Rio Tinto washes its hands of war crimes

Bougainville Revolutionary Army fighters look down on the Panguna mine in 1996. Now Rio Tinto hopes to wash away its role in war crimes

Rio Tinto ‘gives up’ Bougainville Copper stake

Daniel Palmer | The Australian | 30 June 2016

Rio Tinto has exited its 53.8 per cent stake in the ASX-listed Bougainville Copper after a near two-year review of its position.

The mining giant will transfer the holding to an independent trustee who will distribute the shares to both the Autonomous Bougainville Government (ABG) and the Papua New Guinea government.

It will receive no compensation in return despite the stake being worth over $40 million as of the close of trade yesterday.

The decision by Rio will see the ABG receive a greater proportion of its stock, although both ABG and the PNG government will hold an equal share of 36.4 per cent once the stake is transferred.

Bougainville Copper’s prospects rest on the future of the controversial Panguna copper/gold mine in Papua New Guinea, which has been out of operation since it was central to the start of a 10-year civil war that broke out in 1989.

The Panguna mine was a major producer in its heyday and is believed to still house a very significant 5.3 million tonnes of copper and 19.3 million ounces of gold. However, it could cost up to $10 billion to restart production, while the hurdle of public support will be a challenge to clear.

Bougainville Copper’s rights to the mine were stripped in 2014, which led to the Rio review and while it still hopes to reclaim the licence to develop the mine, there has been no significant change to the state of play.

It does, however, retain an exploration licence.

Rio’s stake was worth $92.5m when it first hinted at an exit, with market interest steadily fading since.

“Our review looked at a broad range of options and by distributing our shares in this way we aim to provide landowners, those closest to the mine, and all the people of Bougainville a greater say in the future of Panguna,” Rio Tinto Copper & Coal chief executive Chris Salisbury said.

“The ultimate distribution of our shares also provides a platform for the ABG and PNG government to work together on future options for the resource.”

The deal will see Rio give six months’ notice for termination of its management agreement with the ASX-listed group, while Bougainville Copper chairman Peter Taylor will step aside, with immediate effect.

Should either the PNG government or ABG not accept the stake offered by Rio within two months, it will be offered up for the other party to take control.

The departure of Rio from the project echoes a similar decision to walk away from the Northern Dynasty Minerals project in Alaska in April 2014, as it gifted its stake in that controversial project to charitable enterprises.

Logging exposes Frieda river mine lies

The history of the logging industry in the Sepik region exposes the lies of advocates of the Frieda river mine who say the economic returns will improve local livelihoods.

The Sepik region has been heavily logged by foreign owned companies for more than 30 years.

Since 2000 alone, logs valued at more than K3.75 billion have been exported from the region. But the benefits for ordinary people are nowhere to be seen.

Mineral Resource Authority Managing Director, Philip Samar, claims the Frieda river mine ‘would be the first large-scale resource project in the Sepik Provinces’, conveniently forgetting the 10 or more large-scale logging projects that last year exported timber valued at K258 million.

Samar would have us believe the roads of Wewak and Vanimo will be paved with gold if we allow the Chinese to open their mine – thirty years of logging tell us that is a lie!

Frieda raising standard: MRA
The National aka The Loggers Times |June 29th, 2016
THE Mineral Resources Authority says the formal process for the Frieda River project will become operational and be of world standard.
Frieda River Limited (a PanAust Limited subsidiary) and Highlands Frieda Limited (a Highlands Pacific Limited subsidiary), are the tenement holders for the Frieda River Project in West Sepik.
They last Friday registered with the Mineral Resources Authority (MRA) a special mining lease application, along with nine supporting tenement applications. 
MRA managing director Philip Samar said the project would be the first large-scale resource project in the Sepik provinces.
He said the registration of the mining lease was a significant milestone for the companies involved and for the country.
It will be known as tenement SML 9. 
“Once in development, the project will increase national gross domestic product and export earnings and provide a long-term boost to Government revenues,” he said.
“It will also generate benefit streams to landowners and host communities, as well as create employment and business development opportunities during project construction and operation.” 
The pre-production capital cost of the project is estimated at US$3.6 billion (K11 billion) . 
“Following the granting of the lease, a construction period of up to four years is envisaged. Production is expected to commence in the early 2020s.
“The average annual production estimates of metal in concentrate, from the 2.7 billion tonnes of mineralisation, is 175,000 tonnes of copper and 250,000 ounces of gold.
“The initial stage of the mine is expected to be 17 years, with multiple pathways to further expand and extend the initial operation.” 

