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Deep Sea Mining

Deep Sea Mining

Scholarships in Mining

First ever Power, Mining Summit held in the Western Pacific

THE Mining and Power conference that was held in Port Moresby by Pacific Energy Aviation in partnership with Shell is the first in the Western Pacific region.

This conference was held to create awareness on Shell lubricant products that are currently in the PNG market especially to the mining and power industries.

General Manager Henry Elias said because there is a huge potential in the country for the products that they are supplying they decided to have the conference so that it can help to create more awareness on the Shell lubricant products that they have.

Mr Elias said this is the first time that Shell has assisted them with the launching as they have never done that in other countries in the Western Pacific.

"We also want to basically tell the country that Shell is not gone, Shell brand which has been the number one for the last ten years is still here and we are the distributors, we are here and Shell is backing us full time as well as an educational awareness that will also help our customers understand our products better.

"Through this conference also our customers will be aware and pretty much will be attracted to our products which means that when we sell it will improve our volume portfolio if we want to grow the business and if we want to grow the volume and increase the volume in this country," he said.

He said currently they are supplying to a number of clients in the country including Morobe Mining Joint Ventures (MMJV), K92 mine, RD Tuna cannery and a few others.

He added that they are also looking at extending to other centres in the country including Madang, Rabaul and probably the highlands in the next five years as they already have one office operating in Lae.

"We are now looking at a solution as for most mining companies there are no proper waste procedures meaning they cannot get rid of the waste oil even with the current suppliers that will be one of our biggest challenges as to how we will find the solutions for them."

"One of the challenges also is the supply logistics for some of them because of shipping and the lead to time of production and so forth," he said.

Post Courier

LNG reports no accident on site

ExxonMobil PNG has recorded 63,000,000 hours of no death or injury on project sites.

EMPNG managing director Andrew Barry said this was because the safety of their employees is a number one priority.

Mr Barry stated that ExxonMobil as the operator for the PNG LNG project has invested significantly in the local PNG businesses to help them build long term sustainable businesses.

"We’re humble to see the legacy that the PNG LNG project in PNG. The project is continuing to build intellectual and skills capacity of Papua New Guineans.

Since started we have been focused on safely increasing the efficiency of our operations and enhancing production rates at the Hides Gas conditioning plant and the LNG project.

"As a result our facilities are operating at higher levels of efficiency and reliability well above our expectations," he said.

Mr Barry said this would have not been possible without the strong support of their supplier community as well as other small contracting businesses.

"The achievement that I am most proud of is our safety performance. Since July 2013 we have worked around 63,000,000 hours without a single loss or injury.

"I think that is an amazing achievement and it is the result of all of the hard work that many people put into our organisation as we continue to focus every single day that can be of relevant to any opportunities that you may be involved in," he told the forum.

He said the forum or discussion is very important as it will help them to understand their business that will drive them into the future through working in partnerships with both the local suppliers as well as contract companies.

"I think it’s going to be extremely important and an opportunity for you all here to understand what our expectations are but it is also just as important for us and critically important for us to understand the challenges and the opportunities and the services that you’re able to provide," he said. Post Courier

Newcrest invests K70m in projects in PNG


NEWCREST Mining has invested more than K70 million in 14 projects under the tax credit scheme since 2012, chairman Pater Hay says.
He said some of the projects had been completed while others were still underway.
“Lihir participates in the National Government’s tax credit scheme where we fund and project manage agreed infrastructure projects across New Ireland out of a proportion of company tax we would otherwise pay to the Government,” he said.
Hay made the statement during a function in Port Moresby last Thursday. “Two more projects totalling K28m have been approved and are due for completion by 2018,” he said.
“These projects, identified and agreed in partnership with the Government and New Ireland provincial governments, are helping to address essential community development needs.”
Hay highlighted the working relationship the company has with communities on Lihir.
“But it matters little if the local communities around our operations don’t want us there.
That is why we work very hard to develop and maintain positive relationships with, and invest in, those communities,” he said.

