Anglo gives up PNG venture

Anglo American plc has advised Highlands Pacific that it intends to withdraw from the Star Mountains exploration joint venture in Western.
The decision follows a review of its global exploration portfolio.
Highlands Pacific, in a statement yesterday, said Anglo American had given notice that it would withdraw from the project in 30 days.
In accordance with the terms of the joint venture, it will relinquish its vested 15 per cent holding in the project, leaving Highlands with a 100 per cent interest. Highlands managing director Craig Lennon said that while he was disappointed that Anglo American would not be continuing with the joint venture, its involvement over the past three years had greatly enhanced the understanding of the geology of the tenements and substantially increased the value of the project.
“We will now be free to introduce a new partner to continue exploration efforts,” he said.
“Drilling to date has confirmed extensive mineralisation through the various prospects that have been tested to date.
“We remain confident that further exploration will identify the source and structure of the mineralisation sufficiently to support a significant development project.”
Anglo American and Highlands established the joint venture in February 2015.
Since then Anglo American has funded an extensive exploration programme including two diamond drilling campaigns.
Anglo American has spent a total of US$38 million (K122mil) on the project, including a US$10 million (K32mil) payment to Highlands Pacific for its initial entry into the project.
This comes on top of significant funding by various project participants since the initial discovery by Kennecott in the late 1960s when they found Ok Tedi’s Mt Fubilan deposit.
Highlands Pacific is a PNG-incorporated and registered mining and exploration company listed on the Australian Securities Exchange and Port Moresby stock exchange.
Its major assets are interests in the producing Ramu nickel cobalt mine and the Frieda River copper gold project, with exploration in progress in the Star Mountains.