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].

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