Update on the Frieda River project November 2014- How Should PNG Deal with Rouge Company Pan Aust Ltd?
On the 2nd of September 2014 the National Executive council deliberated on a joint submission endorsed by the Treasurer , The Minister for Mining and the Minister for State enterprise and unanimously agreed in Decision 265/2014 signed by the Prime Minister to reject the Sales of the Frieda Mine by Xstrata to Pan Aust Ltd and for the State to exercise its rights as a partner in the Frieda Project to make a offer to Xstrata Glencore to acquire their interest on the same terms and conditions as agreed to between Pan Aust and Xstrata Lts reached on the 30th of September 2013 and to take over controlling interest in the Frieda Mine project.
Despite the Cabinet Decision and indeed the terms of the Transfer of Sales Deed between Pan Aust Ltd and Xstrata Glencore Ltd , which is conditional upon the approval of the Government of PNG to allow the sales to go forward, Pan Aust Ltd , Xstrata Glencore and Highlands Pacific Ltd continue to defy the PNG Government Position and instead proceeded to inform the Market that that it has obtained approval from the Government of PNG for the sale to proceed . These three companies have also misled a number of our State Agencies particularly the office of the State solicitor and the Mineral Resource Authority and the office of the Prime Ministers by alluding to the Fact that the Frieda project is in its Exploratory State and as such under our mining Act the project has not reached a stage where the Government of PNG can buy into the Project or exercise its rights to take up the mandatory 30% in the project as defined in our Mining Act .
These Rouge companies have gone further to obtain a purported letter from the Prime Minister to give comfort to this fallacy and to use the letter to hood wink a number of leading sate agencies . Well This position is incorrect . Feasibility studies to under pin the resource base of Frieda has been ongoing since 1968 when the ore body was first discovered. The Final report in 2012 by Xstrata puts a value on the ore body of over US$200Billion on Frieda with a CAPEX of US$6Billion to realize. Frieda is past the Exploratory Stage . In 2012 the Minister of Mines through the MRA granted a extension of EL58 for another 12 month Xstrata to look at the power supply options for Frieda as opposed to additional work relating to defining the ore body.
It is now 2014 and under the proposal by Xstrata a MDC [ Mining Development Contract] should have been entered into with the state this year. This however did not occur instead we have a clown of a company that has entered the mining scene in PNG by Stealth and using our own people and resources to pull the wool over the eyes of our leaders and bureaucrats and are now telling us that we cannot own and develop Freida and that some how they are now the new owners and that if we want Frieda we can only have 30% of it. Well again they are wrong. PNG can and must now take control over its non renewable resources and the Cabinet has spoken.
State Agencies are urged to maintain and comply with NEC decision 265/014 . Frieda Mine is the Largest reported undeveloped resource in PNG and all Agencies of the State and the office of the State Solicitor in Particular must take immediate remedial measure to deal with and protect the resources of our nation from falling into the hands of Selfish Predatory companies and individuals who thing that because PNG is a weak neo colonial State they can buy their way around in our country and use the ignorance of our State Agencies and leader to steal and rape our non renewable resources and to deal with our leaders and agencies of the Government with disdain and impunity.
The Attorney General , The Secretary of Justice and the State Solicitor in particular must wake up and be proactive in protecting our resources form Greedy foreign Companies and advice line departments to take preventive measures to protect our resources.
Under Australian and PNG stock market rules reporting false and misleading information to the stock market is an offence and State Agencies must deal with these rough companies by ensuring that do not continue to mislead our Leaders and the market and that the board of Pom Stock Market must immediately delist Highlands Pacific from trading and that IPBC as the Largest Shareholder in Highlands Pacific calls up its Board and suspend all dealings with Pan Aust Ltd in Particular until advised further by the state . That IPA further ensures that no transfers take place in the sale of Shares in Xstrata Frieda river Ltd to Pan Aust Ltd and the register of Mines does not transfer EL58 to pan Aust Ltd nor should it deal in any way, shape of form with EL58 unless directed by NEC[ National Executive Council].