Major blow to Frontier with PNG refusal on exploration lease

first_imgPeter McNeil Managing Director of Frontier Resources says the company “is disappointed to announce that EL 1348 (containing the Kodu copper-goldmolybdenum deposit) has been officially refused renewal by the Minister of Mining for Papua New Guinea. No reasons were given. Security of licence tenure is fundamental to mining/exploration stability and this decision is a major blow to PNG’s Sovereign Risk. The Company has made every conceivable compromise to ensure the best outcome for all stakeholders, including offering to relinquish ‘all’ the original Kokoda Track in the EL and 5% carried equity in the project to landowners, plus 2% to the ‘Kokoda Track Authority’. In addition, an independent Initial Environmental Assessment showed there is no danger at all to Port Moresby’s current or future water or power supplies and general environmental concerns can be effectively ‘managed’.“The EL 1348 landowners last week threatened to again close the Kokoda Track until the El is renewed. Landowners indicated this morning that they are still likely to continue with their plan to close the Kokoda Track in protest of the decision. Frontier thanks the various landowner groups of EL 1348 for the positive working relationship that has existed over the last 4.5 years and their support, understanding and commitment to the project and management wish them all the best in their endeavours.“Frontier will now move post- haste to initiate legal proceedings in the courts of Papua New Guinea to recoup sunk expenditure of approximately K8.5 million (~A$3.2 million), plus lost potential future profit, likely of the order of approximately K8 billion (~A$3 billion). Frontier confirms that it will honour its original ‘equity commitment’ to Kodu (and Elo) landowners and will give them 5% of any ‘lost potential future profit’ that may be awarded. Legal options against the Commonwealth of Australia will also be evaluated, including the possibility of a class action lawsuit by shareholders.last_img read more

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FLSmidth supplies grinding mill for Katanga Mining operation

first_imgFLSmidth has provided Glencore’s Katanga Mining operation in the Democratic Republic of Congo (DRC) with a new 7 m grinding mill. Katanga Mining operates a large scale copper/cobalt project with substantial high grade mineral reserves and integrated metallurgical operations and the new grinding mill will  be delivered ex-works together with associated equipment. It is likely to be commissioned in the third quarter of 2014 at the mine’s copper KCC concentrator plant.The new equipment will be commissioned into an existing milling plant at the Katanga concentrator, in which multiple AG and ball mills already operate. Terence Osborn, Minerals Capital Sales and Marketing Manager at FLSmidth says the new grinding mill will boost plant reliability and enable production throughput predictability. “It has been well proven to be high quality and reliable equipment, and we have a growing relationship with this client,” Osborn says. In addition, Katanga Mining will implement FLSmidth’s proprietary Process Expert System (PXP) advanced process control mill optimisation package. This high level process control solution is a proven method to simultaneously reduce cost and improve product quality. “The mill is running in closed circuit with hydrocyclones and we’ve developed software that takes the milling plant operation into account holistically,” Osborn says. “Having expert knowledge of mill circuits, we’re in an ideal position to ensure that the whole system runs in a well-balanced and optimal manner harnessing PXP to achieve a consistent throughput.He added: “Achieving consistency is particularly important at this operation, since test work data indicates that the ore from this project will be variable from a hardness perspective and this always makes mill circuit control more challenging. The best way to maximise plant productivity is to maximise stability. By running the plant as consistently as possible, the mine will achieve a better quality downstream product.”last_img read more

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