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Fijians offer to train Bougainville police
By AUGUSTINE KINNA
THE four Fijians who left Bougainville last week after being freed by the court believe the Bougainville police force is very undisciplined and ill-equipped, and they are willing to come back and train them for a fee.
They were held in jail for almost two years for entering the country illegally and for allegedly being involved in trying to form an illegal army for conman Noah Musingku.
They were released after the public prosecutor failed to find enough evidence to convict them, even though they had themselves admitted to coming to work for Musingku for a promised fee of US$1 million (K2.9 million) each.
They said upon their release from custody, they were no longer interested in Musingku or his money, if he had any.
They called upon the fifth Fijian still with Musingku to give himself up to Bougainville authorities.
Seeing the performance of the island police during their time in custody, their spokesman Jolame Gukirewa said they are prepared to come back and provide professional training to the Bougainville police with emphasis on discipline.
He told The National in an interview after the release from the police cells that during their two yearsin Bougainville,they observed lack of discipline and commitment to duties from the police service personnel throughout the region.
Mr Gukirewa said the police service needed professional disciplinary training to be instilled into their programme for them to improve.
“My company in Fiji is more than prepared to come and provide such training to the police in Bougainville,” he said.
He said this depended on the Autonomous Bougainville Government (ABG) if it was interested in building a police service that would be appreciated by Bougainvilleans.
Mr Gukirewa urged Bougainville police personnel to perform their duties with honour as they are the flag-bearers of the region.
“Law and order in the region is getting out of hand and the police service cannot adequately control it ... that is one of the weaknesses the police must work on to improve,” he said.
T hey had noticed a lot of problems on policing, youths and law and order issues in the region that they could address if the ABG gave them a contract to provide the service, Mr Gukirewa said.
“Bougainville had been my home for the last two years and therefore, I feel obliged to come back and contribute to its improvement,” he said.
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Buka gets a new court house
By AUGUSTINE KINNA
MINISTER for Justice and Attorney General Dr Allan Marat and senior magisterial officials were in Buka to officiate at the opening of the new local court house yesterday.
The pervious Buka court house was burnt on Aug 17, 2002, leaving the court service unstable for five years.
The court house was then temporarily set up in Hutjena where court proceedings took place.
Now that the new court house has been completed, court services in the region would return to normal operations.
At a press conference at the Buka airport VIP lounge, Dr Marat announced that he was happy that the court house has been completed and ready for official opening.
He said Bougainville is still going through restorative development and therefore, peace and the rule of law has to be maintained in the region.
Dr Marat said as the minister responsible for justice, he wants to see that peace and order prevail in all communities in Bougainville.
“I want to see that the people of Bougainville live in a safe, secure and peaceful community where justice is in place to maintain law and order,” he said.
He said with the opening of the new court house, quality justice services would be provided to the people.
According to the head of AusAID in the country, Margaret Thomas, the AusAID, through the law and justice sector, is happy to partner with the Autonomous Bougainville Government to ensure that justice is maintained in the region.
She said the opening of the new Buka court house would symbolise the return of the rule of law.
Ms Thomas said AusAID has a lot of programmes to work with the government to maintain law and order.
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Minister ousted
THE National Court has voided the election of Minister for Education Michael Laimo.
Justice Ambeng Kandakasi ruled in Buka yesterday there were irregularities and illegal practices committed during the election last year, and voided Laimo’s election as Member for Bougainville South.
Mr Laimo, a National Alliance party man, defeated petitioner Steven Kami, a New Generation party candidate, by only 17 votes to retain the seat. He polled 6,046 votes to Mr Kami’s 6,029. Mr Kami challenged the election result on grounds that there were illegal practices committed.
In his ruling handed down yesterday, Justice Kandakasi said there were gross errors and omissions and illegal practices by Electoral Commission officials.
One of the illegal acts that was brought to the attention of the court was the setting up of a second polling booth in the Mongai area, in the No-Go Zone, where a supporter of Mr Laimo lived.
Records produced in court showed that 128 voters turned up and voted at that polling booth. This was shown by the names of voters crossed out on the Common Roll. But during counting of votes, 212 votes were counted for this booth.
The Electoral Commission was unable to explain were the 84 votes came from.
The court also found there were errors and omissions during counting.
The petitioner was able to establish that there were errors and omissions during counting and even the Electoral Commission’s own records like form 66B, showed glaring errors.
Votes were unaccounted for on the tally sheets, with errors pointed out in the second and third eliminations.
