THE FIGHT to relieve Papua New Guinea’s crippling electricity shortages could be helped by a new partnership between Foyson Resources and an alternative energy company that specialises in generation for remote locations.
Foyson has signed a non-binding term sheet with Australian company Integrated Green Energy (IGE), which is developing plastics-to-fuel and biomass-to-fuel technologies for generating energy from waste.
Though the agreement gives Foyson the exclusive licence to commercialise the technology in PNG, there has been no mention yet of developing a domestic plant, with the company making it clear that the acquisition is part of its stated goal of increasing cash flow projects to assist in the funding of their Amazon Bay iron sands activities.
Foyson said TVI Pacific’s decision not to fund the second stage of the Amazon Bay joint venture had made the need for a cash injection “more pressing”, with the drop of the iron ore price below $80 per tonne likely to discourage any other investors in the short term.
Foyson has so far committed to funding up to four plants in eastern Australia, which will be constructed and developed by IGE.
The agreement will also give Foyson exclusive licences to use IGE’s waste conversion technology in New Zealand, China, North America, India, and Fiji.
During the September quarter Foyson had the flagship iron sands tenement EL1396 renewed by the Mineral Resources Authority.
The company also celebrated a successful mining warden hearing to increase the Amazon Bay project area.