PNG Government Grants Special Economic Zone status to Central Cement and Lime Project
by PNG Business News - September 10, 2021
Photo Credit: Mayur Resources
Mayur Resources Limited welcomes the decision, formal notification and provision of a PNG Government Gazette and License from the Independent State of Papua New Guinea’s Special Economic Zones Authority Board (SEZAB), granting Mayur’s Central Cement and Lime project area SEZ status, in accordance with the SEZA 2019.
Managing Director Paul Mulder said “I greatly appreciate the leadership of the PNG Prime Minister & Minister for Bougainville Affairs & Defence, Hon. James Marape, in the establishment of this SEZ, as it sets the right conditions for large scale investment to thrive and catalyse down-stream processing in the SEZ that will particularly benefit the people and the manufacturing industry in PNG.”
The SEZ license covers the same area as the Mining Lease already granted for the CCL Project, located across Kido and Rea Rea. The SEZ provides Mayur with a range of benefits that includes; income tax relief, import tariff exemptions and associated concessions in accord with the SEZA 2019, that was approved by the National Executive Council (PNG Cabinet).
Such benefits in the SEZ zone (to be on foot for a nominal 10-year period) has been set up to attract international investors to co invest alongside existing Mayur investors and to give landowners exposure to future wealth creation opportunities on their land; where the SEZ also caters for all forms of power generation, agriculture, land redevelopment and any other downstream vertically integrated manufacturing.
These concessions and benefits to be received from SEZ status are significant and strengthens the financial outcomes of the project and the other associated activities that Mayur, Landowners and the Provincial Government’s business arms choose to partner on. With over US$10bn slated to be spent in establishing the adjacent Papua LNG Project (alongside the already operating US$18bn PNG LNG facility), the area is set to dramatically expand and become a very attractive investment destination. This SEZ status is consistent with ‘down-stream value-add industry establishment concessions’ that the PNG government is strongly promoting and has provided to investors in the past. Of note is the PNG Governments call for downstream, vertically integrated, value add, import displacement and export generating industries to be established in PNG. Mayur has risen to the challenge and has been accordingly recognised for such ongoing commitment and investment in PNG (since 2011). We continue to exclusively invest in PNG and thank the PNG State-Provincial Governments, Landowners & Customers for their vision and support.” Mr Mulder said.
“Our other Stakeholders are also at the centre of what and how we conduct business, and I am excited and humbled by the show of support for the project culminating in the granting of the SEZ status. This is a great endorsement for the project, I am sure this will give our existing and new investors the confidence required and will also contribute to a range of nation building community infrastructure and services initiatives associated with the project. Above all, this underpins the creation of a new value add down-stream processing industry and new real long-term jobs for PNG.”
In the wake of the SEZ announcement, Managing Director, Mr Mulder, said the status approval was a critical next step to realising further value for the CCL project as a key piece in Mayur Resources diversified portfolio.
“We are pleased that the PNG government recognises the high economic importance to be competitive in the region and the opportunity that this SEZ presents to the country and a multitude of PNG stakeholders. The announcement today is an important value add foothold in CCL’s Project development and is just one of many opportunities for this SEZ and places PNG into the regional mix of being a competitive cement and lime production jurisdiction.” Mr Mulder said.
Thirty subject areas of required information pertaining to economic benefits for PNG were listed for the application. Mayur’s overall strategy is to leverage its access to domestic in country raw materials and help PNG add value to its natural resource’s wealth, whilst providing nation-building opportunities though vertical integration, thus, maximising the other attributes of PNG; namely competitive labour, access to competitive off grid energy, close proximity to in country and international markets and superior far shorter supply chain logistics solutions.
Chairman Varigini Badira of the SEZAB said “The Mayur proposal was of a very high standard and the Board was unanimous in its support of the project being granted SEZ status. We saw this project as a great new industry opportunity for our country to not only replace imports but also build a new strong export industry that many future generations can benefit from with circa 1800 construction jobs, 360 initial direct jobs (not factoring direct subcontractors and support services). An independent assessment by FTI Consulting forecast an indirect multiplier of +10,000 jobs in regional down-stream employment as the facility ramps up to its full productive potential. Frankly speaking, PNG needs many projects like Mayur’s Central Cement & Lime project to help kick start, but importantly maintain its GDP growth, in the face of its very low base and the impacts of Covid”.
