Photo credit: Mayur Resources - An artist's impression of surface mining operations at Orokolo Bay

Mayur Resources Limited has placed an order with Australian-based specialist leading engineering firm, Vanadium Pty limited (Vanadium Group), for the mineral process plant units for its construction-ready Orokolo Bay Iron and Industrial Sands Project (Orokolo Bay) in Papua New Guinea.

Contract value is approximately A$16 million, consistent with cost estimates, and represents the largest major capital expenditure item for Orokolo Bay (being the fabrication, assembly and delivery of the processing units). Contract execution is conditional upon the successful completion of the proposed spin-out and IPO of Mayur Resources’ subsidiary Mayur Iron (owner of Orokolo Bay), as a new ASX-listed company called Ortus Resources Limited (Ortus).

On 4 April 2022, Mayur released a presentation detailing the compelling business case for Ortus and its flagship Orokolo Bay Project. Subsequent to this the spin out of Ortus was approved by Mayur shareholders on 13 April 2022.

The Orokolo Bay process plant comprises gravity and magnetic separation modules utilised to produce the various planned products, including magnetite and construction sands, with additional modules proposed in year two of operations to produce a zircon concentrate and dense media magnetite. The simple metallurgy at Orokolo Bay flows through to the design of the process circuit, which sees no requirement for chemical processing and unused mineral sand being returned back to the mined area as part of the immediate and ongoing rehabilitation program.

Vanadium Group is an Australian-based business dedicated to innovation and technology within a wide variety of industries. It specialises in developing markets across mineral processing, industrial and construction industries with innovative products, servicing and parts, and methodologies, all customised to their client’s needs. Vanadium Group will fabricate and assemble the process plant in Australia from where it will be shipped to Orokolo Bay in a modular form, for ease of construction and operations on site.

Mayur Resources Managing Director, Paul Mulder, commented “Placing this order is a critical step for the delivery of Orokolo Bay and we are delighted to be partnering with Vanadium Group. Importantly, we have been able to secure pricing that is consistent with the capital estimates used in the DFS, providing further confidence as we work with HBS on the ground in PNG in preparing the site for full construction and operations. With this contract in place with Vanadium Group, and HBS already secured as a strategic investor with responsibility for mine construction and operations, we now have all critical delivery elements in place for Orokolo Bay”.

Article courtesy of Mayur Resources

Two important documents as part of the important milestones to be ticked off by the State and its project partners were signed today at the Government House this morning. The Prime Minister delayed his scheduled visit to Oro Province this morning to observe this important signing. These are the Deed of Amendment to the Porgera Project Commencement Agreement (PPCA), and the Deed of Escrow to park 10% of the project equity.

The PPCA was deemed concluded when Mineral Resources Enga signed on 3 February 2022. The PPCA is the central and structural document designed to elaborate and deal more specifically with what was set out in the Framework Agreement. This agreement is the main foundational agreement that establishes how the joint venture will operate and the operating model that delivers the agreed benefits to all parties. It deals with legacy liability issues, taxation issues, license issues, the establishment of the incorporated joint ventures, benefit flows, landowner benefits, project financing, mine closure and reclamation, fiscal and regulatory stability issues, and other issues and legal terms supporting the recommencement of the mine.

“This is a major milestone. We needed to ensure that all the important responsibilities and commitments by all stakeholders are captured in very clear terms under this agreement. Matters that were overlooked are now captured in the amendment deed and will establish very clearly what is required going forward in our quest to reopen the Porgera Mine.”

The Prime Minister paid special commendations to Barrick and its CEO, Mark Bristow, for his patience in allowing the state and its stakeholders to ensure that any matters, which were overlooked in the original PPCA, are captured in the amendment deed.

“I want to thank Mark Bristow for his patience to allow the State and its stakeholders to ensure that every important detail is captured in the amendment deed. This was important to us, and I would like to acknowledge Mr. Bristow’s support in that respect.”

The amended PPCA now paves the way for the parties to move very quickly to implement further series of documents which include, the signing of the shareholders’ agreement and the incorporation of the joint venture company, the operatorship agreement between the joint venture company, and Barrick as the operator, the fiscal stability agreement, a mining development contract, and the memorandum of agreement regarding benefit-sharing between the relevant provincial government and local level government.

“This is why we are excited about this milestone because it allows us firstly to cover all issues, and secondly it triggers a whole series of final documents which will position us well in terms of our goal to reopen the mine.”