Rio Tinto dumps its Panguna responsibilities

Rio Tinto is walking away from Panguna without paying any compensation for the death and environmental destruction it caused

Rio Tinto Media Release | 30 June 2016

Rio Tinto has today transferred its 53.8 per cent shareholding in Bougainville Copper Limited (BCL) to an independent trustee.

Equity Trustees Limited will manage the distribution of these shares between the Autonomous Bougainville Government (ABG) for the benefit of all the Panguna landowners and the people of Bougainville, and the Independent State of Papua New Guinea (PNG).

Under the trust deed, the ABG has the opportunity to receive 68 per cent of Rio Tinto’s shareholding (which equates to 36.4 per cent of BCL’s shares) from the independent trustee for no consideration and PNG is entitled to the remaining 32 per cent (which equates to 17.4 per cent of BCL’s shares).

The ABG and PNG will both hold an equal share in BCL of 36.4 per cent if the transfers are completed. This ensures both parties are equally involved in any consideration and decision-making around the future of the Panguna mine.

Rio Tinto Copper & Coal chief executive Chris Salisbury said “Our review looked at a broad range of options and by distributing our shares in this way we aim to provide landowners, those closest to the mine, and all the people of Bougainville a greater say in the future of Panguna. The ultimate distribution of our shares also provides a platform for the ABG and PNG Government to work together on future options for the resource.”

In accordance with the existing management agreement with BCL, Rio Tinto will today give the required six months’ notice to terminate the arrangement. Although Rio Tinto will no longer hold any interest in BCL, Rio Tinto will continue to meet its obligations under the agreement during that period to ensure an orderly transition in the shareholdings of the company. BCL chairman Peter Taylor will resign with immediate effect but he will continue to be available to provide services to the board during this transition period.

Note to editors

The Trust Deed determines that should either beneficiary of the trust not apply for the transfer of the BCL shares attributable to them from the trustee within two months, then those shares will be made available to the other party.

Frieda miners play their billion dollar bullshit card

Just like Ok Tedi, Porgera and Panguna, Frieda river mine could add billions to GDP – but what does that really mean and haven’t we heard the same bullshit before?

Freida mine to generate billions

Gorethy Kenneth | Post Courier | June 28, 2016

ONE of Papua New Guinea’s major mining projects will generate more than PGK39 billion and increase real income by PGK11.8 billion once it starts.

The Frieda River Project in East Sepik and West Sepik Provinces will generate PNG’s real GDP by a cumulative total to the year 2040 of PGK39 billion and increase real income by PGK11.8 billion.

For the West and East Sepik Provinces, the Project would increase real GDP by a cumulative total of PGK36 billion and increase real income by PGK5.2 billion.

Everyone from the World Bank and the United Nations to the PNG government acknowledge previous large-scale mines in PNG have not delivered better lives for ordinary people and have instead left terrible environmental and social problems. The mines were approved on the basis of the same ‘billion $ bullshits’ we are now hearing once again…

Last week, the Government officially announced Frieda River Limited (a subsidiary of PanAust Limited) and Highlands Frieda Limited (a subsidiary of Highlands Pacific Limited), the tenement holders for the Frieda River Project in East Sepik and West Sepik Provinces, officially registered a Special Mining Lease (SML) application, along with 9 supporting tenement applications, with the MRA, Papua New Guinea’s regulatory authority for mining last week.

Can someone please let Gorethy and the Post Courier know that PanAust is in turn owned by the Chinese State through Guandong Rising Asset Management – just like MCC and its faltering Ramu nickel mine in Madang

PanAust has devoted over 235,000 man-hours and invested US$65 million to advance the Project. This has been achieved with no lost time injuries, an excellent outcome for a Project that is located in a remote area with limited access.

Mineral Resource Authority boss Philip Samar in a statement said last Friday that the commencement of the formal process for the Frieda River Project to become an operational mine of world standard.

How can Philip Samar know the mine will be of “world standard” when they haven’t yet revealed how they will manage the toxic tailings and have not submitted any environmental plan?

“Frieda River Limited (a subsidiary of PanAust Limited) and Highlands Frieda Limited (a subsidiary of Highlands Pacific Limited), the tenement holders for the Frieda River Project in East Sepik and West Sepik Provinces, have today registered a Special Mining Lease (SML) application, along with 9 supporting tenement applications, with the MRA, Papua New Guinea’s regulatory authority for mining”.

