OPINION: PORT MORESBY: So the government of Papua New Guinea has gone ahead and granted a deep sea mining lease to Nautilus Minerals to develop its copper-gold project in the Manus Basin. We are told that the 20 year lease covers an area of about 60 square kilometers around the Solwara 1 project.
The stretch of sea in the Manus Basin is very deep but, again, we are led to believe that Nautilus, using state-of art- technology, has been exploring the sea floor for mineral deposits.
And from the studies, the project aims to produce about 80,000 tonnes of copper, along with 150,000 to 200,000 ounces of gold annually from the project.
We are told that the project is estimated to cost about K1.04 billion and the PNG government has retained an option to take up to a 30 percent stake in the project as a joint venture partner. This option, we understand, is exercisable within one month. Should the government decide to exercise this option; it will contribute funds to the project in proportion to its interest, including its share of the costs incurred to date.
It is quite interesting to read that the government is interested in taking up equity in the seabed mining project.
The idea might be noble, given that we all like to make some money in any resource project that takes off in this country, however deep sea mining is something new. It is a new frontier as there are not many projects like this around the world that we can learn from.
The Minister for Mining, John Pundari and his department must come clear and tell us if we, as a country, understand what we are entering into. The people of this country have a right to know before the government squanders tax payer’s money on, what we firmly believe, is an ill-informed decision.
It is public knowledge that exploration activity has been pursued in the Manus basin by Nautilus and its joint ventures partners for some years.
From this work, the assay values of surface samples collected through remotely operated vehicle and dredging looks promising.
This is confirmed by independent expert opinions we have sought. The same experts tell us that similar conclusions are also drawn for samples collected through shallow exploratory drill holes but the most important question is whether it has sufficient reserves or resources to develop a seabed mining.
We are informed that from submersible observation of submarine hydrothermal deposits around the Pacific Rim and East Pacific Rise, it is recognised that the distribution of the sulfide chimneys or sulfide mound are irregular and it is quite impossible to do block modeling to quantify the resources.
Furthermore the super high grade does not quantify a resource to make it economical viable, we are told. When we go back a few years ago, drilling of the Pacmanus site in Manus Basin by Ocean Drilling Program (ODP) failed to discover massive sulphide deposits below the chimney structures. This is found to be true in similar observations that are made at other sites around the world.
What Papua New Guinea needs to know is whether there are sufficient resources in the Solwara 1 project for the government to be talking about taking equity in the project?
This is a question that needs to be addressed by the geological informed staff of the Minerals Resources Authority (MRA) and the Department of Mining.
The other question we have that needs to be answered as well is the high lead and arsenic content in the sulfide chimneys in the Manus Basin.
Did MRA did a due diligence check on the environmental implication for such heavy and toxic elements? We urged the government not to be deceptive when it comes to dealing with resources on the ocean floor.
We are talking about hard rock and it is not manganese noodles or submarine placer deposits like those of the West African coast where it can be easily mined by dredging.
PNG grants first deep sea mining lease in ‘risky new frontier’
Pacific Media Watch