Also, today the Deed of Escrow for the New Porgera Limited 10% Shareholding was signed. In accordance with the PPCA, the shares in the new project company will be as follows: Barrick Gold and Zijin, 49%, Kumul Minerals Holdings Limited, 36%, Mineral Resources Enga, 5%, and Porgera Landowners 10%. The parties to the PPCA have agreed that until such time a determination is reached by the landowners as to how the 10% is apportioned, at an appropriate forum, the 10% would be held in escrow.

“This situation was specifically contemplated by the PPCA which sets out the provisions for the establishment of escrow arrangements so that the 10% shareholding may be issued by the project company pending the determination of the ultimate shareholder(s).”

This arrangement is important because we want a proper forum to be held to have the landowners themselves determine how the shares will be held to best represent their interests.

“The development forum, which is the properly constituted process, will be held shortly to provide an opportunity for this matter to be determined by the landowners and their interests. This forum is where everyone who is impacted directly and indirectly by the mine will have their say, and for the government, this is absolutely important.”

The intention of the escrow, therefore, is to allow the project company to be incorporated in the short term to allow the lodgement of its application for a special mining lease to be made. It allows important regulatory tasks to proceed unhindered while plans are put into place for the development forum to take place.

“I am also pleased to announce that the stakeholders have all agreed for the Mineral Resources Development Corporation, (MRDC) to be the escrow agent. MRDC is an experienced company dealing with landowner matters in the oil, gas, and mining space. We are confident that they will be able to perform their tasks diligently in accordance with the Deed of Escrow.”

These important signings now pave the way for the final pieces of the puzzle to be put in place for the mine to be reopened.

“I have been briefed on the critical pathway to the reopening of the mine, and it remains my utmost priority to ensure that matters which are within the control of the government are concluded as soon as possible to allow the process to move and accelerate. The operator has already assembled their team to design the shortest possible pathway and I want to do what I can to assist in this regard.”

Following the signing, the Prime Minister headed straight to the airport and travelled to Popondetta for a very important visit with the Oro Provincial Government.

To fulfill its commitment to diversity and inclusion, St Barbara, operator of Simberi gold mine in New Ireland, has announced a generous parental leave package for its employees.

Women staff can now take four months fully paid maternity leave to recover from pregnancy and childbirth while bonding with their babies while the men are entitled to 15 days paid paternity leave. Employees only must complete their six month-probation to be entitled to the parental leave.

It is believed, the four-month fully paid maternity leave incentive is the first of its kind in Papua New Guinea and both men and women employees are applauding St Barbara for introducing the ground-breaking policy.

Some employees who have successfully completed their probation are already benefiting from the scheme while others like accounts clerk Sainian Wurlima looks forward to making the most of the opportunity when her turn comes.

Sainian, who has been working at the Simberi operation since 2009, is five months away from having her third baby and is overwhelmed by the good news.

“I am very grateful for this incentive. On behalf of my family, I say a big thank you to St Barbara for giving recognition to us, women employees, and understanding the challenges we go through in juggling our motherly role and career,” said a very happy Sainian who flies to the mine to work from Kokopo in East New Britain.

“It is a great incentive for mothers and babies, especially those with complications. I believe it is a first in PNG and I say how lucky my women colleagues are for being employed by St Barbara,” said accountant and local Tabar islander Paskalis Maradangoi.

Payroll officer Margaret Kupo described the parental leave as a unique advantage for mothers and dads and reminded her colleagues to give back to the company in return.

“Our company has given us women a unique blessing. I call on fellow women staffers to enjoy it, but not abuse it,” said Margaret.

“Once you return to work after four months of resting and bonding with your babies, do your part by remaining committed to your work and giving it your best.”

St Barbara, an ASX 200 company, is the only Australian mining company to be recognised as an Employer of Choice for Gender Equality by Australia’s Workplace Gender Equality Agency (WGEA).

The company has received this citation for seven consecutive years running and is an initial signatory to the WGEA Pay Equity Pledge.

Managing Director and Chief Executive Officer Craig Jetson says the latest citation confirms the Company’s commitment to addressing pay equity and ensuring gender equality in recruitment, promotions, and reward and recognition.

“I feel privileged to have joined a company that is leading the mining industry when it comes to gender equality. As the only mining company to receive the citation again this year, I strongly encourage more resource companies to participate in the WGEA Employer of Choice program to discover the benefits diversity brings to innovation, engagement and performance.”

The National Government has granted a Special Purpose Lease to Newcrest’s wholly owned subsidiary Lihir Gold Limited (LGL), which now allows the company to develop the Londolovit Township on Lihir Island further.

Minister for Department of Lands and Physical Planning, Mr John Rosso, handed over the Special Purpose Lease (SPL) for Portion 1021 in Lihir, Namatanai, to LGL in Port Moresby last week.

