Over K40bn new investments anticipated

PNG’s mining industry is currently processing more than K40 billion worth of new capital investments on mining projects.

On top of that, it is dealing with about K10 billion in investments in sustaining capital expenditure on existing mines.

When presenting at the 17th PNG Resources and Energy Investment Conference in Sydney, Mining Minister, Sir Ano Pala, told attendees that two prominent projects worth over US$11 billion (K41bn) of potential new capital investments are:

  • US$ 5.38 billion (K19.7bn) Wafi-Golpu copper-gold project comprising US$2.8 billion (K10.4bn) capital expenditure to commercial production; and
  • US$ 6 billion (K22bn) Frieda River copper-gold project.

“The permitting of the development of the US$ 5.4 billion Wafi-Golpu project is at advanced stages, pending the conclusion of the Mining Development Contract, (MDC) negotiations,” Sir Ano said.

“Negotiations for the Community Development Agreement (CDA) had commenced.

“We expect permitting of the Special Mining Lease by the first quarter of 2024. Construction period may take up to five years before commissioning.”

For the open-cut Frieda River copper-gold project, in the Sandaun and East Sepik provinces, Sir Ano said the permitting process will receive full attention by the State, also in the first quarter of 2024 (Q1/2024).

“In recent times, the project has attracted keen interest from many reputable investment communities,” he said.

“We expect permitting of Frieda River project by quarter three (3) of 2024.”

Author: 
Loop Author