As a result, Justice Kandakasi ordered that the election of Mr Laimo is void, that 212 votes be excluded from Laimo’s final tally, and that a recount of votes be held within 30 days.
The judge was also critical of the conduct of the Electoral Commission during the elections.
Mr Laimo is the first casualty of the disputes filed in court after the 2007 elections.
Petitioner Kami said yesterday he was happy with the outcome of the court case.
“Honesty must prevail, and I call for calm among supporters as we await the outcome of the recount (of votes) ordered by the court,’ Mr Kami said.
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BCL still keen on Panguna mine
BOUGAINVILLE Copper Limited still has its eyes on Panguna as it completes work to understand the economics and technical challenges associated with the reopening of the abandoned mine.
BCL company secretary Paul Coleman reported to the Australian Stock Exchange that the company was continuing this work with its vision of a “return to active exploration and profitable mining”.
“While undertaking this work the company will continue to consult with a broad cross-section of the Bougainville and PNG community,” Mr Coleman said. Last year BCL undertook a comprehensive review of its exploration data aimed at defining targets and developing a work program in anticipation of being able to resume active exploration.
No company officials have been allowed into the abandoned Panguna mine since it closed in May 1989. This has prevented the company from working out the value of its assets and the costs involved if the Panguna mine would ever be reopened.
BCL has said that it would work together with the landowners to gather their support for exploration and mining.
Bougainville Copper Limited (BCL) is owned 53.58 per cent by world mining giant Rio Tinto Limited. The Papua New Guinea Government owns 19.06 per cent while public shareholders hold the remaining 27.36 per cent of the share capital.
Meanwhile, BCL has posted a net profit of K3.6 million for the year ended December 31, 2007 compared to K3.7 million it made in the corresponding period of 2006.
According to the report lodged with the ASX, there was a K22 million capital growth which together with the net profit equates to a 7 per cent increase in shareholder funds. The company said operating expenses also increased last year but the costs were offset by increased investment incomes.
BCL revenue increased by 9 per cent last year due to growth in dividends (plus 16 per cent) derived from the investment portfolio while general and administrative expenses grew by 10 per cent reflecting the nominal real growth in expenses, upward movements in PNG inflation rate and the PNG kina exchange rate fluctuations.
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Dieses Coleman Statement,kurz nach dem Somare/Kabui Treffen zeigt deutlich wohin der Hase laufen soll(te).Dass es zwischenzeitlich auch Gespräche zwischen BOC u. Kabui gibt die von P.T. als sehr konstruktiv bezeichnet werden lässt hoffen dass es demnaechst zu einer pos. Entscheidung vs.Wiedereröffnung kommt. ;-)))))))))))))))))))
Tuesday February 26, 01:48 PM
BCL reviewing PNG's Panguna mine option
The viability of reopening Bougainville's abandoned Panguna copper mine is being assessed with a view to returning to "profitable mining", the Australian Stock Exchange has been told.
The mine was closed in 1989 as the Papua New Guinea island descended into secessionist conflict sparked by landowner issues and the environmental damage the mine was causing.
Bougainville Copper Limited (BCL), which operated the mine, is reviewing the economics and technical challenges associated with reopening the abandoned pit.
BCL secretary Paul Coleman reported to the Australian Stock Exchange that the company was continuing this work with a vision to "return to active exploration and profitable mining".
No BCL company officials have been allowed onto the Panguna site since it closed.
The company has been looking at other mineral exploration options on the island that could involve opening smaller mines.
Coleman said the company was working on the issue of resuming mining with a "broad cross-section of the Bougainville and PNG community", the PNG Post Courier newspaper reported.
The new Autonomous Bougainville Government wants mining resumed on the island to bring in much-needed revenue but says that will only happen after full agreement from landowners and Bougainvilleans.
Thousands of Bougainvilleans died in the secessionist conflict during the 1990s before a peace accord was reached.
In another move addressing the challenges still facing the island, a new AusAID-funded courthouse was opened in the main town of Buka.
The project tackles law and order issues hampering the region and is part of the agency's ongoing program for Bougainville that since 2004 has provided $4.7 million.
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den aufmerksamen Zeitungslesern wird auch dieser Artikel nicht entgangen sein,
es gilt halt noch eine Menge Überzeugungsarbeit zu leisten,
und ich kann dem ESBC nur dringend zur maßvollen Zurückhaltung raten,
"Landowner warns shareholders of BCL’s mine plans
BOUGAINVILLE Copper Limited (BCL) shareholders have been told not to be misled by company officials over the abandoned Panguna mine.