“The project will be [will be? oops, sounds like Samar has already determined the outcome of the application?] the first major, large-scale resource project in the Sepik provinces of Sandaun and East Sepik, a least-developed area of Papua New Guinea. Registration of the SML is a significant milestone for the companies involved and for Papua New Guinea, coming at a time of cyclical downturn in the mining sector. The lease will be known as tenement SML 9. This application provides confidence for the future of the mining industry, which has long been the mainstay of PNG’s economy,” he said.

“Once in development, the project will increase national gross domestic product and export earnings and provide a long term boost to government revenues. It will also generate benefit streams to landowners and host communities, as well as create new employment and business development opportunities during project construction and operation”.

Yes Philip, we have heard the same bullshits before, but how will Frieda be any different from Ok Tedi, Porgera, Panguna and all the rest….?

Company Boards still to approve Wafi-Golpu commitment

With their Hidden Valley mine unable to return a profit do Harmony and Newcrest really have the stomach for another JV?

Joint venture prepares for mining [really?]

Gedion Timothy | The National aka The Loggers Times | June 27, 2016

THE Wafi-Golpu Joint Ventures, since the announcement of the findings of its feasibility study, is focusing on preparing an environment impact statement and a special mining lease application.
General manager Sustainability and External Relations David Wissink said the impact statement and the mining lease application would be submitted to the Government after the approval of the Newcrest and Harmony boards before the start of the next phase of development.
“The proposed mine development is underground, targeting the rich Golpu copper-gold porphyry ore body. Feasibility study investigated the establishment of two block caves – block cave one BC1 and a deeper block cave two BC2  –  along with associated infrastructure, processing plant, roads, electricity, water management and port facilities,” Wissink said

Assess environmental damages, Bulolo LOs tell Pacific Niugini

Bulolo township

Joan Bailey | Post Courier | June 24, 2016

LANDOWNERS from Kusi village in Waria local level government, Bulolo District have appealed to Pacific Niugini Minerals and MGL Limited to sort out the environmental damage caused to their environment.

Chairman Simon James and his assistant Sakixy Kabre told Post-Courier that the two companies started exploration drilling for minerals at their village in 2010. They said the exploration work progressed really well with the developers excited with the results where evidence of gold, copper and silver was discovered only seven metres deep into the earth and of high grade.

Pacific Niugini exploration licences around Bulolo

“Due to the fact that we lack government services, we offered our land that is rich in minerals to the developers to be extracted and bring in developments into our villages in order to increase our living standard,” Mr James said.

However, Mr James said they were shocked that the PNM and MGL Limited just left in 2014 without any proper explanation given or conversation held with landowners on their reasons to cease work. He said until now, they are still awaiting the response from the two explorers on the future plan of the Kusi prospect and also environmental damage caused.

Mr James outlined the environmental damage included deep trenches cut into the earth of two to three kilometres, several drill beds created, large surface clearance where forest are cleared chasing away all forest habitat, landslides, destruction of kawiwi (betelnut) plantation, bringing water supply from the mountains to their campsite doesn’t have a proper drain and it flows free so its continuous flowing runs into food gardens causing soil erosion.

Mr James appealed to PNM and MGL Limited to immediately consult the Kusi prospecting area landowners and solve the issue with them.

Experimental seabed mining… out of our depth

Mission Blue | June 23, 2016

Aliens finally made it to planet Earth. And it just so happens these aliens value — above all else — the American quarter, those shiny metal pieces emblazoned with George Washington. Upon surveying the planet, the aliens note that the highest concentration of quarters are located on Manhattan Island. So, they deploy enormous mechanical arms that raze New York City, destroying icons of culture and human achievement hundreds of years in the making. What’s left is rubble strewn with quarters, which the aliens methodically gather up and stockpile. The aliens congratulate themselves on the efficiency and handsome profitability of their operation.

If this sounds like an absurd manner in which to value one of the greatest cities on Earth, that’s because it is. And while this story is fantasy, sadly the same mentality is playing out now on the floor of the ocean. For the better part of a century, humans have scraped the ocean floor with massive trawlers that level hundred-year-old corals and destroy diverse and unknown ecosystems in the pursuit of a singular, short-term value, whether it be cod, squid or shrimp destined for a plate thousands of miles away. The UN Secretary-General reported in 2006 that 95 percent of damage to seamount ecosystems worldwide is caused by deep sea bottom trawling. Now, in 2016, a new threat is emerging to the benthic ecosystems deep within the blue ocean: deep sea mining. According to our partners at the Deep Sea Mining Campaign, “the focus of deep sea mining (DSM) is the deposits laid down over thousands of years around underwater hot springs, or hydrothermal vents. For example Nautilus, a DSM project in the Pacific has secured or is in the process of applying for the exploration rights to 534,000 km2 of the sea floor in PNG, Tonga, the Solomon Islands, Fiji and New Zealand. In addition, many other companies are waiting to see how Nautilus fares before taking the plunge themselves.

