19 Oct 2010

Chinese firm to finance copper mine in PNG

10:33 am on 19 October 2010

Marengo Mining Limited says a Chinese firm will secure financing for its flagship project in Papua New Guinea, which could become one of the world's largest copper mines.

Marengo has inked a non-binding memorandum of understanding with China Nonferrous Metal Industry's Foreign Engineering and Construction Company Limited for financing, construction and development of the Yandera project in PNG's Madang Province.

Marengo says NFC may also take a stake in the Perth-based company and the project, which also contains molybdenum and gold.

The company says in a statement that Yandera would be a large-scale, long-life operation, with production anticipated to start at about 25 million tonnes per annum, eventually ramping-up to 50 million tonnes.