Mineral exploration dips

THERE has been a drastic decline in mineral exploration, especially in the grassroots exploration sector, according to the PNG Chamber of Mines and Petroleum.
Chamber president Gerea Aopi said exploration generally took a very long time, and when exploration activities were constrained or reduced, “it sets off a string of events, often not felt in the near term, but can dangerously threaten the sustainability of the mining sector”.
“A decline in exploration impacts many rural Papua New Guineans, through the loss of direct employment, loss of business for small businesses owners and suppliers that provide goods and services to support these exploration projects,” he said at the annual  PNG Chamber of Mines and Petroleum investment conference in Sydney, Australia yesterday.
The theme of the conference is “delivering on growth opportunities”.
The number of delegates is just over 1000 from 16 countries.
Aopi said in Oil Search’s estimate, only 40 per cent of Papua New Guinea’s full gas and oil potential had been discovered to date.
About 15 per cent of that is being, or has been produced, 25 per cent of it is discovered but not yet commercialized.
And the other 60 per cent is to still be found.
“So where do they look? They will never know where to find it unless they are able to acquire the required data: whether it is through field mapping and sampling, gravity, magnetic or seismic data acquisition, or the drilling of stratigraphic or exploration wells,” Aopi said.
“All this requires investment. Lots of investment.
“It is all risk capital with no certainty of being acquired in the right place, or of being able to provide the required certainty to support the drilling of a well.
“Without exploration drilling there is one thing for certain – we will not find any new accumulations.”