawthorn Resources.

Leading Chinese financial website Caixin reported that most of these deals had since made losses, with calls on further capital from GRAM.

Li Zezhong, who worked for GRAM for 11 years, ultimately as president, was then appointed mayor of Zhuhai, a thrusting city of 1.5 million on the western side of the Pearl River Delta, just north of Macau.

It was his successor at GRAM who urged a deepening of the investigation into the company’s management.

Last month it was announced that Li Zezhong was being investigated for “serious violations of party discipline,” believed to relate to his time at GRAM.

Four colleagues from his time at the company are already being prosecuted for corruption.

Caixin has reported that investigators are also seeking to interview Liu Facai, now living in Australia. He chaired the committee responsible for all state assets in Guangdong province when he led a team to Australia 11 years ago to explore investments in mineral projects.

Caixin said that he and his son, who was already living in Australia, introduced GRAM to firms in which the company went on to invest.

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New governor signals approval for Frieda river mine

East Sepik’s new governor, Allan Bird, has signalled his approval for the planned Frieda river mine – all he wants is a government assurance ‘everything will be fine’ – SURELY HE IS NOT THAT STUPID?

Possible mining impact on Sepik river a concern

By Dorothy Mark | The National aka The Loggers Times | August 30, 2017

EAST Sepik Governor Allan Bird has warned that the start of the Frieda gold and copper mine on the border with West Sepik will depend on an assurance by the government that the river will not be polluted.

Bird said the people depended on the East Sepik River daily and did not want it polluted by the activities of the Frieda gold and copper mines.

He was responding to the concern raised by Madang provincial mines director John Bivi on the operation of the Wafi gold mine in Morobe, Marengo in Madang and Frieda in East Sepik.

Bivi requested Bird to highlight this problem in parliament if there is debate on the three mines to begin operating quickly.

Bird said he would not comment on Wafi and Marengo but he would see that the people of East Sepik get the maximum benefit from the Frieda mine.

“We don’t  want what happened at OK Tedi to happen to us. So we will be very careful with this one,” Bird said.

Ramu development foundation director Dr Boga Figa asked Bird to assist in any way possible to have a feasibility study carried out to construct a road from  Banu Bridge to Forogo which could link to East Sepik.

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Frieda Awaits Approvals

New Deputy Prime Minister, Charles Abel, says PNG needs to reduce its reliance on large-scale resource extraction, so will the government have the guts to say no to the Frieda river mine?

Post Courier | August 4, 2017

The country’s next “worldclass” [sic] gold mine at Frieda River in East Sepik province is only awaiting formal permit approvals before securing a special mining lease (SML) to begin construction.
Highlands Pacific Ltd who owns 20 percent of PanAust in its June quarter report, stated that permitting processes were the focus activity for the project.
As a result, project manager, PanAust continues to liaise with Mineral Resources Authority to progress applications for a SML while at the same time explore refinements to the project design to improve development economics.
The report said the project was only waiting for the national election to be complete so that relevant government authorities can provide guidance on the permitting process.
PanAust is also investigating a larger hydroelectric facility that could deliver additional power potential.
Alternatives are also being considered for shared-use infrastructure, development of the Nena deposit and site layout.
Meanwhile, Highlands Pacific Ltd and PanAust have commenced arbitration proceedings to resolve a dispute regarding funding of project expenditure.
The parties are in dispute regarding their obligations under the joint venture agreement, including iwhether HPL is obliged to commence funding of project expenditures.
HPL previously has sought to resolve the dispute through mediation, however the parties have now agreed to seek a final and binding settlement before a sole arbitrator.
It is expected that the arbitration decision will be received before the end of the year.

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Where to dump Frieda’s raw waste just a ‘technical issue’: Minister

Frieda River mine set to start operations 
[the Post Courier loves a misleading headline!]

