The Papua New Guinea Mining Advisory Council has deferred the renewal of a lease to Australian company Frontier Resources Ltd to mine the Kokoda Trak.
“The council has resolved to defer the renewal of the lease pending consultations with all stakeholders so to reach a common understanding on the issue prior to advising the mining minister,” PNG Mineral Resources Authority (MRA) managing director Kepas Wali stated in a public notice published in PNG’s daily newspapers.
Plans by the Australian company to mine the historical track has come under fire within and outside PNG with the Australian government leading the push for the area to be put on the World Heritage list””a campaign which Frontier Resources Ltd managing director Peter McNeil reportedly said would be unsuccessful as he was of the view the track would not fit the criteria.
Wali said the council met last month to consider the application by Frontier Resources Ltd subsidiary, Frontier Copper (PNG) Ltd, to renew exploration license 1348 at Mt Bini in Central Province.
But it decided to defer its decision pending the outcome of an urgent meeting between all disputing parties tomorrow in Port Moresby.
“The leaseholder’s exploration activity adjacent to the Kokoda Track at Mt Bini has raised concerns from parties with interest in the track, given the historical significance of the Kokoda Track and its tourism potential,” Wali added to justify the council’s decision to defer its decision.
The MRA has sent out an invitation to representatives of 20 parties with vested interest in the matter to attend the meeting.
First on the list is the director for Frontier Copper Ltd, followed by the Australian high commissioner to PNG Chris Moraitis, Chief secretary to government Isaac Lupari as well as various landowners of both the proposed mine site and the track.
Landowners, who will directly benefit from the proposed mining operation, have warned they will shut down the track if Frontier Resources Ltd is stopped.
“Kodu landowners own about 10 per cent of the Kokoda Track and have indicated to me that they will close it down if any government interferes with their right to improve the lives of their people through the possible development of the Kodu Deposit,” said McNeil at the PNG mining seminar last month.
The Mt Kodu deposit, which is located about 400m east of the Kokoda Track at its closest point, has an estimated value of AU$1.7 billion.
Frontier Resources Ltd has 100 per cent interest in three exploration licenses in PNG including the Kodu deposit resource, which was found in an area adjacent to the 96 km Kokoda Track.