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PNG's Frieda River Gold Mine awaits approval

Staff Reporter | 2:01 PM | |
Papua New Guinea's next worldclass gold mine at Frieda River in East Sepik province is only awaiting formal permit approvals before securing a special mining lease (SML) to begin construction.
Highlands Pacific Ltd who owns 20 percent of PanAust in its June quarter report, stated that permitting processes were the focus activity for the project.
As a result, project manager, PanAust continues to liaise with Mineral Resources Authority to progress applications for a SML while at the same time explore refinements to the project design to improve development economics.
The report said the project was only waiting for the national election to be complete so that relevant government authorities can provide guidance on the permitting process.
PanAust is also investigating a larger hydroelectric facility that could deliver additional power potential.
Alternatives are also being considered for shared-use infrastructure, development of the Nena deposit and site layout.
Meanwhile, Highlands Pacific Ltd and PanAust have commenced arbitration proceedings to resolve a dispute regarding funding of project expenditure.
The parties are in dispute regarding their obligations under the joint venture agreement, including iwhether HPL is obliged to commence funding of project expenditures.
HPL previously has sought to resolve the dispute through mediation, however the parties have now agreed to seek a final and binding settlement before a sole arbitrator.
It is expected that the arbitration decision will be received before the end of the year. Post Courier