“The entire Lihir management team have been working very closely with the Lihir mining area landowners association and other local community groups in the lead up to the next review of the Lihir memorandum of agreement and the integrated benefits package.
“Newcrest is a significant employer, with more than 2000 Papua New Guineans directly employed and another 2500 contractors, predominantly at our Lihir operation.”

Wafi-Golpu project will have a hugh impact on PNG: Hay

BASED on findings, the Wafi-Golpu project in Morobe will have a huge impact on Papua New Guinea, Newcrest chairman Peter Hay says.
He said during a function last Thursday that based on contained metal, it is ranked within the top 10 undeveloped copper and gold deposits in the world.
“Following the completion of a strategic review, we signed an agreement last month to sell our 50 per cent interest in the Hidden Valley mine to our joint venture partner, Harmony Gold Mining Limited,” Hay said.
“We look forward to continuing to work with Harmony on the exciting Wafi-Golpu copper gold project in Morobe. It would be Papua New Guinea’s first major underground mine, and first major, large-scale resource project in Morobe since the Hidden Valley mine commenced operations in 2009.
“Independent assessments indicated the project would have a significant positive impact here in PNG, with billions of dollars of direct capital investment and hundreds of millions of dollars in recurrent operating expenditure.
“With a potential mine life of over 30 years, it would also generate benefit streams to landowners and host communities,and  creating hundreds of new jobs and business development opportunities

PNG confident with more LNG projects

THE PNG Government has no objection to and is confident of the feasibility of having another separate LNG project in the country. Prime Minister Peter O’Neill said yesterday the government has confidence in any new LNG project deemed feasible especially by investors. Mr O’Neill attributed the confidence based on what he said was PNG’s competitive cost structures and stable fiscal regime. He said this in response to comments made by the managing director of Kumul Petroleum Holdings Wapu Sonk over anti-competition concerns relating to ExxonMobil’s take  over of InterOil  interest in PNG oil and gas interests. He said despite the arrangement between the two there would still be two LNG operators. Mr Sonk told Energy Intelligence that “Exxon is not going to be the operator of Papua LNG. Total remains the operator of Papua LNG.”

 “But as far as the country is concerned, we are actually very happy because it brings two super majors to work together and explore the synergies with the existing fields and new fields coming on line. The resources are enough to build more trains.” He said whether it was possible PNG LNG’s proposed third train would have a different shareholder structure from the first two adding it depended on commercial negotiations among Exxon, Total and other partners. “It depends which is the most capital efficient way to develop the third train.

The government will have a say, noting that one possible scenario was to separate the upstream and pipeline business from the downstream development,” he said. Mr O’Neill when commenting on the projects said it is expected that despite global challenges, projects in PNG are well on track for delivery. “Negotiations are continuing and have yet to be finalised, the shareholders of this new project is yet to be settled and then negotiations will be concluded with the State and the respective partners,” he said. Meanwhile according to a Port Moresby Stocks Exchange release yesterday on the update of the transaction, the closing of the deal with ExxonMobil requires a final order from the Supreme Court of Yukon in the US. This was after the hearing that was held on September 27, and the court is considering the matter, including an objection filed by Phil Mulacek.

InterOil awaits final court order

THE closing of the transaction on the proposed acquisition of InterOil by ExxonMobil requires a final order from the Supreme Court of Yukon, according to InterOil.
The company, in a market release yesterday, stated that as previously disclosed, the closing of the transaction with ExxonMobil required a final order from the Supreme Court of Yukon.
The hearing was held on Tuesday and the court was considering the matter, including an objection filed by shareholder Phil Mulacek. Completion of the transaction prior to the end of September would require the issuance of a final order no later than the close of business yesterday.
ExxonMobil and InterOil intend to close the transaction promptly after the final order is obtained.
Meanwhile, the Independent
Consumer and Competition Commission raised its concern over the proposed deal saying it could adversely affect competition and breach the ICCC Act.
Commissioner Paulus Ain said they were investigating the proposed transaction.
“At this stage of its investigation, the ICCC does not support or condone the acquisition,” he said.
“Part of the ICCC’s function is to foster a conducive economic environment in PNG where companies are able to trade and compete freely within the confines of the law.” The National

