PNG could see US$80m benefits from seabed mining

Transcript

A new report says seabed mining could see Papua New Guinea reap economic benefits of 80 million US dollars over two years.

The cost benefit analysis report, commissioned by the SPC and the European Union, aims to provide information to Pacific countries about the impacts of sea bed mining.

The report looks into mining in three Pacific counties - seafloor massive sulphides in Papua New Guinea, manganese nodules in the Cook Islands and cobalt-rich crusts in the Marshall Islands.

SPC's deep sea minerals project manager, Akuila Tawake, says the benefits of seabed mining in PNG and the Cook Islands would outweigh the costs, but not in the Marshall Islands.

AKUILA TAWAKE: The cost benefit analysis is basically analysis of the social costs and benefits. And that includes environmental and cultural benefits and also costs. We decided to use the three countries simply because of their potential of deep sea mineral resources within those three countries. The three types of mineral deposits - for Papua New Guinea, for seafloor massive sulphides, and Cook Islands, for manganese nodules, and the Republic of the Marshall Islands for cobalt rich crusts.

MARY BAINES: So what did you find?

AT: The assessment was carried out by an independent company, Cardno. In their assessment, they found out that the mining in PNG if it goes ahead, based on the current economic climate in PNG and other external factors, it is going to be profitable. And similarly for Cook Islands, based on the current economic conditions. But for Marshall Islands mining crust, simply because they don't have enough data, as well as the technology is not there yet, so the assessment concluded that it's not profitable at this stage. But if they are going to get enough geological data and confidence that scenario may change in the future.

MB: As you say, PNG and Cook Islands could see some economic benefits. How much are we talking?

AT: Based on the report - the main net social benefit for mining in PNG for two years, around 80 million US dollars, and for mining maganese nodules in the Cook Islands for 20 years will bring a mean social benefit of around 500 million US dollars for the government. I am not speaking on behalf of PNG government, or Nautilus minerals, the company conducting exploration in PNG, but from what's happening and based on this analysis, I think they are going to go ahead. And you know talking to Nautilus minerals representatives they are optimistic that mining will take place in 2018.