Power supply issue ‘overdue’

THE generation and efficient supply of adequate electricity to large mining operations across Papua New Guinea is long overdue and should have been addressed more than 50 years ago when mining began in the country, Mining Minister Johnson Tuke says.
Tuke, during a meeting with Era Resources Inc (ERI) officials at his office in Port Moresby yesterday, said: “Previous governments have always been focused on the transmission side of electricity and not power generation and, therefore, it’s pretty tough now to address the current power generation issues  in the country, not only in the mining sector but in other areas as well.”
Tuke welcomed the BOO strategy where one was to build, own and operate their own power supply plants to cater for their operations.
The imminent separation of petroleum and energy offices, with the introduction of the Energy Authority Bill tabled in Parliament, the new entity will be solely responsible to address energy matters such as those being experienced by mining companies.
“Just like we have the Mineral Resources Authority that caters for mining industry requirements, the Energy Resources Authority would be responsible for
power generation matters,” Tuke said.
The timely visit by ERI director Sir Rabbie Namaliu and vice-president for Global Operations Andre Wessels was to provide an update on the Yandera Copper Project in Madang, reinforce its significance as a project of national interest, reconfirm its unique ability to attract dedicated foreign infrastructure financing and stimulate significant regional development.
According to Wessels, an operation like Yandera would require 200MW of sustainable low-cost electricity to power its mine, slurry pipeline,
coastal processing and ancillary facilities.
He said that the construction of a dam alone would cost Era Resources about K3.4 billion, and that they were also looking at other alternative energy sources by engaging with important energy companies like Mayur Resources.