FRIEDA RIVER
Location
Near the border of the Sandaun and East Sepik Provinces in north-western Papua New Guinea.
Latitude 4°42'31.46"S Longitude 141°43'19.20"E
Status
The mine is at the advanced stage of exploration and is currently the subject of a pre-feasibility study due for completion in August 2010. This would allow project construction to start in 2012 and production to begin in 2016. The results of an extended scoping study were released in early 2009 and envisaged production over a 27 year mine life averaging 160,000 tonnes of copper metal and 240,000 ounces of gold per year.
Type of Mine and Waste Disposal
The Frieda River project comprises three deposits; the Nena, Horse/Ivaal/Trukai and Koki. It has an overall resource estimated at 7.5 million tonnes of copper and 14.3 million ounces of gold and collectively forms one of the world’s largest undeveloped deposits. The mine would need a tailings disposal facility either near the project or pumped to margin of the Sepik plain. According to the mine proponents a riverine waste disposal will not be considered. Waste rock dumps would be located beside the open pits. The project will likely involve the construction of several open pits, tailings dams and hydroelectric power. Concentrate would be pumped to coast in a pipeline.
Target Minerals
Gold, Copper
Past Production
Not applicable
Current Production
Not applicable
Ownership and Finance
Frieda River is a joint venture between subsidiaries of Xstrata Copper, Highlands Pacific and OMRD Frieda Co Ltd . In January 2007 Xstrata (following the acquisition of Falconbridge in 2006) exercised its option to acquire 81.82% of HPL’s then current interest in the Frieda River project. At the same time Xstrata also elected to become the project operator, effective from 22 January 2007. The current ownership is Highlands Pacific Ltd (16.9%), OMRD Frieda Co Ltd (6.9%) and Xstrata Frieda River Ltd (76.2%).
Environmental Impacts
Impacts will be reduced significantly if riverine tailings disposal is avoided. However, if tailings escape into the river systems the Frieda River mine could cause environmental and social impacts similar to the Ok Tedi mine on the Fly River. The population affected could be potentially much larger. The mine will involve the continued clearance of rainforest in the Sepik Hills. These are significant areas of lowland tropical rainforest in the Pacific. Significant vegetation clearance has already taken place for the exploration phase and considerable further clearing can be expected for base camp and pipeline construction.
There is the risk of pollution of lower, middle and upper Sepik wetlands. The wetlands of the Sepik are world-renowned and tailings from copper and gold production, if not properly contained, would have a devastating impact on these fragile wetlands causing the death of water fowl, fish populations and river-side vegetation. Indigenous peoples living in the Middle and Lower Sepik River and depend on forest and swamp resources, particularly the groves of sago palm which provide the staple food of the region.
Social Impacts
A prefeasibility study highlighted the importance of establishing and maintaining landowner relations. It is recognised that it is a critical issue and will have ongoing implications for the project. Work has been undertaken including detailed genealogy, sociology and village census studies to determine a baseline for the Frieda River project. Five major language groups, the Iwam, Miyanten, Owininga, Paiyamo and Telefolmin have been identified in the areas surrounding the project and all of these groups will need to be incorporated into any development plan.