I think that MGO should go the on shore tails impoundment route from the beginning and forget all about the DSTP option. Purely from a business perspective, the upfront cost of a tails dam is better than the ongoing spectre of legal challenges and delays to the project. The long life of the project also virtually guarantees that this problem won't go away, even after the mine is constructed , but will gradually gather the focus of environmental action groups , well funded, and from all over the world. I have worked on other similar projects in PNG, specifically Misima, Bougainville and Lihir, all of which use, or used, this technique,and Marinduque in the Phillipines, so understand the process well enough.It is clear that , although the science for marine disposal is reasonable, emotion will govern this issue , and sentiment is strongly against marine disposal of tailings.
I work in the industry ( metallurgist), and want it and MGO to do well . We are ill served by this decision as it gives the impression that the mining industry is still a bunch of cowboys who will ride roughshod wherever the laws of a country are weak. Hopefully we have moved on from this. It is possible to be enthusiastically a supporter of the mining industry and an investor AND environmentally responsible- it justs costs more money !
Seriously, would anyone even contemplate trying this in Australia, or Canada, or any developed country? You would be laughed out of the room.
MGO has a great, long life project and can be highly profitable with a land based tails dam as well.
Lets hope our CEO is factoring this in already.
MGO Price at posting:
21.0¢ Sentiment: LT Buy Disclosure: Held