Interesting article posted under the FNT thread from polly2006. Dates back to 16 Feb but provides interesting speculation. I wonder if anything has now changed given recent resource upgrade to 660 Mil tonnes.
China May Invest in Copper, Gold Projects in Papua New Guinea
By Tan Hwee Ann
(Bloomberg) -- China Metallurgical Group Corp., building the $800 million Ramu Ramu nickel mine in Papua New Guinea, wants to invest in copper and gold projects in the Pacific nation, the nation's mining minister said.
The Chinese government-owned construction company may hold talks with mining companies holding tenements in the Pacific nation, Sam Akoitai, Papua New Guinea's mining minister, said in an interview yesterday. It isn't seeking exploration permits.
China is building strategic reserves of commodities to secure supplies for its surging economy and has nominated copper as a top priority. The fastest-growing major economy is seeking investments in mines in Australia, Africa and Latin America.
``They are now building Ramu Ramu, and they want to move into gold and copper, especially copper,'' said Akoitai in Perth, Australia. ``Chinese companies have also shown great interest in looking at other investments potential.'' He didn't give details.
Wang Yongguang, vice president at China Metallurgical in charge of resources development, declined to comment from Beijing.
Harmony Gold Mining Co., the world's fifth-largest gold producer, last year said it may seek partners to help develop the Wafi copper and gold deposit in Papua New Guinea at a cost of as much as $1 billion. Chief Executive Officer Bernard Swanepoel said Asian companies are among nine interested in a partnership.
No Discussions
Projects under study in the Pacific nation include Marengo Mining Ltd.'s Yandera copper-molybdenum project and Frontier Resources Ltd.'s Kodu copper-gold deposit. Frontier's Managing Director Peter Mcneil and Marengo's Managing Director Les Emery, both said today they haven't held discussions with Chinese companies.
``We're doing our pre-feasibility study now, and we're looking for a right mix of partners,'' said Emery in Perth.
Xstrata Plc., the world's fourth-largest copper producer, last month said it will buy an 82 percent stake in the Frieda River copper and gold project in Papua New Guinea.
Mining companies are expected to spend about $80 million a year on exploration in Papua New Guinea, up from $10 million in 2002, Akoitai said. South Korean companies are among those who have submitted exploration applications for minerals, he said, declining to name them.
Akoitai will meet with executives from China Metallurgical next week in Port Moresby to discuss working conditions at the Ramu Ramu mine. The country's department of labor and industrial relations last month told the Chinese company to improve conditions by Feb. 19 or risk the having the mine shut down.
Akoitai was in Perth for the Asia-Pacific Economic Cooperation mining ministers' conference this week.
China is building an emergency supply of crude oil and plans to expand that to metals and uranium. The country is the world's biggest consumer of copper, used in buildings, pipes and power generators.
MGO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
