Post on 18-Oct-2020
PNG OVERVIEW www.mineral.gov.pgSNAPSHOT
3 - MAJOR MINES; ……………………………………Ok Tedi, Lihir, Porgera1 – u/g MINE;……………………………………………Tolukuma1 – u/g MINE UNDER CONSTRUCTION;…………...Kainantu2 - PROJECT UNDER FINANCING STUDY………...Ramu, Simberi1 - PROJECT UNDER PRE-FEASIBILITY…………..Golpu2 - FEASIBILITY STUDIES WITH DoM……………...Hidden Valley, Sinivit
- EXPLORATION ON 92 LICENCES, DRILLING ON 8 EL’S
LIHIR
PNG GOLD ,SILVER &COPPER PRODUCTION1972-2004.
-
50,000
100,000
150,000
200,000
250,000
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Copper(t)
Silver(kg)
Gold(kg)
New mine start up
B O1 PMO2 T L 73.5T AU 2004
2002 - 2004 PNG GOLD PRODUCTION
-
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
35,000.0
OK TEDI PORGERA MISIMA LIHIR TOLUKUMA SMALL SCALE
kg
2002
2003
2004
2003 GOLD PRODUCTION FROM THETOP 10 PNG & AUSTRALIAN MINES
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000
Super Pit
Porgera
Groundrush Gold
Lihir
St Ives
Ok Tedi Cu/Au
W Kalgoorlie
Sunrise Dam
Ridgeway Au/Cu
Dead Bullock
ounces
E X P O R T V A L U E IN U S $
-
2 0 0 .0
4 0 0 .0
6 0 0 .0
8 0 0 .0
1 ,0 0 0 .0
1 ,2 0 0 .0
1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3
US$
MIL
L
M e ta lsO ilA g r ic u ltu reF o re s tM a r in eO th e r
12 mth COPPER
EAST SEPIK
I R I
A N
J
A Y
A (
Indo
nesi
a)
Current Exploration Licence
MinisterialReserve
Licences Key
0
SOUTHERN HIGHLANDS
ENGA
WESTERN
&100 200 km
WEST SEPIK
N
SO
EAST NEW BRITAIN
NEW IRELAND
ORO
WEST NEW BRITAIN
MOROBE
MADANG
CHIMBU
GULF
EASTERN HIGHLANDS
WESTERNHIGHLANDS
MANUS
Exploration LicenceUnder Application
Exploration Licence Under Renewal
P A P U A N E W G U I N E AC u r r e n t E x p l o r a t i o n L i c e n c e s t o D e c e m b e r 3 1 , 2 0 0 4
CENTRAL
MILNE BAY
1212
1315
10931024
1344
1312
1373
1329
1375
1391
5811337
1339 1350 1349
454
858
1235
1308
1382
133758
1313
1330
1309
1115
1304
1311
1320
1343
1353
1376
1326
13841341
470
693 1049
193
1335
13341342
1370
13161365
1178
1103
1369
4401105
1352
13631371
1340
1377
1193677497 1305
13781380
12921332
1348
8941379 1390
580 6831333
1366
1264
1271
12841297
1327
1028
1383
1386
1359
1374
1307
1196
609
1355
13671372
1385
13611324
1070
1243
1165
1360
1368
1323 1347
1025
11401356
1362
1043
1322
1077
1345
10691091
1388
13811170485
1021
1331
1357
1358
1387
1279
1172
1346
1389
1351
GRANTED EL’s, Cu & Au prices
0
50
100
150
200
250
65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99
2001
2003
0
100
200
300
400
500
600CURRENT EL'S (incunder renewal)
US$/oz (RHS)
Cu USc/lb
www.mineral.gov.pg
EL APPLICATIONS PER YEAR
0
10
20
30
40
50
60
70
80
90
82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
0
50
100
150
200
250
300
350
400
450ELA's (LHS) GOLD in US$/OZ COPPER in USc/lb
