Major Projects Planned in Papua New Guinea Represent More Than $38 Billion in Investment Value

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Researched by Industrial Info Resources Australia (Perth, Australia)--Mineral deposits in Papua New Guinea (PNG), including oil, copper and gold, represent a major potential in export earnings. Industrial Info is currently tracking 42 projects in PNG, which total more than $38 billion in investment value. Out of the 42 projects, 27 are metals and minerals projects and 12 are oil and gas production projects.

Xstrata Copper Asia Pacific (ASX:ZXT) (Toowong, Australia), in a joint venture with Highlands Pacific (ASX:HIG) (Boroko, PNG), awarded the engineering, procurement and construction contract to Bechtel International Incorporated (Brisbane, Australia) and have continued detailed design and a bankable feasibility study for the Frieda River aboveground copper gold mine and mill. The project will see the construction of a 60 million-metric-ton-per-year (MM T/yr) open pit mine and processing plant to produce 240,000 tons per year of copper and 319,000 ounces per year of gold. The $4.5 billion project will utilize two grinding circuits and a conventional copper concentrator. Concentrate will be transported to Sepik River Port via a 74-kilometer pipeline. Completion of the feasibility study is expected by March 2013.

Morobe Mining is a 50:50 joint venture between Newcrest Mining Limited (Brisbane, Australia) and Harmony Gold Mining Company Limited (Milton, Australia), with a head office located in Lae, PNG. The Morobe Mining joint venture, with Ausenco Limited (Brisbane, Australia) and Clough Projects (Brisbane), continues detailed design for the Wafi-Golpu gold and copper mine and processing plant. Developers will construct an open pit and underground gold and copper mine at Wafi and an underground mine at Golpu, along with gold and copper floatation processing plant to process 22 million metric tons per year of gold ore and produce 600,000 to 800,000 ounces per year of gold and 300,000 to 500,000 tons per year of copper. The $4.2 billion project is scheduled to begin construction June 2014, and completion is expected in 2017.

Origin Energy Limited (ASX:ORG) (Sydney, Australia), together with Papua New Guinea Sustainable Development Program Limited (Port Morsby, PNG), is in a 50:50 joint venture continue with a prefeasibility study for a grassroot, 2,500-megawatts (MW) PNG Purari River hydroelectric power station. At Purari River, developers will construct tunnels and buildings and install hydraulic turbine/generator sets to supply renewable energy to the PNG electricity grid and export 1,700 MW to Weipa in Queensland, via an undersea cable. The $2 billion proposal includes an undersea transmission line through the Torres Strait. Construction, pending all approvals, is scheduled for November 2016 and project completion by May 2020.

PNG Floating LNG Limited (which is 34% owned by Petromin PNG, 33% by Hoegh LNG, and 33% by Daewoo Shipbuilding and Marine Engineering (DSME)) (Port Morsby, PNG) seek feedgas supply for a grassroot LNG floating, production, storage and offloading (FPSO) vessel. The $1 billion proposal will involve construction of a new FPSO vessel to produce 3 million metric tons per year of LNG. The project will source natural gas via PNG's mainland, with shore-based feedgas supply to be transported to LNG FPSO via subsea pipelines. Papua New Guinea National Executive Council has granted preliminary approval for the project to go ahead. Following final financial approval, Hoegh LNG and DSME will release bid documents. Construction kick-off is scheduled for June 2014, with project completion expected by June 2017.

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