Governor of Central Province of PNG Hon. Robert Agarobe MP stated “The project now enhanced with SEZ status, will enable future generations of Central Province people to create wealth for themselves, through their involvement in a number of down-stream vertically integrated manufacturing products (for both domestic and export markets). I’m excited about the prospect of people in Central Province learning new skills, empowering themselves and having a combined sense of purpose that comes from meaningful long-term employment. We have huge opportunity in Central Province and I have supported this SEZ initiative from the very beginning and recognise we need to kickstart all sorts of development for our people’s employment and not just rely on the few mega projects that have many years of development before creating meaningful employment. Mayur Resources have stayed the course, have committed themselves, their investment and partnering approach with Government and the Customary Landowners of Central Province. I know this will be a positive outcome for them with very attractive benefits from this SEZ status and we have committed to work with them to maximise the value that can be extracted from such status provision, so that all involved in this new, but critically needed initiative for PNG, are benefactors.”
Article Courtesy of Mayur Resources
PNG Business News - May 13, 2021
Mayur Resources Close to Developing PNG's First Iron and Industrial Sands Project
Mayur Resources Ltd is nearing completion on the country's first iron and industrial sands project in Orokolo Bay, Gulf, with the Mineral Resources Authority (MRA) reviewing its mining lease proposal. Mayur Resource Ltd managing director Paul Mulder said the MRA had already received the company's K60 million project and evaluation proposal, which was submitted earlier this year. He said it was not a big undertaking, but the advantages to the region would include direct and indirect job growth, as well as the fact that it was a sustainable mining operation inland from the coast. Multiple mechanised sago operations will be introduced as a post-mining activity at the mining site, replicating facilities that the International Finance Corporation (IFC) and French energy company Total had already built further up the Purari River. “We are ensuring that prior to us beginning the mining, everyone must be clear on the direct and indirect benefits as well as sustainable ongoing benefits,” Mulder said. “We can’t say when the MRA will have the project assessed. “That is their internal processes. “But if you compare projects such as Wafi-Golpu, this project is well over 100 times bigger than what we are proposing in capital construction cost and is more complex and much larger in scale. “The initial benefits will last for 15 years with follow on sustainable mechanised sago plantations to continue well after this. “We feel that this could be assessed in an expedient manner as it will benefit many parties and is not complex, involves no chemicals and can be commenced in a much shorter time frame.” Mulder clarified that the project was not to be confused with beach sand mining since it was an ancient buried paleo-geological formation deposit inland, away from the coast, where standard mining methods can be used in accordance with the Mining Act.
