A long history of mining exists with alluvial gold mined continuously for more than 100 years, gold and copper mined during German colonial administration as well as the largest operating copper and gold porphyry mine of its day in Panguna.
Key to the ability of the ABG to function as an independent state is the economic viability of AROB.
Panguna operated for 17 years from 1972 to 1989. At closure/ abandonment the pit was 400m deep with ~90 Mtpa of ore and waste being mined. Mill throughput was ~48 Mtpa with a grade 0.41 % copper (“Cu”) and 0.41 grams per tonne gold (“g/t A u”), producing around 550,000 tonnes per annum ( “tpa”) of concentrate grading 30% Cu and 25g/t Au containing around 170,000 tonnes (“t”) of copper and 450,000 ounces (“ozs”) of gold. The annual production value in 21 September 2017 terms US$1.732Bn (Cu US$1.14Bn / Au US$0.59Bn)
It is obvious, that with the potential to re-establish Panguna operations and the additional potential in a largely unexplored mineral rich environment, mining activity could provide the fiscal independence the fledgling State aims for.
The Peace Agreement of 2001 and Constitution of 2004 provides the ABG with the authority to manage the mineral wealth of AROB. The ABG passed the 2015 Mining Act which differs fundamentally from that of Papua New Guinea because it recognises that indigenous landowners own all minerals beneath the surface. In short, without landowner approval exploration or mining rights will not be granted. With roughly 97% of the land being customary land, not government or privately owned, this is a key differentiator and element of any application for an Exploration or Mining Licence and essential to the success of any mining related venture in Bougainville.
Land is central to local custom and social relationships where a variety of use rights are inherited through birth, death and marriage and maintained by customary obligations. The key to access is relationships with the landowners and the Incorporated Land Groups that are the legal mechanism to gain use rights to land which protect the interests of the traditional landowners and the interests of the lessee.
Kalia two exploration licences (EL03 and EL04) held jointly with an incorporated landowner group, Toremana Resources Limited, for the lease of the Exploration License areas in the Mt Tore region, Granted on the 15th of November 2017.
Bougainville is one of the last undeveloped mineralised regions in the world that has the recognised potential to have world-class ‘elephant’ deposits hosted in highly prospective epithermal, porphyry and massive volcanic sulphides geological setting. For more project specific information please view the tenement areas under ‘Projects’.
The strong government support for exploration and mining to re-commence immediately, clearly articulated in public statements by the President and Vice-President of the ABG and other Ministers and Officials; allied to the support of Kalia’s landowner partners, places Kalia in a favourable position to discover and bring Bougainville’s next big discovery to market!