NUM
BER
of A
PPL
ICAT
IONS
E X P L O R A T IO N E X P E N D IT U R E IN U S $
0
1 0
2 0
3 0
4 0
5 0
6 0
7 0
8 0
9 0
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
US$
mill
ions
U S $ A D V A N C E D G R A S S R O O T S
E X P L O R A T IO N E X P E N D IT U R E L E V E L S IN P N G 1 9 7 5 - 2 0 0 4
0
0 . 5
1
1 . 5
2
2 . 5
3
3 . 5
4
4 . 5
5
1 9 7 5 1 9 8 0 1 9 8 5 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 40 . 0 0 %
0 . 0 5 %
0 . 1 0 %
0 . 1 5 %
0 . 2 0 %
0 . 2 5 %W O R L D W ID EE X P L O R A T IO N IN U S $ B n
% o f W O R L D W I D EE X P E N D IT U R E
G L O B A L D A T A T O 2 0 0 0 F R O M J A M E S O T T O ; 2 0 0 0 - 0 4 F R O M M E T A L S E C O N O M I C G R O U P
ASX LISTED CO’s OPERATING IN PNG
RIO
PDG
LHGDRD
HPLBOC
MMN
OMH
ALDTGD
0.1
1.0
10.0
100.0
10,000,000 100,000,000 1,000,000,000 10,000,000,000
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34YEARS
TOLUKUMA
PORGERA
OK TEDI
LIHIR
KAINANTU
SIMBERI
HIDDEN VALLEY
WAFI
GOLPU
RAMU
FRIEDA
OPTIMISTIC PROJECT START UP & MINE LIFE
YEARS UNTIL START UP
EXPECTED LIFE
TWO SCENARIOS FOR PNG Cu & Au PRODUCTION 2003-2013
0
10
20
30
40
50
60
70
80
90
100
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Tonn
es A
u
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
New Mines
Optimistic Tonnes-Au
Base Case Tonnes Au
Base Case Tonnes Cu
OptimisticTonnes-Cu
K S+HV
W FTonnes C
u
ACCRUED ATTRIBUTABLE EXPLORATION EXPENDITURE IN KINA ON CURRENT EXPLORATION
LICENCES
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
AUST S AFRICA CANADA PNG KOREA
Potential New Mines
Kainantu Gold Project – prod’n early 2005, 10 yrs @ 115,000 oz paMorobe Gold Project – possible production 2005, 9 year mine life at 310,000 oz Au, 5.2 m oz Ag pa Simberi Gold Project – 2005, 8 yrs at 40,000 oz paSinivit Gold Project – 2005, 6 year mine life at 20,000 oz paRamu Ni/Co Project – 33,000t Ni & 3,200t Co pa, long life
GOVT’S FISCAL(TAX) INCENTIVES
Income Tax Rate Uniform 30% for all mining companies, reduced from 35% for SML holders but 25% from smaller ML holdersDividend Withholding Tax Rate10%Accelerated Depreciation Allowance 25% declining balance depreciation pool for all assets for new minesRoyalty Rate2% paid to mine landownersDeductions of Exploration Expenditures 200% for all exploration costs incurred after 1/1/03Additional Profits Tax AbolishedRing Fencing Relaxed to allow for 25% of pool of off-lease exploration costs to be deducted for tax purposes provided tax payable is not reduced by 25%Mining Levy NoneCapital Gains Tax NoneState Equity Under Review by GovernmentFiscal Stability Optional at 2% premium
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
China
Indonesia
PNG 1999
Ivory Coast
