MINERAL RESOURCES AUTHORITY. 10 th -11 th APRIL 2017

Transcription

1 MINERAL RESOURCES AUTHORITY 10 th -11 th APRIL 2017

2 MINERAL RESOURCES AUTHORITY Vision Statement Improving the lives of all Papua New Guineans through the responsible management of the nation s mineral resources Mission Statement Effectively promote a healthy and sustainable mineral industry; and provide a regulatory environment which maximizes mining opportunities to ensure optimum benefits for the people of PNG Value Statement Achieving client and employee satisfaction through responsible management of our mineral resources today with tomorrow in mind 12/27/2017 Minerals for Life 2

3 Introduction Mineral dependant economy (60% total export receipts 2016). Average 3 year production - 55 tonnes Au, 61 tonnes Ag, 182,000 tonnes Cu. Contribution from 3x large mines, 2x medium mines, 2x small mines and 100,000 artisanal miners. 5 Year portfolio - 4x large mines to commence production. Gold output ~100 tonnes by Diversification of mineral base (Co, Ni, Mo, RE, Fe, Coal).

4 Operating Mines 1. Porgera (Barrick Gold) 2. Kainantu on C&M (Barrick Gold) 3. Ok Tedi (PNG Govt) 4. Tolukuma (PNG Govt) 5. Sinivit C&M(New Guinea Gold) 6. Lihir (Newcrest) 7. Simberi (Allied Gold) 8. Hidden Valley (Harmony/Newcrest JV) 9. Ramu MCC (Chinese Government) The Ramu Ni/Co mine commenced commissioning operations in January 2012 and is the latest addition.

5 PNG Mining Projects

6 Project FS Delivery schedule Production Schedule CAPEX Injection to PNG Economy Mt Kare Delivery in Q AUS$400million K110million Wafi Delivered US$4.5billion K1billion Frieda Delivered US$5billion K1billion Yandera AUS$2billion K800million Woodlark Delivered November AUS$900million K200million Aggregate Total K3.5 billion

7 Focus on Diversification PNG has traditionally been a Gold, Copper & Silver producer. Strong focus now on diversification into : - Nickel & Cobalt (Ramu mine) - Chromite/Iron (Beach Sands FS) - Molybdenum (Yandera project) - Industrial Minerals - Coal (new EL applications) - Rare Earths (PPP option)

8 LICENCING PHASES Mineral Project life cycle Exploration Licence (EL) Development Licence (ML, SML) Relinquishment - Closure DEVELOPMENT PHASES Exploration Feasibility Approvals Construction Operation Decom & Rehab. Post Monitoring Relinquishment DEVELOPMENT DETAILS Exploration JORC Resource Resource Statement Pre/Full Feasibility Mining Method Processing Method FEED Project Financing Cashflows Capex Mine Life Revenue Op.Costs NPV IRR Pay Back Statutory Approvals Environment Mine Safety NEC (ML, SML) Stakeholders Consent Development Forum SML MDC - MOA - Comp. Agmt ML MOA - Comp.Agmt Construction Comm. Operation & Production Decom & Rehab Post Monitoring Relinquishment 12/27/2017 Minerals for Life 8

9 GOVERNMENT APPROVAL PROCESS MEMORANDUM OF AGREEMENT PRE-FORUM MEETINGS DEVELOPMENT FORUM MEMORANDUM OF AGREEMENT PROPOSAL FOR DEVELOPMENT MINING DEVELOPMENT CONTRACT NEGO MINING DEVELOPMENT CONTRACT MINING MINISTER SUBMITS DEV. PROPOSAL, MOA, SML AND MDC TO NEC NEC ADVICES HEAD OF STATE TO EXECUTE 12/27/2017 Minerals for Life 9

10 DEVELOMENT COORDINATION DIVISION OBJECTIVES: To achieve negotiated and agreed project agreements between the stakeholders for the development of exploration, large and small scale mining projects. To successfully implement the undertakings of stakeholders in various project agreements. To promote and planned for sustainable development initiatives and programs for impacted communities. To ensure exploration and mining activities are in compliance with relevant policies and legislations. To increase gold production from the small scale mining sector. 12/27/2017 Minerals for Life 10

11 MINING ACT 1992 Mining / Exploration a National Function. Section 23 Rights of EL Holder Section 3 Consultation between all Stakeholders & parties Empowering of Provincial, Local Government Review of Mining Act and Mineral Policy 12/27/2017 Minerals for Life 11

12 MINING LEGISLATION & POLICY REVIEW Mining Act Mine Closure Resettlement Policy Social Survey & Landowner Identification Seabed Mining Policy Mine Safety 12/27/2017 Minerals for Life 12

13 DEVELOPMENT FORUMS Mining Act 1992 Minister calls for Development /Consultative Forums All Stakeholders Affected/Impacted Benefit Sharing Agreements MOA Constitution/ National Goals and Directive Principles Current Laws and Policies MTDS etc Socio-Economic Impact Assesment (SEIA) 12/27/2017 Minerals for Life 13

14 BENEFIT SHARING AGREEMENT (Memorandum of Agreement) Stakeholder Undertakings and Commitments Distribution Mechanisms Equity / Royalty Sustainable Development / Mine Closure Governance Issues - Accountability Transparency Capacity Building / Gender (WIM) Management of Stakeholder Issues Social Licence Road Map / Strategy 12/27/2017 Minerals for Life 14

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