Peter Kove, a chief from Guava village, just beside the mine, said yesterday the Panguna mine should not be used as “collateral” for BCL to shoot up its share prices on the stock markets.
Mr Kove, who is son of the late Mathew Kove, the first victim of the Bougainville Crisis, was responding to a report on BCL completing work to understand the economics and technical challenges associated with the reopening of the abandoned mine.
“Panguna land does not belong to BCL. It belongs to the landowners and it will not be re-opened,” he said.
“We the people of Panguna are not too concerned about re-opening the mine and BCL should consider how it will apologise to Bougainvilleans and exit the island in a good way.”
Mr Kove also warned BCL of so-called landowners from Panguna who had been frequently visiting Port Moresby and making statements about re-opening the mine.
“No one from out of the Panguna mining area is mandated to make comments on behalf of the landowners,” he said.
Mr Kove said the landowners were focused on reconciliations among themselves and they would need assistance for their reconciliation ceremonies, either from BCL or the Government.
Meanwhile, ABG Mining Minister Mathias Salas said yesterday while BCL was finalising its study into the possibility of re-opening the Panguna mine, the ABG was not being consulted.
Mr Salas said there were many legal issues to be sorted out before any mining could resume on Bougainville. He said the Panguna issue was no longer a landowner issue but it had become an issue for all Bougainvilleans as many lives were lost from what was created out of Panguna."
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ABG’s hand-hired firm projects queried
THE company selected by the Autonomous Bougainville Government (ABG) for a mining project is reportedly preparing to move into a range of other money-making projects.
Working through another business arm, Invincible Resources Corporation, the company that entered into a K20 million deal with the ABG, in its recent presentation to the regional government made references to other projects they were getting involved with which included fishing, marine products, petroleum and gas, timber and resources (logging) coconut and cocoa, tourism and hotels.
The ABG this week explained that this was only a proposal done by the company but could not go into details for reasons that were not explained.
They neither confirmed nor denied the latter, but papers obtained by this newspaper indicated the company, trying to have rights to all resources on Bougainville and incorporated in the Bahamas, was preparing itself for more of those projects in the region.
ABG and the Invincible Resources Ltd company signed an agreement which gave the mining company 70 per cent ownership, 15 per cent to the ABG, 9 per cent to the Veterans affairs and 8 per cent to the ex-combatants and the landowners — arithmetic that adds up to 102 per cent!
This week concerns were raised by the Bougainville arm that screens and authorises investment and businesses into the region about venturing into other businesses and not mining alone.
The ABG appointed mining office boss Steven Burain this week to look at mining issues in the region, however denied having any involvement in the deal so he could not comment.
Bougainville Administrator Raymond Masono also said he could not comment because he had played no part in the deal.
Invincible Resources executives would not comment but only said their involvement on Bougainville was purely to help teach Bougainvilleans how to do business.
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Alliance moots mission for peace in troubled south
A BOUGAINVILLE regional alli-ance peace mission is being proposed as the body to support peace efforts in the affected areas of Oria in the Wisai district and other parts of South Bougainville.
This has been supported by the chairman of the parliamentary sectoral and advisory committee on social development and veteran affairs, Marceline Getsi.
It is a move by North Bougain-ville veterans, churches, NGOs and likeminded peace makers to go on a peace mission in the south. This is after a violent incident in Buin recently.
Mr Getsi said the ABG had failed to deal with the situation.
The ABG has not identified options to protect the Bougainville peace process, he said.
“We will hold consultative meetings with the people of South Bougainville, especially in those affected areas including their leaders in the ABG. At the same time I am appealing to the leaders with skills on peace mediation to join the group on its peace mission,” Mr Getsi said.
Meanwhile, veterans representatives in the north said that if the leaders lose the support from their people, they should consider their political future in the Bougain-ville House of Representatives and BEC.
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PNG to promote mining in Canada
PAPUA New Guinea will showcase its mineral exploration and development potential to international investors and explorers next week in Toronto, Canada.
The 2008 Mining Convention and Trade Show of the Prospectors and Developers Association of Canada is the world’s premier international event for promotion of exploration and mineral investment potential.
The PNG delegation is being led by the vice minister for Mining Ano Pala, who will also be attending the three day annual world mining ministers’ conference.
He will be accompanied by senior officials from the Mineral Resources Authority (MRA) and the European Union funded Mining Sector Support Programme (MSSP).