“On behalf of the Department, I thank Newcrest Lihir and key Lihir stakeholders for seeking our assistance with the consolidation and grant of the SPL for Portion 1021,” said Mr Rosso.

“Newcrest Lihir is the first mining project in the country to have considered planning and developing a town with post-mine closure in mind; I commend Newcrest for taking this approach,” added Mr Rosso.

The consolidation and granting of the SPL are the first phase of a project that would ultimately create a sustainable future for the people of Lihir post-mine closure.

Newcrest Lihir embarked on this project following consultations with key stakeholders on Lihir. The process involved the conversion of two Agricultural Leases for Portions 422 and 717, held by LGL, to the consolidated SPL.

The first subdivision of the SPL will see the development and grant of approximately 100 state leases to the Kapit families affected by mining activities. The second subdivision will further develop Londolovit township to boost economic growth.

“I am delighted that Newcrest is committed to utilising the state lease to achieve these outcomes. DLPP committed to delivering the consolidated title to you (Newcrest), and we are proud to have delivered on our commitment. We will continue to support you at every stage of the project,” Mr Rosso said.

Additionally, Mr Rosso encouraged his technical teams within DLPP to develop a long-term partnership that would benefit all stakeholders in the project. He also urged Lihirian people to support the project.

“Lihirian communities, take ownership of this project and support it because this township (Londolovit) is important for the generations of Lihirians yet to come,” he said.

In partnership with the Nimamar Local Level Government (NLLG), DLPP and other key stakeholders, Newcrest Lihir is preparing to continue with other project phases, which include town planning and surveying.

Newcrest Lihir General Manager, Mr Johan Labuschagne, received the SPL on behalf of the company and thanked the DLPP Minister, his team, and key stakeholders for collaborating on this project.

“We are delighted as a company and the first mining project to achieve this outcome as it sets the trend for future projects. Owning this Special Purpose Lease is a unique situation in PNG. We are fully committed to creating a sustainable and positive legacy through this lease,” said Mr Labuschagne.

“We look forward to working together with all stakeholders to ensure Londolovit Township becomes a prosperous town, supporting our mining operation now and post-life of mine,” he added.

Furthermore, NLLG Deputy President, Mr Sebastian Siadodoh, commended Newcrest Lihir for embarking on the project, describing it as the ‘right move’.

“This project aligns with the development aspiration of the people we serve – traditional landowners, affected mining resettlement landowners, and over 25 000 people who live, invest and work in Lihir. Our Kapit people will also now have security of tenure, bringing them together to settle as a community on state land,” he said.

Mayur Resources Ltd has declared that it will engage a partner to expand its Central cement and lime project.

According to the company's half-year report, which concluded December 31, it will make a final investment decision this year.

This year, the group will concentrate on:

• Bringing on board a strategic development partner for the project, as well as the start of stage one construction;
• Launching and finishing Ortus Resources Limited's initial public offering on the Australian Securities Exchange, as well as the development of the Orokolo Bay Industrial Sands Project and the first commercial shipment of product;
• Papua New Guinea's renewable energy portfolio, includes interests and ambitions in nature-based forestry carbon offsets, large-scale solar, batteries, and large-scale geothermal; and
• Positioning the power generating and coal projects on a future development path.

Mayur received its first forest carbon concessions in Papua New Guinea on January 12 through its 100 percent owned subsidiary Mayur Renewables PNG Limited (PNG).

“This demonstrated material progress on its commitment to achieve ‘net zero’ carbon emissions for its nation-building import displacement projects, and delivering on the objectives of its strategic review completed in October,” the Mayur report stated.

“The carbon credits from the forest concessions will provide Mayur with a tangible path to net zero for its projects by partnering with Papua New Guinea landowners and the Government, while also enabling participation in international carbon trading markets.”

Reference: The National (23 March 2022). “Mayur seeking project partner”.

St Barbara Limited now expects Simberi will produce between 25-30koz at an AISC of $3,200-3,600 per ounce in FY22. Group FY22 production has been updated to 275-290koz and AISC of $1,750-1,870 per ounce. Guidance for Leonora and Atlantic remain unchanged. 

St Barbara Limited withdrew guidance for its Simberi operations on 18 February 2022 due to significant increases in COVID-19 pandemic infection rates across the Tabar Island group exacerbating the difficulties in ramping up operations after six months in care and maintenance. At its peak the outbreak caused 270 people at the Simberi operation to be in isolation of its circa 600 regular daily workforce. Currently there are 12 employees in isolation and the outbreak is considered to be under control. 

