The PNG Chamber of Mines and Petroleum has welcomed the recent lodgement and registration of a Special Mining Lease (SML) application for the Frieda River Copper-Gold Project.
The lodgement of the application satisfies a ministerial condition placed on the key Exploration Licence (EL58) that an application for an SML in respect of the Frieda River Mining Project be made on or before 30 June 2016.
The Frieda River Project represents the next generation of mining operations in Papua New Guinea and if developed, has the potential to make a strong contribution to the national economy through the development of major shared-use infrastructure.
PNG Chamber of Mines and Petroleum executive director Greg Anderson noted the importance of the SML application.
“This is a significant milestone for the long-awaited Frieda River Project and, while there is much work to do before the Project can be developed, the efforts of the proponent PanAust supported by joint venture partner Highlands Pacific are to be applauded,” said Anderson.
The SML application comes at a challenging time for the industry, he noted.
“The industry is enduring challenging times at present, with depressed global commodity prices heavily impacting both exploration and mining operations in Papua New Guinea.
“This has been magnified by uncertainty around mooted changes to the Mining Act. Before a positive final investment decision can be made, the Frieda River Project will require an improved metals price outlook and strong support from the Government of Papua New Guinea, including through ensuring legal and regulatory certainty,” Anderson said.
The mining sector has long been an important source of economic growth and development in Papua New Guinea and the Chamber of Mines and Petroleum seeks to ensure it remains a source of growth for the country into the future.
(Picture: Mining technology)