Mexico
Ontario
Uzbekistan
Bolivia
Tanzania
Kazakhstan
Ghana
Greenland
Peru
Nevada
PNG 2002
West Aus
Zimbabwe
Argentina
Chile
Philippines
South Africa
Sweden
IRR (%)
2002 TAX REVIEW
FRASER INSTITUTE INVESTMENT ATTRACTIVENESS
0
10
20
30
40
50
60
70
80
90
100
NZIN
DIAZIM
BPHILS
ECUADORGHANA
VENKAZ
INDONPNG
COLOMBIA
ARTINA
RUSSIASAF
CHINA
BOLIVIA
MEXBRAZIL
PERUAUSTCHILE
1. Policy and Regulation ComponentCLEARER & UP TO DATE GUIDELINES
2. Exploration and Mining Technical AuditsBETTER CORPORATE COMPLIANCE THRU MONITORING
3. Mineral Tenements Management ComponentMORE CUSTOMER FRIENDLY, FASTER
4. Sustainable Development ComponentREDUCE LANDOWNER DISCONTENTBETTER FINANCIAL GOVERNANCE
5. Geological Survey ComponentNEW DATA, BETTER CUSTOMER ACCESS TO DATA
6. Internal Revenue Commission ComponentIMPROVED UNDERSTANDING OF THE MINING SECTOR, INCREASED REVENUE COLLECTION
WORLBANLOA
Digitisation of geochem data
& geological maps
10 2
km
Digitisation of geophysical data
www.mineral.gov.pg
SYSMIN PROJECT IN PNG – 50M EURO Funding commitment to fixed projectsFORMULATION OF A MINING WASTE MANAGEMENT POLICY 0.7
INDEPENDENT EVALUATION OF DEEP SEA TAILINGS PLACEMENT 1.5
CONSTRUCTION OF A NEW MINING HAUS 3.9
SMALL SCALE MINING VOCATIONAL TRAINING CENTRES 6.2
AIRBORNE GEOPHYSICAL SURVEY 16.1
GEOLOGICAL MAPPING & MINERAL POTENTIAL ASSESSMENT 13.8
GEOLOGICAL & MINERAL RESOURCES INFORMATION SYSTEM 1.1
9
5
Area 1
12
46
78
20 19
18
3
10
1112
14
1516
17
8
1
13
2
Area 2
3
6
5
7
4Port Moresby
Lae
Madang
Wewak
Vanimo
TabubilWabag
Mt. Hagen
Kerema
Kainantu
Popondetta
Alotau
Lorengau
Kavieng
Namatanai
Rabaul
BiallaHoskins
Kandrian
Wau
Goroka
Fig.1 - Geology of PNG and location of the airborne geophysical survey areas (red)
SYSMIN GEOPHYSICAL WORK AREAS
JAPANESE INVOLVEMENTS
MMAJ’s EXPLORATION AT KAINANTU LEASE WITH HIGHLANDS PACIFICJAMSTEC’s INVOLVEMENT IN MARINE SCIENCE RESEARCH, ALSO THROUGH SOPACVOLCANIC & SEISMIC MONITORING EQUIPMENTSJSDF FOR SMALLSCALE MINERS THROUGH WORLD BANKPURCHASE OF OK TEDI COPPER
JAPANESE INVOLVEMENTSSmelter in Japan Period Qantity
(dmt)Nippon Mining & Metals Co. Ltd
2002-2008 40,000
Mitsui Mining & Smelting Co. Ltd
2002-2008 40,000
Pan Pacific Copper Co. Ltd ***
Spot tonnage
20,000
Mitsubishi Materials Corporation
2002-2008 70,000
Sumitomo Metal Mining Co. Ltd
2002-2007 40,000
Furukawa Company Ltd 2002-2007 20,000
Dowa Mining Co. Ltd 2002-2006 20,000
Nittetsu Mining Co. Ltd 2002-2007 10,000
Total 260,000
POSSIBLE AREAS OF JAPANESE INVOLVEMENTS
MORE MINERAL EXPLORATION IN PNGASSISTANC IN MARINE SCIENCE RESEARCH AND SEABED MININGVOLCANIC & SEISMIC MONITORING ASSISTANCE FOR SMALL SCALE MINERS CONTINUED PURCHASE OF OK TEDI COPPER AND FUTURE GOLPU, FRIEDA & BOUGANIVILLE COPPER