Ann: PanAust to acquire majority interest in Frie, page-25

re: Ann: PanAust to acquire majority interest... IPA should reject the offer by a junior Player Pan Aust Ltd to Buy a Controlling Interest in Freida.
By GABRIEL RAMOI
There is an application pending approval at IPA for junior Mining Company Pan Aust LTD to buy majority Interest in the Freida Mine for US$25 million. This development is unacceptable and the Prime Minister and the Minister for Mines ,Commerce and State Enterprise must summon Xstrata –Glencore forthwith to explain the nature of the arrangement with Pan Aust Ltd The Government of PNG by law has the right of First refusal to acquire the interest of Xstrata - Glencore and must outlay the US$25 million to take over the controlling interest in Freida now and Develop the mine itself as it is now doing in OK Tedi and safe guard the wealth of the nation and not allow Foreign Carpet Beggars to pull a wool over our eyes.
It is obvious what is being schemed here. Pan Aust Ltd is a company that is under Capitalised and is incapable of raise US$6 Billion which is the estimated development cost in bringing Freida Mine into Production without sovereign backing from the PNG Government. It is obviously a plot by pan Aust Ltd to basically take over the sunk cost outlayed by Extrata and to on sell Freida back to the PNG Government in the not too distant future for an exorbitant profit.
The development cost of Freida is estimated to cost $6 Billion and the PNG Government is capable of taking 100% Control of Freida and can use a number of Financing Models to get Freida into production and to ensure majority of the Profits remain in the Country to meed the critical social agendas of the Nation. It can for instance enter into a production sharing Agreement or enter into a Mining Contract with a known Mine Contractor to mine Freida on its Behalf for a fee.
The PNG Government is also now better placed to utilised export Credit Financing to get Freida off the ground and does not need companies like pan Aust Ltd to run rings around it. This year alone we have witnessed Nautilus Minerals trying the same trick on the PNG Government and now Pan Aust Ltd . Obviously the view that everything in PNG is available for a price seem to attract the wrong kind of Resource Companies in recent times to enter PNG and using our Local compradors to scheme the nation of its resources.

It is now time for the Government to stand and take control over the wealth of the nation and to tell companies such as Nautilus and Aus Minerals to go and jump. Enough is Enough