PNG’S KEY INDUSTRIAL SECTORS
Mining operations Seven mines currently provide the majority of PNG’s mineral exports:
PNG MINING PROJECTS (June 2011) No.
PROJECT
PRODUCTION
COMMENTS CURRENT MINES
1
Ok Tedi (Western Province)
1984 to 2013 (?2020) The Ok Tedi copper-gold mine, 100% PNG-owned, is scheduled to cease operation by 2013 but a feasibility study looking at extension for another seven years to 2020 is currently under way.
2
Porgera (Enga Province)
1984 to 2020 Barrick Gold’s Porgera gold mine began production in 1984 and is projected to cease around 2020.
3
Lihir (New Ireland Province)
1997 to 2030 Gold mining on Lihir Island is scheduled to continue until 2021 at the current rates, with processing of lower grade stockpiles to continue beyond 2030. By 2012, the mine is expected to be producing over one million ounces per annum. Newcrest purchased Lihir Gold in 2010.
4
Tolukuma (Central Province)
1995 to ??
Production began in 1995. Expected mine life unknown. Owner: Petromin.
5
Kainantu (Eastern Highlands Province)
2006 to 2008
The mine closed in late 2010, and further exploration is being undertaken.
6
Simberi (New Ireland Province)
2008 to 2018+ Production began in 2008 with an expected mine life of 10 years. Extensive drilling is underway with a view to increasing production to 200,000 ounces from a combined oxide/sulphide resource in 2012. Current production is 75,000–80,000 ounces a year.
7
Sinivit (East New Britain Province)
2007 to 2011+ Production began in 2007. Has approximately one year of life remaining.
1
Hidden Valley (Morobe Province)
2009 to 2019+ The Harmony Gold/Newcrest Mining joint venture gold mine commenced production in June 2009. Mine life: 10 years plus.
2
Ramu (Madang Province)
2011 to 2040+ The Ramu nickel-cobalt project is in commissioning phase with full production expected at the end of 2011. Designed to produce 31,500 tonnes of nickel and 3300 tonnes of cobalt per annum over a 20-year mine life, with potential for a further 15 to 20 years.
NEW MINES
ADVANCED PROSPECTS
1
Solwara 1 (Bismarck Sea)
2013 Nautilus Minerals’ Solwara 1 deep sea mining project was licensed in early 2011 and production could begin as early as 2013.
2
Frieda River (West Sepik Province)
2016 The Xstrata-led Frieda River Project is projected to start producing in 2016. It is one of the top 10 emerging copper–gold projects in the world. The resource estimate has recently been revised upwards by 26% to over one billion tonnes at 0.53% Cu. It has the potential to be developed as a low cost, large open cut mine producing 200,000 tonnes of copper and 240,000 ounces of gold per annum for nearly 30 years.
3
Yandera (Madang Province)
Feasibility stage Discovered in the 1950s, Marengo Mining’s project has an indicated resource of 315 million tonnes at 0.48% Cu equivalent (copper and molybdenum), plus and inferred resource of 352 million tonnes at 0.43% Cu equivalent. Feasibility study under way based on 25 million tonnes per annum throughput, with production schedueld to start in 2014.
4
Wafi/Golpu (Morobe Province)
Pre-feasibiity Discovered in 1979, Wafi has a gold resource of 51.7 million tonnes at 1.88 g/t and Golpu a resource of 81.5 million tonnes at 1.08% copper and 35.4 million tonnes at 0.61 g/t. A joint venture between Harmony Gold and Newcrest Mining.
5
Mt Kare (Enga Province)
Pre-feasibility Discovered in 1988. Contains a resource of 743,000 ounces at 5.04 g/t gold and 25.37 g/t silver. Project bought by Indochine Mining Limited in 2011.
6
Woodlark (Milne Bay Province)
Pre-feasibility The Kula Gold’s Woodlark Island Project is expected to have its first production by 2013. Resource currently stands at 1.4 million ounces.
Source: PNG Chamber of Mines & Petroleum
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THE PNG INVESTORS’ MANUAL - SECOND EDITION