Marengo eyes China’s rising copper needs

MARENGO Mining, developers of Yandera copper-molybdenum mine in Madang province, is keeping a close watch on China’s predicted demand for copper and of the price of the red metal itself, chairman John Horan told the company’s AGM in Perth, Western Australia, last week.
“China is an important market for us.
“Our immediate imperative is to develop the Yandera project to production stage so that Marengo can take advantage of market opportunities both in the near term, and for the long-term life of the project,” he told shareholders.
Horan said Perth-based Marengo Mining’s board of directors was sharpening its focus to deal with the challenges that would lie ahead.
“I believe we have an extraordinarily capable board with directors from Australia, Canada, Papua New Guinea and Germany, who are fully committed to the development of what is one of the largest undeveloped copper porphyries in the Asia Pacific region.”
Marengo Mining Ltd has certainly maintained the momentum of last year at both operational and corporate levels, against a backdrop of global economic uncertainty, stockmarket volatility and fluctuating commodity prices.
Key developments for the miner in the past 12 months included a strategic alliance with a major Chinese engineering and construction group; the continuing confidence and support of international investors; the continuing progress on the flagship Yandera project; the careful maintenance and building of good relationships with the PNG government, the people of the local communities; and the wealth of talent, drive and commitment of all who are working to establish a sound future for the company.
Horan said the alliance with China Nonferrous Metal Industry’s Foreign Engineering and Construction Co. Ltd (NFC), one of China’s largest manufacturing and engineering groups, was a key component in Marengo’s drive to bring to successful completion the Yandera project definitive feasibility study, which he said was a major undertaking.
NFC is set to become the principal contractor for the construction of the Yandera project under an engineering, procurement and construction contract, as well as facilitating financing of at least 70% of the project development costs with Chinese banks.
Horan told the AGM that the progress and importance of the Yandera project had been recognised by the government as another significant development of the long-term resource base.
This recognition was evidenced in the government’s recent entering into the Yandera project investment and co-operation agreement through the state-owned Petromin, which would lead indirectly to the government acquiring a 30% stake in the project.