Grassroots exploration in PNG hits $US30m: World Bank

Grassroots exploration in PNG hits $US30m: World Bank

by Jesse Riseborough - http://www.pngindustrynews.net/StoryView.asp?StoryID=56949

7th April 2006

WORLD Bank project director Dr. Graeme Hancock says the attractive fiscal regime recently implemented in PNG has resulted in a dramatic increase in exploration expenditure in the country, with 2006 grassroots exploration expected to hit $US30 million ($A41 million).

Speaking at the Paydirt's Gold Conference in Perth on Thursday, Hancock gave a general overview of the mineral prospectivity of PNG and also a review of the significant new projects due to come online over the next few years.

Hancock, who has worked in the minerals sector in PNG for 16 years, said following the successful commissioning of Highlands Pacific's Kainantu operation earlier this year, the next two major cabs off the rank will be the massive Ramu nickel-cobalt project and Harmony Gold's Hidden Valley project.

Construction at Ramu is due to start by the end of the year while first production from Hidden Valley is due in 2008.

Hancock also revealed the PNG Government was currently undertaking a review of the Mining Act, which will see the length of tenure for an exploration licence in the country extended from two to five years.

Hancock said this would act to reduce concerns over the security of tenure in PNG.