Morumbi Resources has had its renewal application for an exploration licence in the Popondetta area of the Owen Stanley Ranges in eastern PNG rejected. With the company not renewing its other exploration licence in this area, Morumbi’s interest in the country is now restricted to prospects on Bougainville island where there is a moratorium covering exploration.
In early 2013, due to the lower potential associated with a 94,800 hectare licence area, the company ceased exploration activities on this area and subsequently did not renew the exploration licence, allowing it to lapse and writing down the estimated costs amounting to almost $1.119 million.
In 2013 Morumbi applied for a renewal of the exploration licence for the other area of 34,100 hectares but in July 2014 the PNG Mining Minister rejected this application and the company subsequently wrote down the costs, amounting to almost $1.12 million.
The scope of the company’s activities on Bougainville with respect to mining and exploration is limited to relationship building, and will be so until a legal framework for the granting of licences is in place.