Frieda River mine boost expected

The National Business

DEVELOPERS PanAust recently announced a new nation-building development pathway for the Frieda River Project in West Sepik.
The new approach focuses on the development of shared-use infrastructure that will support, and in turn be supported by, the mining operation.
Under this inclusive development model, the Frieda River copper-gold project (FRCGP) will be a core component of a transformative nation-building opportunity – the Sepik Development Project.
According to PanAust, the major player in the project, the Sepik Development Project would deliver a world-class mine and a long-life hydro-electric power facility.
These two commercial projects will be enabled by a third-party development of an international maritime port, public roads, a regional airport and telecommunications services
to establish a new economic corridor in an underdeveloped region of PNG.
The Sepik Development Project will improve transport and connectivity, facilitate delivery of services to remote communities, and boost domestic and international trade and investment.
Foreign Affairs and Trade Minister Rimbink Pato had said in April this year that “nation-building projects will enhance Apec economic partnerships including the Frieda River gold and copper mine project (and) will also boost bilateral and regional trade and investment that will directly change the lives of our people forever”.
The 2018 feasibility study and accompanying economic impact assessment identified several significant enhancements and outcomes arising from the Sepik Development Project:

  • An estimated increase in real national gross domestic product (GDP) by a cumulative value of K90 billion (US$29bil) over 40 years;
  • An estimated initial capital investment of over K26.5 billion (US$8bil);
  • Total tax, royalty and production levy revenue to the State and landowners of K29 billion;
  • A pathway to a 45-year mine life using the facilities to be established for the initial development; and
  • Average annual production rates of 175,000 tonnes of copper and 230,000 ounces of gold metal.

PanAust managing director Dr Fred Hess noted the significance of the feasibility study outcomes.
“The updated feasibility study demonstrates the attractiveness of the world-class, long-life mine development and the potential it holds as a catalyst for broader socio-economic development,” he said.
“Our approach builds upon the findings of the 2016 feasibility study, new information and feedback received from stakeholders during our consultative processes.
“The incorporation of a shared-use infrastructure model has driven substantial improvements to the FRCGP economics and positive economic impacts for PNG.
“The model provides for the development of infrastructure for general use including a hydroelectric power facility, ocean port, regional road, airport, power grid and telecommunications.
“By incorporating a shared-use infrastructure model that aligns with the development goals of PNG, the Sepik Development Project
represents a transformative nation-building opportunity for the country.”