A combination of limited operators and maintainers during the outbreak resulted in low truck availability reducing the amount of material mined and hauled, with production for the third quarter now expected to be ~11koz. The face position in the pits are significantly behind schedule leading to reduced oxide ore being available in Q4. 

Notwithstanding the restoration of national workforce numbers, the Company has determined that ramp-up rates will be slower than previously anticipated. The ongoing difficulties with securing expatriate maintenance specialists and operations management is expected to impact Q4 FY22 and the new guidance range reflects that assessment.

Article courtesy of St Barbara Limited

Senior executives from Newcrest flew into Kavieng to pay Governor Sir Julius Chan and his administration a courtesy visit.

Sandeep Biswas, the managing director and CEO, was joined by Stanley Komunt, the national manager, Tim Bryson, the strategic engagement manager, and Felix Kipalan, the environment, social, and government manager.

Discussions centred on mine life extension, alternative energy sources of power, Lihir ring road upgrading, education assistance through the revisiting of the Tax credit scheme and other major infrastructure development projects.

Governor Sir Julius was subsequently presented with a unique picture frame including six engravings depicting coastal vistas of New Ireland with Dutch ships in the foreground.

François Valentin created the engravings, which were published in Amsterdam in 1977.

They are thought to be more than 290 years old.

Sir Julius was ecstatic to learn of this significant historical event.

Reference: Post-Courier (21 March 2022). “Newcrest Executives Visit New Ireland Government”. 

Ian Tarutia, president of the Papua New Guinea Chamber of Commerce and Industry, is pleased to hear that the Porgera Mine will reopen next month.

“The closure two years ago and its consequences had an adverse impact on the country’s economy in terms of foregone tax revenue, royalties and unemployment of more than 3,000 workers,” he said.

“We are hopeful that formalities can be concluded as soon as possible so that mine operations can resume and kick start economic activities in Enga, the surrounding corridor to Western Highlands and down to Lae.

“We also welcome the passing of the new Connect PNG Act 2021 which will address road funding in the country for the next 20 years.

“Good quality roads and airports are a critical and much-needed infrastructure to provide expedient transportation nationwide.

“Good quality roads, ports (air and sea) are nation-building assets the country needs to move forward.”

The multibillion-dollar Porgera Gold mine in Enga, according to state negotiating team head Dairi Vele, is likely to resume next month.

Vele, on the other hand, predicted that ramping up to consistent output would take several months.

He stated that the mine operator, Barrick Niugini Ltd (BNL), was responsible for paying the mine restart costs, with the state anticipated to reimburse BNL for its portion of the costs.

The shareholders' agreement has still to be signed by equity partners, according to Mineral Resources Authority managing director Jerry Garry.

Reference: The National (18 March 2022). “Chamber president hails news of reopening mine”.

Photo credit: Bougainville Copper Limited

The Panguna Mine Legacy Impact Committee held its second meeting early this month in preparation towards the detailed impact assessment set to commence in mid-2022.

The Committee heard a presentation from the technical consultant Tetra Tech Coffey where they presented their initial findings and recommendations summarizing the current Panguna environment covering initial information to help inform and fast-track the detailed Impact Assessment that will commence later this year.

One of the recommendations from the last meeting was for a professional firm to be identified to complete the technical impact assessment. The Committee was informed that this is currently in a tender process where a leading environmental and human rights firm will be selected to undertake this work over an 18-month period beginning mid-2022.

In addition, the Committee also:

• Endorsed the appointment process and selection for the Committee’s Secretariat, including the Stakeholder and Community Lead position.
• Endorsed the appointment of roles in the technical sub-committee, which will help inform the Committee’s decision making.
• Endorsed the direction of a proposed communications and engagement approach with impacted communities to ensure impacted communities received information on the process and contributed their feedback on an ongoing basis, with further details to be provided at the next meeting 

“Throughout this process engaging well and informing our community members will be critical for the Impact Assessment and identifying priority areas,” said Paramount Chief Blaise Iruinu.

“Importantly this committee is working as one team, with a clear goal and good progress,” said senior community leader Theresa Jaintong. 

The meeting took place at the community centre in Ioro 2, just a few hundred meters from the Panguna Mine. Local community members attended the session and engaged with committee members during breaks.

Through a partnership led by National Regional Member for Bougainville Hon. Peter Tsiamalili and ABG Member for Ioro, Hon. Theonila Roka-Matbob, a VSAT system was installed in the Community Centre. The connection enabled committee members to join the session virtually and will also provide opportunities for scholastic, professional and community development.

During the meeting, committee members also spoke to the importance of keeping ABG informed of progress noting that as a completely separate process, they have recently been in discussion with land owner communities about the reopening of the mine.

