The possible size and shape of a re-opened Panguna mine have been outlined by Bougainville Copper Limited (BCL) in an Order of Magnitude Study (OMS). The OMS shows a mine that, if given the go-ahead, could have a longer life than the previous Panguna operation, which operated from 1972 to 1989.
The base case, the minimum expectation for a BCL operation at Panguna, has a conventional truck and shovel open pit mine with an expected life of 24 years. Copper-gold concentrate is expected to be produced from ore at a rate of 60 million tonnes per year. A challenge for the project would be the expected capital cost of US$5.2 billion.
Included in this a cost allocation for general infrastructure that includes a mine training college, primary & secondary school facilities, hospital & medical centre upgrades, recreational facilities, commercial centre upgrade, policy, fire & emergency services, airport, port, waste management facilities. Power generation would be achieved through coal or gas rather than heavy oil, with power also supplied to non-mine areas. The OMS considers a number of on-land and deep sea tailings systems, the remains from the production of copper-gold concentrate. Stakeholders in a new Panguna operation, including elected representatives of landowners in mine-affected areas and senior officers and advisors of the ABG, have been given updated briefings on BCL’s OMS.
BOC Price at posting:
51.0¢ Sentiment: ST Buy Disclosure: Held
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