Monthly Archives: March 2017

PNG Mine Watch in Top 15 mining websites worldwide

PNG Mine Watch has been internationally recognised as the 13th most influential source of mining news on the web by FEEDSPOT, punching above its weight alongside many commercial mining news websites.

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Confusion over FGF and bauxite mining in Fiji

Luke Rawalai | Fiji Times | March 23, 2017

The landowning unit of Fiji’s first bauxite mine in Nawailevu, Bua yesterday clarified this issue that Lands Minister Faiyaz Koya earlier described as “one that will benefit the future generation only”.

In an earlier interview with this newspaper, Mr Koya said only the three generations emerging within the 99-year lease duration of the Nawailevu bauxite mine would be eligible for the Future Generation Fund.

Mr Koya said the funds were meant for the future generations of the three landowning units of Noro, Nalutu and Naicobo in Nawailevu.

However, in their response and speaking on behalf of the landowning units, Vilikesa Kaidawa said the Future Generation Fund derived from the royalties of bauxite mining would also benefit current landowners.

This, he said, included the elders of the three landowning units.

Mr Kaidawa said landowning units had a workshop with representatives from the Land Bank Unit who assured them that current generation would also benefit from the revenue generated from investments of the FGF.

“We had a workshop with the unit on the first week of last month where we were told that the fund would be put in investment institutions to grow the fund of $600,000,” he said.

“Revenues generated from the investments will benefit current members of the LOUs while the $600,000 will be set aside for future generations.

“The workshop was also attended by representatives from investment banks and talks had been held during the workshop on putting up investment projects such as the purchase of a home, hotel and so on to bring in revenue.”

Mr Kaidawa said they had asked for part of the funds to invest and make money.

But the Ministry of Lands has made its stand clear that the FGF would not be released at any time except for the three generations born during the 99-year lease period.

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The Sinking Titanic: German Government facilitating Deep Sea Mining

NGOs and civil society from Papua New Guinea, Australia, Germany and around the world are calling for a ban on seabed mining. They challenge the development of regulations[1] by the International Sea Bed Authority (ISA) and the German Government’s push to strengthen these regulations this week at a meeting in Berlin[2].

“Enough is enough!” stated Pastor Matei from the Alliance of Solwara Warriors, Papua New Guinea (PNG). The Solwara 1 Project is risky business as it is an experiment and people do not want to be used as guinea pigs. The Bismarck Sea is not a science laboratory for Nautilus Minerals Inc.

“People from the Pacific are custodians of the world’s largest oceans and it is these oceans that connect everyone in the Pacific. The oceans are as important as land. They are sources of food and livelihoods and they are of strong cultural and spiritual importance. Experimental seabed mining threatens this.”

“The demand for a ban on deep sea mining reflects the views of communities in PNG and across the Pacific. Our opposition is strong and growing[3].”

Natalie Lowrey, Deep Sea Mining campaign stated,

“The demand by Pacific communities for a ban on this frontier industry is joined by the Deep Sea Mining campaign and leading NGOs in Germany. The development of regulations for deep sea mining is akin to loading more passengers onto a sinking Titanic. Report after report[4] demonstrate that the world’s oceans are already on the brink of peril.”

“Recent research from the MIDAS consortium indicates a concrete risk that deep sea mining would lead to serious irreversible harm. The ISA and the German Government are paving the way for yet another assault upon our oceans – an unprecedented and unnecessary assault.”

“The demand for a ban highlights the need to debate whether we should open up our oceans seabed to mining when alternatives are available. Germany and the EU should promote sustainable sources of minerals. such as urban mining.

Christina Tony, from the Bismarck Ramu Group in PNG said,

“In Papua New Guinea and across the Pacific we do not see experimental seabed mining as meeting any of our communities’ needs, nor does it provide a benefit for humankind as a whole. In PNG, and across the world, we already have plenty of land-based mines and they have plenty of problems.”

“Imposing this industry on us is another form of colonisation. By promoting experimental seabed mining, Germany and the EU are complicit in continuing the ‘empire’ tradition in which it believes it should be free to rape and pillage the Pacific for its own profit.”

 


NOTES

[1] See submissions by the Deep Sea Mining Campaign: http://www.deepseaminingoutofourdepth.org/wp-content/uploads/Deep-Sea-Mining-Campaign-submission-to-the-ISA-Nov-2016.pdf  and Seas At Risk: https://www.isa.org.jm/files/documents/EN/Regs/DraftExpl/Comments/SAR.pdf

[2] Organised by the German Federal Institute for Geosciences and Natural Resources the ‘Towards an ISA Environmental Management Strategy’ workshop is being held in Berlin this week 19-14 March. The meeting aims to progress an ISA Environmental Management Strategy for deep sea mining.