Other members of the delegation include the executive director of the Chamber of Mines and Petroleum Greg Anderson, and senior executives of the state-owned Petromin Holdings Limited.
“The industry and the State through the former Department of Mining (DoM) have now participated in nine PDAC events (1997, 2001 – 2008), as we believe that PDAC offers the best overseas venue to promote and showcase our exploration potential to some of the largest companies involved in mine exploration and development, mine financing and investment”, said managing director of MRA Kepas Wali. The PNG Government through the MRA and the Chamber of Mines and Petroleum will be presenting a joint exhibition under the banner “Papua New Guinea”.
National program director of the European Union funded MSSP John Kulala is also optimistic about the possible outcome of this mining road show.
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Die Autonomiebestrebungen div.Provinzen ist sicher die grösste Gefahr für PNG als Staat.So wird jede übertragung von Miningrechten u. Shares ans ABG Signalwirkung haben.
NIP must try autonomy
I write to make a public inquiry as to where Sir Julius Chan’s proposal for New Ireland’s provincial autonomy bid is at present.
After the election declaration, Sir J proposed that New Ireland will work towards attaining certain autonomous powers.
We are yet to see a consultative committee set up or better still see any visible sign of this proposal lobbied by the members of Parliament of New Ireland on the floor of parliament.
Please Sir J, the time is now for New Irelanders to maximise their capabilities to realise their full potential.
Enough is enough of the childish Waigani politics. New Ireland must now consider greater provincial autonomy so that the social capital of our province in the form of our peace-loving culture and traditions is maximised for the benefit of our people.
The more we conform to the pollution and division that Waigani politics emits, the more we are getting nowhere.
The East New Britain Province has already set up a committee to advance its cause, what about New Ireland? Over to you Sir J.
Concerned Islander
Port Moresby, NCD
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Der Trailer kann hier angeschaut werden: War with no guns
DerAnalyst
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PNGDF denies arming faction
By ROMULUS MASIU
THE Papua New Guinea Defence Force was not arming any factions in the Autonomous Region of Bougainville.
That is the word from the army after Me’ekamui officials in Bougainville accused the PNGDF of supplying weapons and ammunitions to a certain faction on the island to wage war against them (Me’ekamui).
Me’ekamui leaders who were in Buka this week said the PNGDF must explain why they are supplying arms to the Wisai Liberation Front (WLF) who have taken up arms to fight the Me’ekamui faction in the Konnou constituency, Buin in South Bougainville.
They alleged that the weapons were brought to Buka on the CASA plane early last month.
However, a high ranking officer from the PNGDF headquarter in Murray Barracks out-rightly denied the allegations.
The officer, who asked not to be identified, said the PNGDF had no right and are in no position to do such things as it is against the Bougainville Peace Agreement.
He added that the CASA plane that landed at Buka airport in January had gone to pick up a ministry team comprising of PNGDF soldiers who were on the island during the festive season conducting Christian outreach programmes with locals.
WLF operations commander Philip Pusua also denied that the PNGDF was supplying his group with firearms and ammunitions.
“No one is supplying us with firearms and ammunitions. In fact we are buying firearms right here on Bougainville. The government has not collected all the weapons. Weapons are floating around, and I mean there’s a lot of them. I am very surprised to know that there are still many weapons on the market.”
Mr Pusua said his group is buying firearms from locals throughout the island region with the military issue M16 rifles selling for K8, 000 each in Central Bougainville and K4,000 in the northern region.
The former combatant could not disclose how many firearms they’ve bought already but only said ‘enough for a platoon’.
WLF is the latest armed faction in the troubled Konnou constituency following the footsteps of the earlier formed Bougainville Freedom Fighters who have taken up arms to oppose the armed Me’ekamui faction in the area.
WLF was recently formed after the gunning down of former Bougainville Resistance Fighters commander Jacob Naisy late last year at his Oria home.
When asked if there’s a possibility of laying down arms for possible peace talks, Mr Pusua said they will do so only if the Konnou Me’ekamui faction is disarmed.
“As long as they are armed, we are not putting down our weapons,” Mr Pusua said.
