Govt confident, committed

 THE Government has assured of its commitment towards the joint venture partners for the Star Mountains project in Western.

Mining Minister Byron Chan welcomed Highlands Pacific and Anglo American to explore for copper and gold in Western.

“PNG is a proven exploration and mining jurisdiction and your entry into the country is evidence of investor confidence,” Chan said during a dinner on Monday hosted for the venture executives in Port Moresby.  

“We (State) are confident that with your combined resources and our commitment, you will be in an enviable position to develop your flagship exploration project in PNG.”

Anglo delegation head Andre van den Berg said Anglo was looking forward to committing itself in doing business in PNG through its partnership with Highlands Pacific.

Information obtained by the Mineral Resources Authority revealed that Anglo would pay Highlands Pacific an initial US$10 million (K26.35m) cash payment in two equal tranches – one now that the agreement was signed and the second in 12 months.

Anglo must spend US$25 million (K65.87m) on exploration over four years and delineate an inferred resource of 3 million tonnes of contained copper equivalent within five years to earn a 51 per cent interest. By funding and completing a bankable feasibility study, Anglo can move to an 80 per cent stake within 15 years of the initial agreement.

Anglo will provide Highlands with up to US$150 million (K395.26m) in project development funding as a deferred free-carry following completion of the BFS.

Highlands Pacific managing director John Gooding had said the execution of the agreements presented a major step forward for the company.

He said Anglo-American is a highly reputable international company that brings with it great exploration and development experience to the Star Mountains project. 

“Together we can move forward with a defined exploration programme that will test size and grade of these exciting targets,” Gooding said.