MINING Minister Byron Chan says mining companies are in for a boon with the establishment of the US$2 billion (K6 billion) ethane power plant in Madang.
It is expected to transmit electricity from Madang to Port Moresby.
Chan, who invited American Ethane Company into the country to look at providing cheaper electricity for mining companies, last week met company officials, Petroleum and Energy Minister Ben Micah, and officers from departments of Public Enterprise and Mining and Petroleum, and the Independent Consumer and Competition Commission.
“The reason why I’m so interested and deeply involved with this project is that we have major mines like Yandera, Frieda River and Wafi,” he said.
“All our existing mines, including Lihir and Simberi, Ramu Nickel and Hidden Valley, Ok Tedi, depend on fuel for power generation. Fuel cost is high.
“It’s not only expensive to generate power, but actually getting the fuel to the mines is expensive.
“So mines are hit with double costs.
“It reflects about 30 to 40 per cent of the costs of any mine in Papua New Guinea.”
It is expected to transmit electricity from Madang to Port Moresby.
Chan, who invited American Ethane Company into the country to look at providing cheaper electricity for mining companies, last week met company officials, Petroleum and Energy Minister Ben Micah, and officers from departments of Public Enterprise and Mining and Petroleum, and the Independent Consumer and Competition Commission.
“The reason why I’m so interested and deeply involved with this project is that we have major mines like Yandera, Frieda River and Wafi,” he said.
“All our existing mines, including Lihir and Simberi, Ramu Nickel and Hidden Valley, Ok Tedi, depend on fuel for power generation. Fuel cost is high.
“It’s not only expensive to generate power, but actually getting the fuel to the mines is expensive.
“So mines are hit with double costs.
“It reflects about 30 to 40 per cent of the costs of any mine in Papua New Guinea.”
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Mining News