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Wenn du dich genauer mit BOC auseinandersetzen willst, empfehle ich dir die Lektüre der folgenden Internetseiten:
- Undervalued Shares, Swen Lorenz
Hier findest du eine äußerst lesenswerte 100-seitige Studie über BOC (Stand: 12/07). - The European Shareholders of Bougainville Copper
Viele Informationen und Hindergründe zu Bewertung, Pressemitteilungen, Video´s, Bilder usw ... - Internetseite des Unternehmens
DerAnalyst
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Donald Coxe ist der globale Portfoliostratege von BMO Capital Markets. BMO (Bank of Montreal) ist die größte Bank in Kanada und Donald Coxe wurde im Jahr 2007 zum besten Portfoliostrategen der Welt gekürt. Coxe ist seit 35 Jahren für institutionelle Kunden zuständig und seine Vorträge, gespeist mit einem unglaublichen Wissen bezüglich historischer Zusammenhänge und Ableitungen für die Zukunft, sind legendär. Hoch erfreut waren wir, als er den fast 1.000 anwesenden Zuhörern erzählte, dass wir gerade Zeuge von historischen Umwälzungen werden, die schon bald in die Geschichtsbücher eingehen werden. Bis circa 1800 n. Chr. waren China und Indien die führenden Wirtschafts– und Handelsmächte der Welt. Mit der industriellen Revolution, welche diese beiden Giganten verschlafen haben, hat sich dieses Verhältnis zu Gunsten Europas und der USA verschoben. Bis zum Jahr 2050 wird aber der „historische Normalzustand“, der sich auch aus der Bevölkerungszahl ableitet, wieder hergestellt.
Das ist soweit nichts Neues und Sie als treuer und aufmerksamer Leser unseres Börsenbriefes wissen dies natürlich längst.
Coxe ist der Meinung, dass der aktuelle Zyklus im Rohstoffsektor sehr viel länger dauern wird, als sich dies „alle Zuhörer in diesem Raum“ vorstellen können.
Während Rohstoffaktien seit Sommer 2007 vermehrt als „Risiko-Investments“ gesehen werden (wegen möglicher US-Rezession), prophezeite er, dass sich diese Ansicht bald um 180 Grad drehen wird!
Das neue Hoch im Kupfer und vielen anderen Rohstoffen dürfte diesbezüglich ein erster Weckruf für Investoren gewesen sein.
Revolutionäre Vorhersage:
Rohstoffaktien werden von Risikopapieren zum „sicheren Hafen“!
Coxe prophezeite, dass die derzeitigen Bewertungsabschläge der als „riskant“ angesehenen Rohstoffaktien sich in wenigen Jahren in Bewertungsaufschläge verwandeln werden!
Sprich: Wenn heute ein Rohstoffproduzent mit einem KGV von 8 bis 10 gehandelt wird, dann wird dieser in wenigen Jahren ein KGV von 15-20 und am Ende des Bullenmarktes gar von weit höheren KGV zugebilligt bekommen. Er schließt sogar ähnliche Exzesse wie bei den Technologieaktien Ende der 90er nicht aus.
Doch bis dahin seien wir noch mindestens 10 Jahre entfernt. Er ist sich sicher, dass dieser Umdenkprozess (dass Rohstoffaktien eben weniger riskant sind, als Technologie oder Finanzwerte und die meisten anderen Aktien) derzeit gerade angestoßen wird.
Coxe glaubt, dass die Annahme, Rohstofftitel seien kurzen Zyklen unterworfen, die größte Fehleinschätzung ist, welche im Markt vorherrscht. Aufgrund der gut 20-jährigen Baisse von 1980 bis 2001 seien viele Investoren bezüglich des neuen, langen Rohstoffzyklus immer noch skeptisch.
Hart ins Gericht ging Coxe mit der eigenen Analystenbranche. Die heute 25 bis 35-jährigen Analysten seien „Kinder der Technologiebubble“ Ende der 90er Jahre. Es gibt heute immer noch zig Mal mehr Technologieanalysten als Minenanalysten. Erst wenn sich dieser Trend in den nächsten 10 Jahren umgekehrt hat und jeder Uni-Absolvent am liebsten ins Bergbaugeschäft oder Minenbusiness einsteigen will, dann sollte man hellhörig werden. Aber davon seien wir noch „meilenweit“ entfernt.
Den US-Aktienmarkt (S&P 500) würde er schon aufgrund der Tatsache, dass darin nur 2 Rohstoffwerte enthalten sind, als klaren Underperformer der nächsten Jahre betrachten. Zudem rechnet Coxe, der Ende 2007 von Brendan Wood zum besten Strategen weltweit gekürt wurde, dass bei nun weiter steigenden Rohstoffpreisen bald eine weitere Übernahmewelle einsetzen wird. Besonders dann, wenn die Aktien weiter zum Teil auf „Rezessionsniveau“ verharren und die Schere zwischen Rohstoff– und Aktienpreisen weiter auseinander geht.