PNG Business News - June 07, 2021
Industry Expert: Resource Projects Should Continue
If Papua New Guinea wants to maintain its economy, resource projects should continue to come online, according to an industry expert. This was said by Chris Chambers, Santos PNG's general manager and a PNG Chamber of Mines and Petroleum council member, during the chamber's webinar series. He stressed the need for collaboration between the government and the industry in securing pipelines. “It is also important to see that sanctioning of large projects such as the PNG LNG gives a very quick economic fill up to the economy as getting taxes, (the different taxes) and increase in employment,” he said. The resource business accounts for 88 per cent of the country's overall export and 28 per cent of its gross domestic product (GDP) in 2019, according to a snapshot of a study from the PNG Extractive Industries Transparency Institute (PNG EITI). According to the World Bank, PNG is one of the top ten resource-dependent economies in the world. “It’s not necessarily a great thing, but it’s something we have to work within and try to maximise,” Chambers said. The following are some of the country's noteworthy resource projects: The gold mine Porgera in Enga, which is set to reopen later this year; The Wafi-Golpu project, worth US$5.4 billion (K154.91 billion), is located in Morobe's Huon Gulf and Wau-Bulolo districts. Harmony Gold Mining Ltd and Newcrest Mining Ltd have a 50/50 stake in this large-scale underground mining operation. The US$12 billion (K41.38 billion) Papua LNG project, which will be operated by Total E&P PNG Ltd; The US$9.2 billion (K31.67 billion) P'nyang gas project, which is jointly owned by ExxonMobil and Oil Search; The PASCA A Petroleum project in the Gulf; Others include the Frieda River copper and gold project in East and West Sepik, as well as GeoPacific Resources Ltd's K420 million Woodlark project in Milne Bay. Prime Minister James Marape stated that the government will continue to work on the Wafi-Golpu project as well as other outstanding resource projects. “We have already issued an environmental permit and we will progress Wafi-Golpu after Porgera is moved,” he said. “In the petroleum space, Pasca has been discussed. We thank ExxonMobil for reopening discussions on P’nyang, and we are remobilizing for Papua LNG. We have been active in business in the midst of Covid-19 as far as the mining and petroleum sector is concerned.” According to Marape, the government welcomes and will work with all investors in the nation since they are entitled to a high return on investment while also ensuring that locals get a fair part of the resources. Reference: Moi, Clarissa. The National (7 June 2021). “Bring in more projects: Expert”.
PNG Business News - June 23, 2021
Kainantu Resources Acquires May River Project
The May River project in West Sepik has been acquired by Kainantu Resources Ltd (KRL) under formal agreements. Chief executive officer Matthew Salthouse said, “The May River project is an exciting acquisition for KRL, given its location in an exceptionally prospective and proven district for significant copper-gold projects.” May River, according to Salthouse, will provide the Asia-Pacific gold mining business with access to a number of very promising copper-gold possibilities near the world-renowned Frieda River copper-gold project. “The deal also demonstrates KRL’s ability to execute value accretive acquisitions, in line with our broader strategy of developing a portfolio of high-quality gold and copper-gold projects in the Asia-Pacific and advancing these through the value curve. “The May River acquisitions fits KRL’s strategy and we are excited to access the ground and advance the existing data. “The KRL looks forward to continuing to work with the key stakeholders of Niuminco and Hardrock in developing both the May River project and KRL as an emerging mining company.” The May River project is located near the Frieda and Sepik rivers in West Sepik. It's less than 15 kilometres from PanAust's Frieda River project. The Project is situated on a large tenement area, with previous holders having carried out exploration and drilling that revealed considerable copper and gold prospectivity. The larger regional geology suggests that a number of highly promising zones exist across the Project. KRL entered into two agreements to buy the highly promising copper-gold mining concessions known as the May River project, indirectly through the acquisition of two holding companies. KRL will take full ownership and administration of the project once the purchases are completed. It will continue to engage with Niuminco and Hardrock management (as well as key stakeholders in PNG) to acquire the required regulatory approvals for the Acquisitions in order to complete and consolidate the Project. Under the Hardrock Agreement, KRL is presently performing the field work required for the Study. Initial fieldwork looks to be promising, and KRL will provide an update. Reference: Kero, Gynnie. The National (21 June 2021). Kainantu “Resources excited about project’s potential”. Kainanturesources.com. “Acquisition of Highly Prospective Copper-Gold Project”.
