In that epic battle for world copper supremacy

PNG govt must exercise better control over its own resources

buy canada goose jacket cheap A Britten Norman Islander, the first plane to land at Frieda River in 1970. Kiap John Pasquarelli had discovered gold and copper in 1963. Now, 55 years later, the mine is still undeveloped and the object of great controversyWEWAK Resources firm Pan Aust (wholly owned by the Chinese state company, Guangdong Rising Assets Management, GRAM), has lost its way with the Frieda River copper gold project in Papua New Guinea’s Sandaun Province. buy canada goose jacket cheap

Canada Goose Jackets It is now time for the PNG government to exercise leadership and rein in control over the Frieda asset if the PNG is to sustain its free education and health policies and lift the rest of the country out of poverty, disease and ignorance. Canada Goose Jackets

The view from Frieda is now very different compared with canada goose outlet online store the corporate carnage of 2013 following Glencore’s hostile takeover of Xstrata Mining. In that epic battle for world copper supremacy, Mike Davis’s Xstrata lost to Ivan Glasenberg’s Glencore and canada goose outlet location with it went a chunk of PNG’s national asset, the K260 billion Frieda mine.

canada goose Glasenberg has gone on to become the king of copper and head of the number one mining house in the world. canada goose

canada goose store But then, for canada goose outlet paypal a deposit of just K80 million, canada goose jacket outlet toronto little known Australian miner Pan Aust Ltd moved in and acquired Frieda from Glencore while PNG government advisers and ministers slept on the job despite warnings from industry that the government should exercise control and reclaim ownership over its strategic asset. canada goose store

Canada Goose online Pan Aust went on to the sell out to GRAM in 2015 for a reported K1.2 billion although officially the deal was closed at K450 million. Canada Goose online

cheap Canada Goose GRAM is owned by the municipality of the city of Guangzhau in southern China, although the deal maker in this transaction was a leading Australian Chinese billionaire Dr Chau Chak Wing, the subject of a current controversy because of allegations that he is an agent of the Chinese Communist Party. cheap Canada Goose

buy canada goose jacket Additionally, the influential South China Morning Post reported in September last year that the chairman of GRAM, Li Jinming, as well canada goose outlet online as the CEO and chief financial officer had been arrested and are facing prosecution in China for failing canada goose outlet website legit to account canada goose outlet new york city for a number of acquisitions made by GRAM in Australia, including Pan Aust, leading to a loss by GRAM of canada goose outlet washington dc more than K3.2 billion. buy canada goose jacket

None of these corporate maneuverings went unnoticed canada canada goose outlet goose outlet in chicago by the government of China and eventually Glencore was forced to sell a number of its copper assets to China in order to keep selling its copper ore to the communist country.

Canada Goose Outlet I suspect the sale of the Frieda copper mine may have been part of an arrangement between Glencore and the government of China for a number of its assets to be sold to Chinese controlled companies. Canada Goose Outlet

canada goose canada goose jacket outlet coats on sale Pasquarelli the day he discovered the Frieda prospect on 22 November 1963 canada goose coats on sale

I suspect the real reason for this is that Pan Aust does not have the required capital to follow through with the development of canada goose outlet online uk Frieda Mine since the arrest of the GRAM executives in China and the freeze on GRAM’s activities pending finalisation of court proceedings in China.

canadian goose jacket Pan Aust and its junior partner Highlands Pacific are already in arbitration over the issue of the costs relating to each partners contribution to the feasibility study. canadian goose jacket

canada goose black friday sale In the wake of this total mess, an opportunity exists for the PNG government to open dialogue directly with the government of China to revisit the Frieda project. canada canada goose outlet winnipeg goose black friday sale

Already two leading Chinese state companies China Energy Engineering Ltd and China Railway Yunnan Construction Development Ltd have expressed interest in developing the infrastructure associated with the mine.

The PNG government and the provincial governments of West and East Sepik the ministers of the two provinces in particular canada goose outlet uk sale should take the lead in opening dialogue with China on the Frieda project.

Canada Goose sale How the canada goose outlet boston Frieda project will be developed is part of the unfolding resource war being waged worldwide between private capital (represented by figures such as Glasenberg, Donald Trump and Malcolm Turnbull) and powerful state canada goose outlet ottawa actors such as the gvernment of China and other savvy emerging states such as Russia and Indonesia. Canada Goose sale

canada goose clearance sale The leading US based mining journal Behre Dolbear reported last week that the Republic of Congo, Ghana, Tanzania, Zambia and Mauritania have recently enacted new legislation apportioning greater revenues from mining in favour of the state to the rejection of Barrick Gold in Tanzania and Glencore in Congo. canada goose clearance sale

Canada Goose Parka Over the last six months we have also seen the rise of resource nationalism canada goose outlet new york in Indonesia with a direct challenge to BHP Billiton and Freeport Copper to divest up to 51% of their interest in the Grasberg mine to the Indonesian state. Canada Goose Parka

At the time of writing, BHP has agreed to sell its 40% stake to the state and current negotiations continue on the quantum of compensation for environmental pollution by Freeport.

While there is a much kneejerk reaction by our neighbours about Chinese checkbook diplomacy in the region, it must be remembered that China is Australia’s number one trading partner.

canada goose clearance Despite just 70 years ago China being rolled over by Japan after a long period of being pushed around by colonial powers, it has emerged in recent times as a canada goose outlet niagara falls super power extending its hand of friendship to countries around the world as it builds a new world order with itself at the centre. canada goose clearance

canada goose deals “Developing canada goose outlet buffalo countries where 90% of the world lives are at a crossroad,” says the leading black African woman of our generation, Zambian economist, lawyer and banker Dambisa Moyo. “They are facing a choice between the United States model of democracy and private capitalism or the Chinese model of state capitalism and no democracy.” canada goose deals

canada goose coats This may be too unequivocal as many third canada goose outlet store quebec world countries including PNG are now better poised to consider bartering our copper, gold and other mineral wealth for infrastructures such as roads, ports, railways, universities and hospitals rather than simply allowing private canada goose outlet toronto location capital through direct foreign investment. canada goose coats

Our experience over 40 years has been dismal as highlighted by reports such as that by Jubilee Australia. As PNG struggles to build its next generation of mines, the young lawyers and technocrats advising our leaders must take it canada goose outlet orlando upon themselves not to repeat the mistakes of the past but to look at recent deals between China and a number of counties in Africa and negotiate a new mining development contract for PNG that we all can be proud of.