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REGIONAL ROUNDUP

Aussie triple threat

primed for success

f their respective plans for 2020 follow ing of the proposed process plant site, support of the Cambodian Government,
Iwhat is scripted, three ASX-listed juniors relocation of the Kulumadau village and the MIA provided “significant comfort” to
will have gone a long way to quashing per- expansion of the Woodlark mine camp to shareholders and other stakeholders giv-
ceived misconceptions around doing busi- accommodate another 250 people. en Okvau will be the country’s first com-
ness in the Asia-Pacific region. “We are excited to commence construc- mercial mining operation.
Australian success stories in the region tion and development activities in such a “MIAs don’t get signed in too many plac-
have been few and far between over the short timeframe since completing the capi- es in the world, it’s generally something first
past decade and it is only recently that tal raising,” Geopacific managing director movers do,” Hart told Paydirt.
the likes of St Barbara Ltd (Papua New Ron Heeks said. “We [Equigold] got one in Ivory Coast
Guinea) and Medusa Mining Ltd (Philip- “The reception from the local community when we built Bonikro because we were a
pines) have started kicking goals through has been excellent and they are excited to first mover and we’ve got one here because
the eyes of investors. see the benefits of skills, training, employ- we are first mover. One of the main reasons
However, as 2019 drew to a close Ge- ment opportunities, health and education we sought this MIA is because it gives us
opacific Resources Ltd, Emerald Re- as a result of Woodlark’s advancement.” offshore arbitration if there are any issues
sources NL and Nusantara Resources Ltd In Cambodia, Emerald has already suc- with the Government on the development
each ticked off major milestones associ- cessfully resettled 62 local families and of the project.
ated with financing and construction for completed site works to remove aban- “Secondly, there’s a couple of guaran-
their proposed new gold mines in Papua doned structures from its mining licence tees in there because we are a first mover;
New Guinea, Cambodia and Indonesia, at the Okvau project, about 275km north- tax in Cambodia is normally 30% for min-
respectively. east of Phnom Penh. A security fence ing, but they’ve given us a five-year reduc-
Each company has been active in their has also been erected around the prop- tion to 25% and they’ve also given us a re-
host countries for less than five years, but erty, while a 35t bridge across the Prek Te duction to 0% withholding tax on dividends.
all have used that time wisely to under- River for year-round site access is under That means in the first five years of the pro-
stand their respective projects and prime construction. ject we’ll be able to bring back our profits to
them for financing and development. These works preceded Cambodia’s help us build something else in Australia or
Geopacific was the first cab off the fi- Minister of Mines and Energy and Minis- whatever else we need to do. Then, after
nancing rank, raising $40 million via a ter of Economy and Finance signing off that we’d be expecting that money will be
placement in October to begin civil con- on a mineral investment agreement (MIA) going into more projects in Cambodia be-
struction works at its 1.6 moz Woodlark which not only exempts Emerald from any cause of the exploration ground we’ve got.”
project in Papua New Guinea. Staff and import taxes and duties but also paves the Alongside the MIA announcement, Em-
contractors were mobilised to site in early way for project financing terms to be final- erald revised some of the key assumptions
December. ised. and inputs of its DFS, with the NPV and IRR
Initial site works will include road up- Emerald managing director Morgan improving to $US337 million and 69% re-
grades, construction of a new wharf, clear- Hart said while his company had the full spectively on the back of a higher gold price

Government officials have signed off on a mineral investment agreement to underpin development of Emerald’s Okvau project in Cambodia

Page 74 FeBRUaRY 2020 aUSTRaLIa’S PaYDIRT