PNG Business News - September 16, 2021
Engaging the global crowd to design the electric mine of the future
Today, the Electric Mine Consortium (EMC) launched the ‘Electric Mine Simulation’ crowd challenge in partnership with the OZ Minerals Think & Act Differently ideas incubator and Unearthed. OZ Minerals, IGO, South 32, Blackstone Minerals, Evolution Mining, Barminco and Goldfields have committed to significantly reducing their carbon footprint. These seven mining companies along with a number of partner companies, have come together to form the Electric Mine Consortium, a collaborative group seeking to accelerate progress towards a fully electrified zero carbon and zero particulates mine. Electrification of mine sites is a critical step change needed for the mining industry to achieve a zero carbon future. Switching to electric and renewable energy represents a transformational shift that will change the way mines are designed. This challenge is about using simulation to understand the impacts of electrification on mine design and through this challenge the EMC is looking to find innovators that can help do this. The eight-week online challenge invites companies and individuals from around the world to propose an approach to designing an open architecture, mine design simulation platform that can initially be used to compare a fully electric underground mine with its traditional diesel powered equivalent. Brett Triffett, Transformation Technologist, from OZ Minerals explained, “there is a great opportunity to use whole-of-mine simulations that integrate all of the dependent systems so we can understand the holistic value in transitioning from diesel to electric solutions in underground mines. We would like to be able to quickly build and test different mine designs and compare things like productivity, costs, emissions and energy requirements. We think that eventually this capability could be expanded to include the entire mining value chain. We have invited the crowd to propose solutions because we are not currently aware of a platform that meets this brief. What we have learned from running previous crowd challenges is that there are often people from outside our industry who have ideas or technology that can be applied to mining. These people are often unknown to us and in many cases they are unfamiliar with our industry. By participating in a crowd challenge, innovators can access a new market and be supported in developing new products and business models.”. A selected cohort from from this challenge will join the Think & Act Differently incubator and be supported in developing a demonstration of their solution. The incubator program is a supportive environment that includes; funding, mentoring, opportunities for collaboration, capability uplift and exposure to mining data and mining operations from across the EMC members.
PNG Business News - September 15, 2021
Weir Minerals strengthens its partnership with international technology group, Andritz
Weir Minerals and Andritz have signed an agreement at MINExpo 2021 expanding their shared commitment and strategic cooperation to supply equipment for processing tailings in the mining industry. The foundations of this agreement have been built on a shared understanding and vision to enable the sustainable and efficient delivery of the natural resources essential to create a better future for the world. Since 2018, Weir Minerals’ and Andritz’s partnership has seen them collaborate on joint tailings projects. This shared history as partners – a collaboration made stronger by the quality of individuals on both teams – has reinforced their abiding belief that together, both Weir Minerals and Andritz are stronger. This shared success has led both Weir Minerals and Andritz to renew their on-going commitment and announce they’ll be expanding their offer to all regions around the globe. Utilising Andritz’s proven separation and dewatering technologies, Weir Minerals has strengthened its whole-of-mine capabilities, showcasing market-leading products from extraction to comminution, mill circuit and tailings management. ‘Weir Minerals has been providing tailings solutions for decades; we have dedicated research facilities – the Weir Technical Centre in Melbourne, Australia and the Sustainable Mining Centre in Venlo, Netherlands – that are challenging conventional ways of thinking about tailings, while also developing practical, innovative and sustainable solutions that will reduce operating costs and improve safety,’ Ricardo Garib, Weir Minerals Division President said. ‘Decreasing ore grades mean that mines are producing more tailings than ever before. One of the challenges with tailings management is that there cannot be a one-size-fits-all approach; each mine requires a tailored solution that carefully considers the minerals being processed, as well as the site’s climatic and geological conditions. Weir Minerals prides itself on having both the expertise and equipment that allows us to partner with miners everywhere to plan and implement tailings solutions based on their operations’ unique challenges and this agreement with Andritz enhances those capabilities,’ he said. ‘Andritz has a long history working across a range of different industries. We are very proud of the work we’ve done with Weir Minerals; together, we’re excited about continuing to provide a joint offering of sustainable and value-added tailings solutions. Both companies bring a different expertise and know-how to the partnership; we complement one another and ultimately it’s our customers who’ll benefit,’ Steve Huff, President Andritz