26 Jun 2012

Xstrata's PNG exit no signal of wider concern says mining head

1:24 pm on 26 June 2012

The executive director of Papua New Guinea's Chamber of Mines and Petroleum says the departure of the Swiss mining giant Xstrata from the Frieda River copper project isn't an indication of wider concerns among investors.

Greg Anderson says while it is disappointing that Xstrata plans to sell its 80 percent stake in the West Sepik project, its 200 million US dollar investment has moved the project significantly up the pre-development scale.

He says it's not the first time the project has changed hands and suggestions that PNG's political situation is making investors jittery are untrue.

"As I say you've got to look at the record. The record is at the moment we're got an enormous exploration sector going, and it's at record levels, we've also brought on two major projects in mining in recent years and the other Nautilus project and we've got the LNG project. So it's a pretty impressive record."

However Greg Anderson says everyone, not only those in mining, wants the elections to restore political stability.