natives are restless

PNG locals pitch up to leaders for Frontier
24Jun08

THE natives are restless in Papua New Guinea, and that's good news for Bundall-based minerals explorer Frontier Resources.

The company, which is embroiled in controversy over its plans to mine near the Kokoda Track, said yesterday that landowners were lobbying the PNG Government to renew frontier's exploration licence for its rich Kodu copper-gold deposit.

In a letter to the company, West Koiari Development Foundation chairman Kenny Abau said the landowners were not consulted by PNG mining minister Dr Puka Temu, who appears to have bowed to diplomatic pressure from Australia and failed to renew the licence.

He said it was 'disgraceful' that landowners' interests were put 'behind those of Australia and PNG'.

"Leaders from many of the western Koiari clans within the exploration licence are meeting and are in consultation with the Kodu deposit landowners to work out how we can positively affect the renewal of the licence," he said.

Landowners have been given a 5 per cent interest in the mine plus royalties, which could be worth up to $100 million to them over 10 years.

Frontier has consistently said the Kokoda Track itself may not be impacted by the mine for several years.

Frontier has yet to undertake a feasibility study which is a precursor to obtaining a mining lease.

The feasibility study could take 18 months to complete.

The project area is said to contain 2.4 million tonnes of copper equivalent, worth up to $9 billion on an in-ground value basis.

Frontier shares fell .1c to 5.4c yesterday.