frieda river: a nation-building project · 2018-07-09 · frieda river project update to the state...
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Frieda River – a nation-building Project | August 2017 Page 1
Frieda River:A nation-building ProjectNovember | 2017
Frieda River – a nation-building Project | August 2017 Page 2
PanAust overview
Frieda River – a nation-building Project | August 2017 Page 3Project Update to the State Team | 14 August 2017 Page 3
PanAust Limited
Australian-headquartered
Chinese-owned
Operating assets in Laos
Ban Houayxai Gold-Silver
Phu Kham Copper-Gold World-class development
project in Papua New Guinea
Exploration Licences in Myanmar Frieda River
Copper-Gold
Frieda River – a nation-building Project | August 2017 Page 4Project Update to the State Team | 14 August 2017 Page 4
Investment rationale
Established mining jurisdiction with a skilled workforce
Major resource sector projects including PNG LNG (US$19 billion)
PNG actively seeking foreign investment
Familiar operating conditions
Frieda River – a nation-building Project | August 2017 Page 5
Frieda River is approaching its
golden anniversary
Familiar operating conditions
Frieda River – a nation-building Project | August 2017 Page 6Project Update to the State Team | 14 August 2017 Page 6
1968 to 1986
Discovery and initial exploration phases
1986 to 2007
Exploration and pre-feasibility studies
2007 to 2013
Xstrata resource definition and study work
2014PanAust
acquisition
Frieda River – a nation-building Project | August 2017 Page 7Project Update to the State Team | 14 August 2017 Page 7
Excellent progress
2015 Study execution
2017 Value enhancements
Under PanAust’s management
2016 Feasibility study completed SML application lodged EIS lodged
2014PanAust
acquisition
2014 PanAust acquired an
80 per cent interest in the Project
Frieda River – a nation-building Project | August 2017 Page 8Project Update to the State Team | 14 August 2017 Page 8
Sepik River Port
Road and pipeline
Logistics/product route (707 km)
2016 Feasibility Study
Frieda River – a nation-building Project | August 2017 Page 9Project Update to the State Team | 14 August 2017 Page 9
Road and pipeline (330 km)
2018 Study Scope
Frieda River – a nation-building Project | August 2017 Page 10Project Update to the State Team | 14 August 2017 Page 10
Improving the value proposition
Power for the mine plus export
30+ year mine life
Shared-use infrastructure
Western economic corridor
2016 Feasibility Study 2018 Study Scope
17-year mine life
Sole-use infrastructure
Sepik River logistics route
Hydro-electric power plus fuel oil
Frieda River – a nation-building Project | August 2017 Page 11Project Update to the State Team | 14 August 2017 Page 11
Post-mining legacy 400 MW hydropower for 50+ years
Proven solutions
Issues Solutions
Sole-use infrastructure Shared-use infrastructure
Sepik River barging Western corridor road access
Downstream water quality Subaqueous deposition
Tailings and waste rock disposal Contained behind embankment
Frieda River – a nation-building Project | August 2017 Page 12Project Update to the State Team | 14 August 2017 Page 12
Value enhancements
Shared-use infrastructure to benefit other industries
Broader economic benefits for Sepik region and PNG
Lower capex and longer mine life
Improved mine plan and lower power cost
Frieda River barge offload facility and exploration access track
PanAust has invested
US$ 100 million since 2014
Updated HITEK and Nena Mineral Resource estimates
Frieda River – a nation-building Project | August 2017 Page 13
A nation-building Project
Frieda River – a nation-building Project | August 2017 Page 14Project Update to the State Team | 14 August 2017 Page 14Frieda River – a nation-building Project | November 2017 Page 41
Frieda River Copper-Gold Project
Developing a world-class copper-gold resource
A major foreign direct investment in PNG
Pioneering trilateral collaboration
Frieda River – a nation-building Project | August 2017 Page 15Project Update to the State Team | 14 August 2017 Page 15
A showcase for leading-practice mining
Design, engineering
and technology
Construction and project
management
International standards
Sustainability
Frieda River – a nation-building Project | August 2017 Page 16Project Update to the State Team | 14 August 2017 Page 16
No longer just a mining project...
Sepik Development Project
Frieda River – a nation-building Project | August 2017 Page 17Project Update to the State Team | 14 August 2017 Page 17
Sepik Development Project
Sepik Infrastructure Project
Linking:
Communities Markets PNG to Asia
Sepik Power Grid Project
Powering:
Mining Commerce People
Frieda River Copper-Gold Project
Creating:
Jobs Revenue Business opportunities
Frieda River Hydro-electric Project
Providing energy:
Renewable Stable Clean
Frieda River – a nation-building Project | August 2017 Page 18Project Update to the State Team | 14 August 2017 Page 18
Economic Impact Assessment
Large initial and ongoing capital investment
Substantial employment opportunities
Shared-use infrastructure model will drive economic growth
Major new revenue steam
Frieda River – a nation-building Project | August 2017 Page 19
Next steps
Frieda River – a nation-building Project | August 2017 Page 20Project Update to the State Team | 14 August 2017 Page 20
The way aheadProgress road development in Sandaun Province
Engage with potential infrastructure partners
Government-to-Government support as a flagship project
Secure PNG permits and confirm State participation
Create a conducive investment environment
Final Investment Decision and Project development
Frieda River – a nation-building Project | August 2017 Page 21