securing an enduring social license to operate at …...2017/08/09 · securing our social licence...
TRANSCRIPT
Securing an enduringsocial license to operateat Frieda River
PanAust Managing DirectorDr Fred Hess
PanAust Limited
Australian-headquartered
Chinese-owned
Operating assets in Laos
Ban Houayxai Gold-Silver
GRAMPhu Kham Copper-Gold
Development Project In Papua New Guinea
Exploration Licences in Myanmar
Frieda River Copper-Gold
The Frieda River Copper-Gold Project
Frieda River Copper-Gold Project
PanAust holds an 80 per cent interest in the Frieda River Copper-Gold Project with joint venture partner, Highlands Pacific holding the remaining 20 per cent.
The Frieda River Copper-Gold Project is in a least developed area of Papua New Guinea and is poised to provide a substantial boost to Sepik economies.
Project status
Feasibility study
completed
Application for a Special
Mining Lease submitted
Permitting and approvals
Pre-conditions for
development met
FINAL INVESTMENT
DECISION
Project status
Feasibility study
completed
Application for a Special
Mining Lease submitted
Permitting and approvals
Pre-conditions for
development met
FINAL INVESTMENT
DECISION
Why hasn’t the Frieda River
Project been developed yet?
Great resource burdened by remoteness and a lack of
infrastructure
High capital costs associated with supporting infrastructure
Perceptions of risks in PNG
How will PanAust unlock the Project?
Not just a mining project. A nation-building opportunity and
mining is only one element.
Broader and stronger positive economic benefits that will drive socio-economic
development
…and securing an enduring social licence to operate
Protect the Project from disruption
Stakeholders should have ‘skin in the
game’
Minimise cash handouts where
possible
Benefits flow when impact occurs
Benefits to those impacted by the
project
Deliver development with existing partners
Build governance capacity
Benefits commensurate with level of impact
Minimise discretionary spend Align with key Project milestones
Build local capacity
Strong law and order
Provide enduring uplift for current and future generations
Focus on vulnerable groups
Securing our social licence to operate
Tailoring our approachLand dispute settlement
Resolved land ownership through a benefit sharing arrangement and formula
Community developmentPrograms focused on core pillars of health, education and law and order
– skilful, healthy and safe –
Capacity building in our communitiesGetting ready for meaningful participation
at the development forum. Managing expectations and clarifying
benefit streams.
Benefits: empowerment
versus obligationWe want to empower our communities
and generate sustainable socio-economic development.
Priority areas for our landowning communities are ‘bread and butter’: health, education, jobs and training, security and safety, culture and environment.Quality of life is a higher priority than ownership of a mining project and the risks that entails.
Important to take a holistic approach and ensure benefit streams continue to the overall objective:• Holding equity in major projects
creates substantial and immediate financial obligations
• No revenue in early years• Financing equity participation is
difficult• History of equity participation is
chequered
The Way Ahead
The Project can only be developed in partnership with communities and the government
Benefits will only be sustainable if the
Operation is successful
Frieda River is not a replacement for
government
Thank you
Important notices
This presentation has been prepared solely for informational purposes and not as specific advice to any particular party or person. The information is based on publicly available information, internally developed data and other sources. No independent verification of those sources has been undertaken and where any opinion is expressed in this presentation it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. PanAust Limited (Company) disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in, or omission from, the information contained in this presentation.