By SHIRLEY MAULUDU
PANAUST has invested US$100 million (K314.93 million) since 2014 in the Freida River project in West Sepik, managing director Dr Fred Hess says.
Hess told the PNG Mining and Petroleum conference in Port Moresby yesterday that the project might have more than 30 years of mine life.
“One of the things that attracted us at the very beginning was that we had a very strong belief in PNG as a very strong investment destination,” he said.
“We also had a lot of confidence because a lot had gone before us and demonstrated that. And above all, we think that politically, the environment is positive for investment.”
Hess said as per outcome of the 2016 feasibility study, one of the biggest challenges that the company faced was logistics.
“Frieda River is quite remote, and it involves essentially the combination of road, pipelines, barge, to Wewak. That distance is about 660 kilometres,” Hess said.
“What we have been investigating subsequently, as a result of producing feasibility study is to be able to gain some feedback and some of the opportunities that we are not able to investigate over time. Challenges expected from the Frieda are dry spells.”