Ramu deal needs ‘up to 12 months’
Copyright, 1999, Post-Courier Online (PNG)
November 2, 2000
THE joint venture partners in the Ramu project may need another 12 months to sort out all remaining issues relating to the project before actual work can start.
Highlands Pacific managing director Ian Holzberger told the Post-Courier this week the next important thing that needed to be sorted out was the State and Orogen Minerals Ltd options.
Earlier in the week, Highlands Pacific said in its third quarterly report that the State had announced its intention to take up a 30 per cent interest in the Ramu project.
Orogen Minerals has previously said that it would exercise its options in the Ramu project, which would see it acquire 25 per cent of the State’s interest at market costs.
The remaining 25 per cent would be transferred freely to the landowners.
Following these transactions, the project equity structure would be Highlands Pacific with 47.95 per cent, Orogen with 47.05 per cent and landowners with five per cent.
This could be reduced further when a third partner is introduced to the project.
Mr Holzberger said that following the finalisation of State and Orogen options, they would then introduce an extra major joint venture partner and then finalise financing for the project.
“Step one (finalising the State and Orogen options) needs to be completed before any meaningful progress will be made with step two (adding a new partner),’’ Mr Holzberger said.
“Financing will follow the resolution of the final joint venture structure. Realistically, it could take 12 months or so to complete the program of work in front of us.’’
The company said earlier this week that it now had all the permits it needed from the State, and had also signed all agreements it needed to with the landowners.
The leftover agreement with the Madang Provincial Government would be signed during this quarter.
It also announced that they had appointed Warrior, a division of Standard Bank, an international resources adviser, to help identify a new partner to join Highlands Pacific and Orogen Minerals in the project.
“Interested, suitable parties that deferred completion of due diligence until the permitting process was finalised, will now be followed up,’’ he said.