Photo credit: Post Courier - Mineral Resources Authority Managing Director Jerry Garry
New mining companies looking to invest in the country are currently faced with a significant barrier due to the lack of infrastructure development in the nation.
Although there is a significant demand for nickel cobalt and other high strategic minerals, with prices set to rise, the absence of infrastructure is a serious barrier, according to Mineral Resources Authority (MRA) managing director Jerry Garry.
Even though the nation has the resources, he claimed, the cost of doing business has significantly increased.
“If we have electricity, if we have access road and better wharf, a lot of the average deposits like the Wowo Gap and Mambare would have been developed a long time ago.
“Sometimes we really have to be considerate in whether we want to harvest these resources or we wait for the infrastructure to come or what are the options available,” Mr. Garry said.
He claimed that COVID-19 and the ongoing conflict between Russia and Ukraine over the supply of petroleum are two factors that have raised the cost of doing business in the nation.
“The average cost of building new mine project has gone up by 30 to 40 per cent across the globe.
“If we do not have the basic infrastructures, the cost of building the new mines would really have a toll and may render those projects uneconomical,” Mr. Garry said.
Reference: Wohi, Lorraine. Post-Courier (4 August 2022). “Gerry: Lack of Infrastructure Challenge To Mine Operators”.
