PERTH (miningweekly.com) – The Papua New Guinea government is committed to work with the mining industry to advance key resources projects, including the Frieda River copper/gold project and the Wafi-Golpu gold project, Prime Minister Peter O’Neill said this week.
ASX-listed Highlands Pacific and Guangdong Rising Asset Management are developing the Frieda River project, for which a feasibility study is expected before the end of 2015.
The project concept to date has been based on an average processing rate of 30-million tonnes a year, producing on average 125 000 t/y of copper in concentrate and 200 000 oz/y of gold in concentrate over a 20-year mine-life.
Gold miners Harmony Gold and Newcrest Mining are jointly developing the Wafi-Golpu project.
The two companies will spend about $2.3-billion to develop the Golpu deposit, which contains about 20-million ounces of gold and 9.4-million tonnes of copper.
First production has been targeted for 2020.
Speaking at the Papua New Guinea Mining and Petroleum Conference, O’Neill said these resource projects were important to both the industry and the country.
“I can tell you, today - the government remains committed to working with you in progressing these projects. With the government's continued investment in the key growth sectors, the future of our economy is bright.”
The Prime Minister noted that the issue of taxation could be an area of anxiety for foreign investment in the sector, but added that government had no intention of springing any surprises on investors.
“We recently received the report of the Selected Tax Review Committee. It is our intention to have wide-ranging consultation on the recommendations, and on taxation and revenue generally, with the community in 2016.
“We received this report very late in the year, in fact a week before the Budget, and so none of those recommendations are included. This engagement with the resources sector, with business, and with investors is vital. I can assure that our government is committed to this.”
Meanwhile, O’Neill said that the Papua New Guinea government would also offer incentives to gas projects, which included downstream processing, and the development of affordable energy supply to the domestic market.
“We have to focus beyond exporting raw product and expand focus to the downstream processing of our resources,” O’Neill said.
“To achieve these ends, the government's own corporations will be required to work closely with the private sector in maximising our opportunities. I have been greatly encouraged by the commitment to our oil and gas sector partners, particularly companies such as Total, ExxonMobil, General Electric, Newcrest and others in the industry.
“We are working with them, and with major existing players, on approving the next liquefied natural gas project, and wider communities can benefit.”