Vor allem im Goldsektor ist in den nächsten 12 Monaten mit einer massiven Konsolidierungswelle zu rechnen – die Capital Markets-Abteilung von BMO sei derzeit „very busy“ diesbezüglich! Je größer die Gesellschaft und die Reserven/Ressourcen desto größer werden die Bewertungsaufschläge bei Übernahmen ausfallen. Weltklasse-Liegenschaften von Explorern sollen nun immer mehr in den Fokus der großen Gesellschaften rücken.
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Fuel crisis hits Bougainville
By ROMULUS MASIU
MOTORISTS in Bougainville are resorting to kerosene to run their vehicles as the region experiences fuel shortage .
All fuel outlets have been hard hit with most completely dried up.
It is expected that there would be no vehicles moving about this week.
The ongoing problem stemmed from the National Maritime Safety Authority’s (NMSA) decision to ground all the vessels operating between East New Britain and Bougainville.
These vessels are responsible for transporting much needed cargo to Bougainville including fuel.
The vessels have been grounded since January after NMSA officers inspected the vessels and found them not sea worthy.
A highway driver from Buin told The National that he travelled from Buin to Buka on kerosene as there is no diesel anywhere including Buka town.
Other vehicle owners have also expressed same sentiments, saying they are now running on kerosene.
When asked if the kerosene would not do any damage to the vehicle engines, the highway driver Chris Tommy said it depends on the engine type and the distance the vehicle travels.
He added: “I don’t know what others think but I am running on kerosene and I travelled alright from Buin to Kokopau. Kerosene does the job like diesel and petrol.”
The only vessel frequenting the waters of Bougainville now is the Consort Express Lines (CEL) vessel, coming twice a month.
However, the CEL vessels don’t bring in fuel.
Those hit hard by the fuel crisis on the island region are PMV owners and passengers, road construction companies, public servants and business houses.
Some road construction companies upgrading roads on the island have already stopped work because of the fuel shortage.
Last Friday passengers, especially government workers were seen waiting at bus stops with only two PMV buses operating the Hutjena/Buka Town section of the road.
Most of the passengers from mainland Bougainville, especially from south and central, were left stranded in Buka town as highway PMVs could not travel for lack of fuel.
“We are stranded now in Buka and could not travel to Buin because of the fuel shortage problem,” Buin man Linus Konukung told The National last Friday.
It is understood the vessels found not sea-worthy by the NMSA inspectors have been ordered to the dry dock for maintenance and would not be available for at least a couple of months.
The shipping company owners, who are mostly Rabaul-based, could not disclose when exactly their vessels would be ready to operate but confirmed they are under maintenance as directed by NMSA and would take quite some time to be fully operational.
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Lihir spends big on upgrading
PERTH: Lihir Gold Ltd executives on Friday gave the green light to spending $US696 million (K2.0 billionillion) upgrading the plant at the gold producer's Lihir Island mine in Papua New Guinea, lifting annual production capacity to about one million ounces from 2011.
The market welcomed the news, sending Lihir shares 35 cents (97 toea), or 8.75 per cent, higher to $A4.35 (K12.16). “The upgrade, approved by the board of directors today, has been the subject of a rigorous 12-month feasibility study which concluded that it would provide a robust return, positioning Lihir for increased output, lower cash costs and more reliable and consistent production,” the company said. Lihir said the upgrade will lift gold production by an average 240,000 ounces per year.
Output for the decade from 2011 to 2021 is expected to rise by 2.35 million ounces to more than 10 million ounces. Construction is scheduled to be complete mid-2011 and once commissioned, the upgrade will reduce production costs by about $US80 (K235.29) per ounce. The company said operating cashflows will be boosted and there will be a significant uplift to net present value.
Chief executive Arthur Hood said the expansion represented a major step in the development of the company.
“This upgrade will lift the Lihir Island operation to the appropriate scale to extract full value from the 23 million-ounce gold deposit,” he said. “We already mine more than one million ounces of gold each year at Lihir, of which we have traditionally processed approximately 600,000-700,000 ounces, with the remainder stockpiled. “This investment in additional processing capacity will allow us to match our processing throughput rates with our mine production, reduce stockpiling of ore, enhance returns to our stakeholders and become a more reliable and consistent producer over many more years of operation at Lihir Island.”