The Deep Sea Mining (DSM) Campaign is an association of NGOs and citizens from the Pacific Islands, Australia, the US and Canada who are concerned about the likely impacts of DSM on marine and coastal ecosystems and local communities. The DSM Campaign started in late 2011 in response to the frenzy of sea bed exploration in the South Pacific. Approximately 1.5 million km2 of ocean floor is currently under exploration leasehold for deep seabed mining.  The world’s first license to operate a deep sea mine has been granted in the Bismarck Sea in Papua New Guinea to Canadian company Nautilus Inc. The DSM Campaign’s unique approach combines regional policy interventions, human rights, science based advocacy and working with local NGOs and community in PNG and the Pacific. 

Those quarter-loving aliens might have said, “What’s the big deal? We can’t see the harm here.” Indeed, that’s the same tune that DSM interests are humming: the upside is huge, environmental concerns are overblown, operations will be safe, what could go wrong? The truth is no one — neither oceanographers or DSM companies — know very much at all about deep sea ecosystems.

Remember, only 5% of the ocean has been directly observed by anyone. Some scientists believe that hydrothermal vents are where life first started on earth. If so, these environments and these ecosystems could provide insights into the evolution of life. This means that in the Pacific many species could become extinct before they have even been identified. And what about the potential toxicity of metals that will be released into the ocean water from DSM operations? Might they find their way into the food chain and contaminate seafood eaten by local communities? At the minimum, more study is needed to answer this basic and critical question.

Resource hungry nations are viewing Deep Sea Mining as the next gold rush. And momentum is building by the month. For example, check out these recent digital newspaper clippings:

• China unveils plans to construct an ocean laboratory in its bid to seize upon the vast mineral wealth in the South China Sea
• India has begun an exploration for mineral deposits and precious metals like gold and silver in the Southern Indian Ocean
• Nautilus Minerals admits Papua New Guinea is a sea bed mining experiment

Any observer to the Deepwater Horizon catastrophe knows that corporations focused on profit from resource extraction cannot be relied upon to self-regulate for safety and responsible environmental stewardship. Deep Sea Mining is no different. Dr. Sylvia Earle has perhaps put it best: “It’s like a land grab. It’s a handful of individuals who are giving away or letting disproportionate special interests have access to large parts of the planet that just happen to be underwater. The vast expanses of the central Pacific seabed being opened up for mining are still largely an unknown. What are we sacrificing by looking at the deep sea with dollar signs on the few tangible materials that we know are there? We haven’t begun to truly explore the ocean before we have started aiming to exploit it.”

To join in the fight against Experimental Seabed Mining, sign the petition. Another good backgrounder is this Huffington Post article by Phil Pauley.

PanAust lodges special mining lease application for Frieda River

Will the Frieda river be the next PNG river destroyed by mining?

Mariaan Webb | Mining Weekly | 24 June 2016

China-owned PanAust has applied for a special mining lease for the Frieda River copper/gold project, in Papua New Guinea.

MD Dr Fred Hess said on Friday that the lodgement of the application represented a crucial milestone in PanAust’s pursuit of organic growth. “Since taking control of the project in 2014, PanAust has committed significant resources to complete the feasibility study and maintain a site presence, while engaging extensively with the government of Papua New Guinea and host communities,” he commented in a statement.

Last month, PanAust completed a feasibility study for Frieda River, which showed that the project would cost $3.6-billion to develop and that an additional $2.3-billion would be required over the life of the mine on development and sustaining capital.

The feasibility study contemplated a large-scale, openpit mining operation producing 175 000 t/y of copper and 250 000 oz/y of gold over 17 years.

PanAust had devoted 235 000 man-hours and invested $65-million to advance the project.

“The special mining lease application gives us a good platform to secure support for major shared-use infrastructure, which would benefit the project and the people of Sanduan and East Sepik provinces,” Hess said.

PanAust said that the development of the project would increase Papua New Guinea’s gross domestic product and export earnings, while providing a long-term boost to government revenues.

