The Asia Miner

JUL-SEP 2018

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 23 of 55

the asia miner • volume 15 • issue 3 22 REGIONAL FOCUS: PNG Mayur Resources (MRL) has been granted environmental approval for bulk sample extracঞon of coal in Papua New Guinea (PNG), as well as PNG's first verঞcally integrated lime and cement project. This is the first ঞme that the Conservaঞon and Environmental Protecঞon Authority (CEPA) has issued an Environmental Permit for coal bulk sampling in PNG to enable commercial grade shipments. The permit covers coal bulk sample extracঞon from EL1875, which is owned by the company's subsidiary in PNG (Waterford Ltd) and is situated in Gulf Province, including the Depot Creek project in PNG. The condiঞons of the permit include the submission and implementaঞon of a robust Environmental Management Plan (EMP). The Permit enables the provision of bulk samples of coal for market and end user tesঞng. The objecঞves of which would be to secure bankable and legally binding o\ake contracts with various Asian markets that have been seeking to secure coal for power generaঞon from PNG as an alternaঞve supply jurisdicঞon with the benefit of the coal being low in environmental contaminants. MRL Managing Director, Paul Mulder sees this as an exciঞng step in bringing PNG coal to the internaঞonal market as a potenঞal new source of energy coal. "The coal from PNG is aracঞve as it possesses very low in situ ash content of 3-10 per cent, sulphur of around 0.5 per cent, and tests to date have yielded good energy values without the need for washing," said Mr Mulder. "Therefore, this type of thermal coal has strong demand in Asia. It is of superior quality and cleaner compared to, for example, much of the thermal coal that Australia uঞlizes for its own power generaঞon requirements. Coal sঞll provides most of Australia's criঞcal baseload power via the provision of reliable, affordable and sustainable electricity supply to support its first world living standards. Coal is also the dominant fuel source in China and India as well as in SE Asia." The bulk sampling test works will also help to confirm suitability of the coal for use in domesঞc power generaঞon. MRL other subsidiary (Mayur Power Generaঞon PNG Ltd) is also developing a proposed 50MW Mayur Resources scores a double 'first' in PNG power staঞon outside PNG's industrial port city of Lae at the Western Tidal Basin, and would propose to use largely domesঞc coal as a fuel source for this power staঞon. Lae currently suffers from chronic power supply issues and has significant reliance on burning diesel and HFO for its power needs. The Lae project aims to provide a new supply of baseload power and help the PNG government achieve its electrificaঞon targets of 70 per cent by 2030. Given coal has never been mined in PNG, any future producঞon and subsequent exports from PNG would represent just a ঞny fracঞon of the internaঞonal seaborne market that is dominated by the likes of Australia (exporঞng over 200 million tonnes per year) and Indonesia (exporঞng over 350 million tonnes per year). Moreover, for context, at 50MW the Lae power project is also very small by world standards and would only require around 300,000 tonnes of coal per annum. PNG'S FIRST VERTICALLY INTEGRATED LIME AND CEMENT PROJECT Adding to its cache, Mayur Resources was also granted CEPA for the development of its Port Moresby verঞcally integrated lime and cement project in PNG. The project, which is owned by the company's subsidiary in PNG Mayur Iron, is located on EL2303 situated in Central Province, approximately 25km north of the capital Port Moresby and 7km from the ExxonMobil PNG LNG plant and export terminal. The permit has been issued for quarrying of limestone and processing into quicklime, clinker and cement. The permit condiঞons and associated environmental management documents shall guide the project development acঞviঞes that include the extracঞon of limestone, processing of this material and the manufacture of quicklime, clinker and cement, together with the associated transport, uঞliঞes and other infrastructure. Following the delineaঞon of the Example of coal outcrop in Gulf province

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