Emery eyes more drilling this year

Business, Normal

The National, Monday February 3rd, 2014


CANADIAN company Marengo Mining will finalise its waste disposal approach and feasibility study to trigger financing of its Yandera project in Madang, chief executive Les Emery said. 

He said the total development cost of the copper-gold molybdenum project was in the vicinity of US$2.2 billion (K5.3 billion) and in-ground metal value of US$15 billion (K36 billion).

The project had long targeted production of about 80,000-100,000 tonnes per annum of copper, plus 15,000 tonnes of moly in a concentrate form over a mine life of 20 years, with first production in 2016.

Earlier statements by the company indicated that it would delay construction for another 12 months amid unresolved tailings and power supply plans.

Marengo initially held deep sea tailings placement plans for the project but by last year it preferred a tailings dam approach. 

In May last year, the company also announced that it would identify a new cost-competitive power source for the project after its preferred partner withdrew from proposed arrangements.

Emery said “We (Marengo) are now 95% advanced on the project. 

“We have two options for waste management and several options for power which we will be presenting to government and stakeholders to decide.

“Our job at the moment is finalising the feasibility study so that we can trigger financing section of the project. 

“The project is very much supported by international shareholders, including its strategic alliance with China’s largest engineering and copper smelting groups, China Nonferrous Foreign Engineering Company (NFC). 

“China has not lost any appetite for PNG’s copper.

“A project of Yandera’s size can bring in US$700 million (K1.7 billion) in revenue from copper per year,” Emery said.