Png Mining Chooses Sustainable Energy

PNG mining chooses sustainable energy

by Jesse Riseborough, Environmental Management News

14th March 2006

IN a move said to potentially pave the way for additional sustainable energy projects in PNG, landowners within the massive $US1 billion Ramu nickel project area have signed a deal with PNG Sustainable Energy for development of a hydro-powered facility.

The two landowner companies, Bina Holdings and Angori, signed the deal in Port Moresby last week, according to the National newspaper.

PNGSE is 50% owned by PNG Sustainable Development Program. Australian engineering firm Snowy Mountains Engineering Corp (SMEC) will reportedly be responsible for developing the Ramu hydro-power project.

PNGSE chairman Rod Sims told the paper a feasibility study, assessing all the potential rivers systems for the facility, would begin shortly.

Sims said the deal paved the way for PNGSE to begin working with additional landowner groups in PNG to look at other potential hydro-power facilities. Given the current high price of diesel fuel, hydro power was becoming increasingly attractive, according to Sims.

SMEC, based in Cooma, New South Wales, recently signed an agreement with PNGSE to "investigate, finance and develop a series of projects based on small-scale hydro power, geothermal energy and other sustainable energy sources".

SMEC said it had been involved in a broad range of PNG projects in recent years, including road and bridge maintenance, port development, airport rehabilitation and water transport.

The company has a local subsidiary in Port Moresby that employs largely PNG nationals.

The Ramu hydro project will also reportedly supply power to the Ramu nickel mine, a joint venture with state-owned Chinese company MCC (85%) and Brisbane-based Highlands Pacific (8.56%).

But Highlands managing director Ian Holzberger told PNGIndustryNews.net he was unaware of any proposal for a hydro-powered facility to power operations at Ramu.