The project would provide a large number of jobs during construction and operation. During operations the project would require about 1 950 full-time equivalent positions.

PanAust manages the project and holds an 80% interest with Highlands Pacific owning the balance. Papua New Guinea has the right to buy a 30% equity interest in the project prior to the grant of a special mining lease. Should the State exercise its full entitlement, PanAust would sell down to a 55% controlling interest and Highlands would sell down to a 15% interest. 

Barrick Once Again Ignores Human Rights Victims – Peaceful Protest Planned at Porgera Mine

MiningWatch Canada

 In the highlands of Papua New Guinea, a grassroots human rights group living in the shadow of one of the world’s largest gold mines is once again raising the alarm on behalf of human rights victims of the mine.

“Akali Tange Association Inc (ATA) has submitted 256 names of victims who have been shot death (sic), injured and raped by Barrick PJV Security Personnel,” reads a communiqué from ATA. ATA submitted the names to the mine’s grievance office in September 2015, and received a claims number, but there has been no progress on the claims. A peaceful protest to deliver a petition to the mine site is planned for June 24, 2015. 

After years of denial of excessive use of force by mine security and police guarding the Porgera Joint Venture mine, Barrick ran a compensation program at the mine site between 2012-2014 that eventually provided 119 victims of rape and gang rape by mine security with financial compensation in return for signing legal waivers.

“These women did not enjoy procedural fairness in the Barrick mechanism and did not have effective independent legal counsel,” says Catherine Coumans of MiningWatch Canada, “they are now protesting the compensation they received as it is reportedly a quarter of what 11 rape victims in Porgera received who did benefit from international independent legal counsel.”

Furthermore, ATA and international observers, including MiningWatch, are aware of women who should have received compensation through Barrick’s mechanism and were either not aware of the now closed program or were wrongly turned away. There also have been further incidents of violent rape since the compensation mechanism closed down.

Additionally, the program Barrick put in place dealt narrowly with victims of sexual violence. The mine refers other victims of excess use of force by mine security, including those who have been maimed, and family members of those who have lost their lives, to a “grievance office” at the mine site. ATA notes that this office is not responding to claims the organization has submitted.

“Barrick cannot now return to its previous policy of denial in regard to these serious cases of human rights abuses by mine security and police guarding the mine,” says Coumans, “nor can Barrick wash its hands of these victims who were not included, or passed over, in the compensation mechanism for rape victims. The responsibility to provide remedy to victims of the mine’s operations is not restricted to those who pose the greatest legal risk to the company.”

See also: Letter from Akali Tange Association to Greg Walker, Managing Director of Barrick Gold subsidiary Barrick Niugini Limited, June 17, 2016 [pdf file]

“World Class” Ramu Nickel Sacks Union Leader and All Union Members

MCC’s tax free Ramu mine headquarters in Madang

Bismarck Ramu Group

Ramu Nickel (MCC) Management continue with their oppressive abuse of Papua New Guinea workers. It appears if you speak out – and call the Chinese out for what they are and what they do – you have to go.

Justine Mende, the President of the Ramu Nico Allied Workers Union was recently sacked for – well for standing up for the rights of PNG workers and trying to insure they are treated with a bit more respect than they are getting from the Chinese management.

Obviously the Chinese are quite nervous about a person like Justine for after sacking him the MCC “management” began circulating a memo WITH HIS PHOTO letting people know that Justine is restricted to enter MCC’s operational and refinery sites and is to be arrested if he is found on those sites. They said he would be trespassing.

What the Chinese are really nervous about is that Justine continue to inform the workers of their rights and how they do not have to be take the nonsense from the kongs nor continually be disrespected by them. The workers are beginning to take heed of that message and the Chinese are rightfully worried.

So worried are the Chinese they have sacked MORE THAN 50 PNG employees since the High Pressure Acid Leach Auto Clave at Basamuk on 12 April.

In addition to the sacking of 50 PNG employees the MCC “management” has terminated ALL members of the Allied Workers Union.

And why is no one looking into this. Well we know don’t we. They’ve all been bought off and Jim Kas is too busy getting drunk with his lackeys at the Star International Hotel.

Justine is taking the matter to Court as well he should. The Chinese have no concept of what that means.

Keep it going Justine. Hopefully people in Madang will show the same spirit as the University Students and start standing up for whats right and not accepting the nonsense that the Chinese continue to deal out.

Stay tuned folks.