The next meeting is planned for May 2022. Rio Tinto’s representative on the Committee, General Manager for Closure Delivery, Mr. John Dumbill shared that with the easing of COVID-19 travel restrictions he hopes to be on the ground to attend the next session in person.

Article courtesy of ABG

When the Porgera mine reopens, Papua New Guinea Prime Minister James Marape says 3,500 former employees would be given "first consideration for jobs."

According to him, the government had requested that all former mine personnel be given priority consideration. Marape was responding to a question about the Porgera Mine and Allied Workers Union urging the government to "honour the commitment to compensate the 3,500 Papua New Guineans who were made redundant by Porgera Joint Venture as a result of the Government's decision not to renew the special mining lease."

The union claims that the government committed to compensating ex-employees and that they have submitted a request, but that the government has not answered.

The Porgera Mine and Allied Workers Union issued the following statement, “On Jul 27, 2020, executives and the Trade Union Congress met with Marape to air the grievances of the 3,500 plus redundant former employee. “At this meeting, Marape committed to pay K26 million-plus as compensation to the former employees, to date, this has yet to eventuate,” the statement said.

When asked, Marape said: “When we make a commitment, it is always honoured. A commitment is a commitment.”

The union said: “The patience of the Porgera mine employees, landowners, contractors and the entire benefit chain have run out, the first follow up of our submission was to the National Executive Council last July and the second was on Dec 2 through Labour and Industrial Relations Minister Tomait Kapili, but again, there was no response from the Government.”

Reference: Pacific Mining Watch (11 March 2022). “PNG PM Marape Urges Porgera Mine Operator to reinstate over 3500 former Employees”. 

The K19 billion (US$5.4 billion) Wafi-Golpu project must benefit landowners and the people of Morobe, according to Papua New Guinea's Morobe Governor Ginson Saonu.

“The ongoing development of the Wafi-Golpu mining project (shows) our commitment to ensure that the people of Morobe favourably benefit from this project,” he said.

“The Morobe government is (working) hard (to ensure that the) benefits are fairly distributed to the landowners and the people.”

He was replying to a request from Wau-Bulolo MP Sam Basil to clarify the province's position on the project.

During the passage of the provincial budget in Lae, Basil stated that there was "a little window before the national election" to move forward with the project.

“I want you to clarify whether we will deliver this before the issue of writs,” Basil said.

“The State negotiation team is finalising negotiations in Port Moresby.

“Please make an announcement because our landowners, especially (in) Hengabu and Yanta want this project to commence.

“Let us collaborate at the political level and finalise our say.

“I personally believe that this project should be delivered under your leadership.”

When presenting the K595 million province budget, Saonu stated that Morobe's commitment to the Wafi-Golpu project had not changed.

He stated that K300,000 had been set aside for Wafi-Golpu business growth and K1 million had been set aside as a Wafi-Golpu Special Support Grant.

Basil expressed gratitude to the Morobe province executive committee for giving cash to the Wafi/Golpu project.

Reference: Pacific Mining Watch (10 March 2022). “PNG's K19 Billion Wafi-Golpu Project must benefit People, says Morobe Governor”.

Mineral Resources Authority (MRA) executive director Jerry Garry says the state is hoping that agreements for the US$5.4 billion (K18.5 billion) Wafi-Golpu mining project in Morobe would be finalized in the first quarter of this year.

He stated the State Negotiation Team (SNT) was working on a mining development agreement, and that many of the terms in the term sheet had been agreed upon.

According to Garry, there were certain unresolved problems that needed to be resolved with stakeholders, including royalty payments and perks, which the state wanted set at 8%.

“Basically, many of the items in the term sheets were agreed to in principal,” Garry said.

“There were one or two outstanding things, particularly the royalties.

“The state has a National Executive Council decision at eight per cent and the company is saying no and is offering 3.5 per cent, so that’s where the negotiations are.

“Negotiations were suspended last Friday, and was to reconvene either on Monday or today to deal with the royalty issue. The State is embarking on getting higher royalties because it comes at no cost to the state.

“It’s a certainty, a certain stream of revenue that can be collected by the state.

“When we talk about equity and corporate income tax, they are profit based, meaning that state will only realise any of these payments when the company or project declares profit, the payback period is about 10 years. So to enter the state going forward with assurance that there will be definite money coming regardless of profitability or not, the state team has been very strong in getting a decent rate on royalties so that they can be sure of its revenue from the project.”

Garry stated that they had not yet settled on a rate.

“We have looked at the financial modelling and the internal rate of return is very healthy for the project as well as the investor’s internal rate of return,” he said

Reference: Luma, Dale. The National (22 February 2022). “State hoping to seal project deal”.