Separation said. Tailings management forms an important element of Weir Minerals’ broader integrated solutions approach, which considers problems and challenges from all perspective and draws on a range of experts – process engineers, design engineers, product experts and materials scientists, among others – to identify potential challenges and opportunities and provide tailored solutions. ‘This latest agreement enhances our overall tailings offering and enables us to provide our customers with a complete tailings solution. Under the brand name IsoDry, we will continue to offer customers a range of mechanical separation technologies, such as thickeners, filter presses, centrifuges, and vacuum belt filters,’ Charlie Stone, Weir Minerals VP Sales and Business Development-Mill Circuit said. Weir Minerals has strengthened its tailings team to support the market and ensure that it can provide innovative solutions based on each customer’s specific requirements. The agreement provides the opportunity for potential future collaboration on technology, harnessing Andritz’s market-leading separation technology in conjunction with Weir Minerals’ minerals and tailings processing technology. Many of these products – Warman® pumps to transport fluid tailings, GEHO® pumps to handle paste, Cavex® hydrocyclones to dewater tailings and the Multiflo® range of dewatering solutions – have been integral to helping miners manage their waste for generations. Weir Minerals and Andritz have also reiterated their shared commitment to sustainability; it is an essential part of both their business and corporate strategies. Both companies have outlined ambitious plans to reduce their carbon emissions, while their approach to ESG initiatives extends to all aspects of their organisations. ‘Shareholders and stakeholders are rightfully demanding more sustainable mining practices and tailings management is an area where there’s a lot of scope for improvement. Weir Minerals wants to play a central role in changing how the industry thinks about and manages tailings. Ultimately, we believe that sustainable solutions are not only environmentally beneficial, but also reduce operating costs and minimise risk,’ David Almond, Weir Minerals Global Director, Product Management Process said. ‘Weir strives to make our customers more sustainable and efficient; it’s core to our purpose and at the heart of what we do. We believe that embedding sustainability throughout our organisation protects and creates long-term value for our stakeholders and secures the long-term future of Weir. Our approach to tailings management is an extension of our broader corporate strategy. There is scope to make long-lasting, impactful change in how the mining sector thinks about and manages tailings and Weir is proud to be one of the industry leaders,’ Jon Stanton, Weir Group Chief Executive said.
PNG Business News - September 15, 2021
STAKEHOLDERS VIEWS CRITICAL FOR BETTER RESOURCE GOVERNANCE: ALKAN
Head of the PNGEITI Mr Lucas Alkan last week in Wabag at the opening of the consultation. The Head of the PNG Extractive Industries Transparency Initiative (EITI) Mr. Lucas Alkan has issued a strong challenge to stakeholders in the extractive industries to embrace and promote the work of EITI in Papua New Guinea to derive best value from the industry. Mr. Alkan spoke of this last week in Wabag when he opened the upper highlands regional consultation on a proposed law to transition the PNGEITI into a statutory authority. “PNG EITI is a government driven initiative to promote transparency and accountability in the PNG mining and petroleum space which has been driving the PNG economy for a sustained period of time. “But there is this misconception about proceeds from mining and petroleum activities not being translated well into development on the ground and this sentiment is shared by many at both the provincial and national level. “What PNGEITI is doing is to shed light on the leakages on revenues and proceeds from the mining and petroleum activities with the ultimate aim of improving governance in the mining and petroleum sectors using international best practice standards to see the desired development outcome from this important sector. “Seven years into PNGEITI implementation in PNG, we’ve now seen the need to make the PNGEITI administrative body, the PNGEITI into a statutory body to see more improvement in the EITI reports to enhance good governance in the sector to derive the best development outcome. “We’ve covered two regions; the New Guinea Islands and Momase regions and we are now conducting consultations in Enga and Eastern Highalnds to cover the big highlands region. “I encourage the best knowledge and views from all stakeholders from the stakeholders in these consultations so that we give birth to a law that truly reflects the genuine views of all stakeholders for better development outcomes. A State Technical working group comprising the Department of Petroleum, State Solicitor, Internal Revenue Commission, Department of Personnel Management, Department of Treasury, the National Economic Fiscal Commission and Department of Finance were in the Enga capital, Wabag for a four days consultation for the Upper Highlands region” “PNGEITI has been in operations since 2014 effected by a NEC decision and now we are moving into the next step in anchoring this extractive industry reporting process into PNG’s legal and administrative system. PNGEITI published 7 reports detailing activities taking placing inn the PNG mining and petroleum space,” Mr. Alkan said. Article Courtesy of PNG Extractive Industries Transparency Initiative