Today representatives from Petromin Holdings Limited, Mineral Resource Authourity, Central Provincial Government and Goilala’s Political and District Administraive as well as Land Owner Representative gathered at Tolokuma Gold Mine for a landmark decission to be made.
Petromin Holdings made known the actual reason for “closing shop” and pulling out of Tolokuma Gold Mines.
It was revealed lack of juicy returns from its very high expenses spents on operating TGM was single handedly the sole reason they had no choice but to pull out.
Tolokuma Gold mine is a very expensive mine to operate. This is a undeniable fact that has long haunted various operators that came in to operate TGM since 1995.
All operations, rations, supplies, personell and other related necessities are flown in by chopper. The terrain is rugged and very mountainous. Its not place for a smooth four lane highway. It is steep and ugly and very rugged. The rivers are fast flowing and while flowing down hill towards the coastlands, creates very steep mountain ranges which just complicates the whole dream of connecting TGM with Port Moresby.
In a 100 years, this will never happen.
But there is gold there. No doubt about that.
Today, Central Provincial Government has thrown its support behind the Yulai Land Owners – the principal LOs of TGM.
And woed to assist YLA people to seek out and secure and engaged some geniune operator who is interested in extracting gold from this rugged mountains of Goilala.
CPG has requested Petromin Holding to hand over the TGM mine back to the people of YLA so they can source out a operator/investor themselves.
And CPG, using its resources, will assist YLA LOs and Goilala people to seek out a operator.
Petromin has refuted calls that there was lack of Gold reserves/deposits in TGM. Return on Investment was below expectations and for any business to surive in this competitive world, they need to make profit. For so long, Petromin Holding was merely donating capital to a dead cow.
A businessness decission needed to be made and today marks the beginning of the end of TGM and Petromin Holdings relationship.