Post Courier | March 09, 2017

The giant Frieda River mine in West Sepik is now 60 percent ready of becoming a reality with the National Government waiting to issue the mining license for the project to start after few technical issues are sorted out, says Aitape Lumi MP and Minister for Treasury Patrick Pruaitch.

“Frieda River is 60 per cent reality now, we are ready to issue the license. We just need to work through with the technical people to on how they will dump the raw waste.”

“The company has put an application to convert mine waste into power generation system , but the State does not have the capacity so it is doing its best to hire people to give the best advice on how we can look at that and we can give the okay for that 40 per cent to be completed, for 100 per cent to give the mining license for project to start,” Mr Pruaitch said.

Mr Pruaitch said this at the opening of the first ever Frieda Mine Landowners Forum underway in Port Moresby’s Crowne Plaza Hotel that started yesterday and will end today.

Mr Pruaitch urged the people to work together and put together their benefits package for the National Government to consider during the project negotiation.

” Let us not send mix signals, it will give opportunity for company to go divide a few LLGs and MP’s to start the mine with the least cost possible so we can bring in impacted development for that region,

“I believe that is a big project that will transform Sandaun Province and Sepik region including Madang. This project will spread benefits across the region.”

YUP, JUST LIKE OK TEDI HAS TRANSFORMED WESTERN PROVINCE; LIHIR HAS TRANSFORMED NEW IRELAND; PORGERA HAS TRANSFORMED ENGA; AND THE LNG HAS TRANSFORMED HELA PROVINCE

HOW ARE OUR POLITICIANS STILL ABLE TO SPOUT THIS NONSENSE AND NOT GET LOCKED UP IN LALOKI PSYCHIATRIC HOSPITAL?

OR MAYBE WE NEED TO CHANGE THE LAW TO MAKE PEDDLING FALSE CLAIMS AND PRAYING ON PEOPLES DESPERATION BECAUSE THEIR GOVT HAS FAILED THEM A CRIMINAL OFFENCE?

“I want initial support from landowners because if we don’t have a project, we will not talk about benefits. We have to have a project, we have to get a leg in and another one in than we can be able to negotiate for the benefits. If we are not supporting the project than we can be standing here as leaders driving a lost cost, we must have a project, we must have shareholding understanding with impacted landowners, we must have understanding with the Telefomin district, we must have that understanding with the Telefomin LLG and sandaun Provincial Government.”

“I want Frieda mine which is going to be the first mining for the next government to use LNG precedent to allocate these benefits.”

Landowners to discuss benefits amongst others

FRIEDA Mine landowners have come together to discuss issues including benefits for negotiations with the National Government and developer PanAust when Frieda Mine project comes into development.

Member for Telefomin Solan Mirisim who initiated the first ever landowner forum to discuss issues surrounding the Frieda River Project, the Political Leaders from the West Sepik Province. MRA and stake holders emphasised on how best they can work hand in hand and support the Company, landowners and the State to kick start the Project once the SM application is granted.

“I stand up here representing the views, the cries and the excitement of over 50,000 people from Telefomin District, including people from ward 21, particularly the seven impact Villages within the vicinity of Special Mine Lease area.”

Mr Mirisim said Telefomin is the host District of the Frieda River Project and is one of the most remotest districts in the country that has no road link, only mode of transport is by Air and the four LLG are all accessible by third level airline and it is very expensive District to deliver goods and services to our people on time.

“Frieda River Project is the only Project in this country that has taken over 40 years of exploration after exploration, I must take this time to thank many exploration companies who have worked on the Frieda River Project for many years to this time, it is long time awaiting for our People in Frieda River and Telefomin District.”

“I would like to thank the Highlands Pacific and the PanAust for taking the project closer to fruition. One final step to finish and we will have a world class Mine that will be mined and developed in our District which will no doubt create prime opportunity to impact and transform the lives of our people through employment, training, economic empowerment, contracts and all kinds.

“We want to see a Pathway that will improve our way of life, a pathway that will change the areas of Infrastructure, a pathway that will see a society transformed with Improved Social and Health Indicators.

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