Papua New Guinea has enough gas

KUMUL Petroleum Holding managing director Wapu Sonk says Papua New Guinea has enough gas to support a separate LNG project – such as the Papua LNG project led by Total SA.
He refuted claims that the PNG LNG operator ExxonMobil’s takeover of InterOil would leave the country with just one LNG project.
Sonk said Total’s proposed Papua LNG project would still be built even is Exxon expanded its 6.9 million tonne per year PNG LNG project with a third train. Kumul holds the Government’s 16.6 per cent stake in PNG LNG.
“Exxon has been in the country for a long time and knows the Government’s position – which is to have two super majors in the country developing two separate projects,” Sonk told Energy Intelligence on the sidelines of a world LNG series summit in Singapore last week.
“But if there are synergies to be explored in the meantime under current market conditions, we will explore them. That’s basically how we are driven.”
Sonk’s comment was in contrast to what Oil Search, another PNG LNG stakeholder, said, that it was “highly unlikely” that Total would still build the Greenfield Papua LNG.
Sonk said the Government had no legal right to block Exxon’s acquisition of InterOil but had a say in determining how projects were developed.
“Antelope7 will still be drilled,” he said.
He was referring to a well on Petroleum Retention License 15, the acreage earmarked to feed future LNG (liquefied natural gas) capacity. Total, which holds 40.1 per cent in PRL 15 alongside Oil Search on 22.8 percent, was planning to drill Antelope 7 this quarter, to be followed by reserve certification to help determine the capacity of Papua LNG and whether it features one big train or two smaller trains.
The French major had backed Oil Search’s $2.2 billion bid to buy InterOil, which has a 36.5 per cent stake in PRL 15, only for Exxon, to make a superior offer.
Exxon believes the best value proposition is for the PRL 15 resources to go through its existing facility. As gas from InterOil’s share in PRL 15 is now expected to feed the third train of PNG LNG, Sonk suggested Total might have to farm into nearby acreage to support future trains.

Bougainville Copper Limited changes management

THE Bougainville Copper Limited and Rio Tinto have executed a deed to terminate the Rio management agreement effective from September 12 this year, according to chairman Rob Burns.
Burns in a statement said BCL was now an independently managed PNG company.
Its head office and management team will still be based in Port Moresby.
“On June 30, 2016, Rio Tinto transferred its controlling interest of 53.8 per cent shareholding in BCL to an independent trustee,” Burns said.
“The Independent State of Papua New Guinea took up its 17.4 per cent entitlement of the BCL shares under the arrangements established by Rio Tinto.
“Previously, the PNG Government had 19.06 per cent of shares. So the Rio Tinto gift gave PNG a 36.4 per cent equity holding in the company.
“The Autonomous Bougainville Government also accepted its 36.4 per cent shareholding making them equal shareholders.”
Following the transfer of its shareholding, the two Rio Tinto directors resigned from the BCL board.
Burns is the new chairman of the board of directors. He has a 40-year experience in operational and technical mining experience including seven years with BCL while the mine was operating. He has been a director of BCL for the last 10 years.
Former MP Sir Moi Avei has been appointed to the board. He had been credited for brokering the Bougainville peace agreement.
The other independent directors of BCL are Sir Rabbie Namaliu and Dame Carol Kidu.
BCL employed and trained about 12,000 people, including 1,000 who completed trade apprenticeships and 400 who completed graduate and post-graduate studies.
Since the closure of the mine, the Bougainville Copper Foundation has continued annually to provide educational scholarships for 100 Bougainvilleans.
BCL holds the exploration licence over the Panguna mine site. It is working with the Government and the ABG, people of Bougainville, landowners and stakeholders to have a redevelopment plan for a new world-class Panguna copper, gold and silver mine.