Shipping critical part of mining operations

The National Business
Shipping is a critical part of any mining operation near a river or sea, according to P&O Maritime Logistics chief executive officer MARTIN HELWEG. The maritime and logistics company manages vessels used in the mining and energy sectors. He believes there is also potential for expansion in the shipping industry in collaboration with mines as mining and petroleum activities increase in the country. Business Reporter DALE LUMA interviewed Helweg on the shipping industry’s role in the mining sector.

Q: Can you explain the P&O Maritimes operation in the country?

HELWEG: We operate 12 vessels that mainly cover the transportation of copper concentrate from Kiunga down to Port Moresby where it is then transshipped out to the global markets.
In addition to the copper concentrate, we assist and supply critical supplies of containers, fuel and building materials up the Fly River for the mine workers and Ok Tedi operations.

Do you operate with other mines apart from Ok Tedi Mining Ltd?
In Papua New Guinea, we only operate with Ok Tedi at the moment.
And we operate in a different venture with Puma Energy where we have a small tanker vessel which supplies fuel around the islands.

What is the cost of a acquiring such a vessel to transport minerals such as copper concentrates?
The cost of this type of vessel would be around US$20 million (around K60 million).

How important is shipping services to the operations of a mine?
In this particular case, it is very critical, because there is no road up to the mine.
The mine simply wouldn’t exist if it wasn’t possible to ship the copper concentrate down the Fly River.
So shipping is very critical.
Without shipping in this particular case, there wouldn’t be a mine.
The mine is there because of its proximity to the Fly River, and the ability to ship the concentrate out.

What’s your view of the shipping industry in PNG?
I think the shipping industry here is good. It’s a market that is still developing, and we are trying to develop local seafarers and take them through cadetships, and therefore developing it into a bigger seafaring nation than what it is today.
PNG is very uniquely positioned for shipping trade and therefore has all the ingredients of being a great shipping nation.
But for that, we also have to develop the capabilities inside Papua New Guinea which we are taking part in together with the PNG Maritime College.

Top: P&O Maritime Logistics chief executive officer Martin Helweg with traditional dancers from Western during the arrival of the vessel mv Fly Enterprise. BOTTOM RIGHT: Traditional dancers from Western performing a dance in front of the vessel mv Fly Enterprise. – Nationalpics by DALE LUMA

Do you see any other partnerships and potential investment opportunities in the country?
There is a great potential here in Papua New Guinea and we can see that there is increased mining activity.
There are other mines planned and we hope to be part of that future of delivering that supply chain for these mines.