[3] Lutherans Walk 9 days Across Highlands Region Campaigning Against Deep Sea Mining in Papua New Guinea, EMTV; VIDEO: Lutherans Campaign Against Deep Sea Mining in PNG, EMTV online and Caritas PNG Forum call for ban on Sea bed mining

[4] Reports include: World Wildlife Fund (WWF) Reviving the Ocean Economy (2015) and The Living Planet (2016);  International Union for Conservation of Nature (IUCN) State of the Ocean (2013) and Explaining Ocean Warming (2016); and the United Nation’s World Ocean Assessment 2016 which is a global inventory of the state of the marine environment and problems threatening to degrade the oceans.

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Filed under Environmental impact, Pacific region, Papua New Guinea

We must protect our seas

These giant seabed mining machines will do enormous damage

 Editorial | The National aka The Loggers Times | March 20, 2017

PRIME Minister Peter O’Neill has conveyed another powerful message about the imminent threats of pollution, illegal fishing and climate change to Pacific Island nations, including Papua New Guinea.

And he has called on island nations around the world to come together for global action to protect their communities from marine damage.

O’Neill told leaders attending the Pacific Regional Preparatory High-Level Meeting for the United Nations Conference on Oceans in Suva, Fiji, that they had valid marine resources concerns that must be taken up by the global community.

“Pollution, illegal fishing and climate change destroys ecosystems in island nation maritime areas. We did not cause these problems but these problems cause damage to our communities today and into the future.”

The meeting in Suva on Thursday and Friday focused on building consensus and establishing a way forward to seek the global community’s support and assistance in preventing the destruction of marine resources in the island nations.

This is the third occasion that O’Neill has raised concern about the imminent dangers that the Pacific Island community faces.

In 2015, he warned to global leaders attending the COP21 UN climate change conference in Paris to find a workable solution to save lives and protect island communities.

And last year, he warned leaders attending the Pacific Island Forum (PIF) meeting in Pohnpei, Federated States of Micronesia, that the threat posed by illegal fishing on their economic survival was growing.

As chairman of the PIF, O’Neill is spearheading the Pacific Island community’s cause for greater attention by the global community on these pertinent issues.

This is part of his address to leaders at the Suva meeting:

“Our ocean and its vast resources, not only provide nourishment for us, it also provides 20 per cent of the world’s protein and economic returns for our countries from fisheries.

Our ocean is a highway for significant shipping and trade generating significant economic value but with minimal returns to us.

But, we are seeing alarming statistics about the health of our ocean; of the poor state of our coral reefs caused by coral bleaching and pollution, of the negative consequences for our marine biodiversity and of the levels of Illegal Unreported and Unregulated fisheries.

So we need to not only make declarations but to accelerate and step up our actions and demand the same of others to restore our ocean’s health, through embracing integrated ocean management approaches and sustainably managing and conserving our coastal, inshore and ocean resources.”

Insofar as Papua New Guinea is concerned, the effects of climate change are already evident in the Carterets Islands, islands in Manus and the outer atolls in coastal provinces that have experienced the rise in the sea level.

While climate change needs a global approach and solution, illegal fishing remains a sticky point for individual island nations.

The PIF meeting last September resolved for greater action in dealing with illegal fishing and related activities.

The increase in illegal fishing and human trafficking, especially by fishermen and companies of Asian origin, in our region is a growing concern.

These illegal activities seriously affect the economic survival of the small island nations, especially when large importers like the European Union and the United States raise questions and threaten to impose trade restrictions.

Efforts by the fisheries authorities of the various, mostly ill-equipped island countries and their collective voice, the Forum Fisheries Agency, have been largely unsuccessful in effectively curbing illegal fishing.

In a way, the PNG National Fisheries Authority (NFA) is far better placed to monitor and report on illegal fishing.

The NFA has, over the years, drawn on the assistance of the maritime element of the PNG Defence Force and the Australian Navy to patrol our waters.

For the smaller island nations, a lot is left to goodwill and hope that sovereign territorial rights will be respected by our neighbours.

Still, we may never get to know the full extent of what is happening on the high seas.

Ongoing incursions into territorial waters are indicative of blatant disrespect for sovereignty. And such a practice does nothing to help mutual relations between countries.

Repercussions of illegal fishing are not only about economic losses for small island nations but there are also greater environmental concerns involving the maintenance of marine species.

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Filed under Environmental impact, Papua New Guinea

LNG landowner frustrations rising again in PNG

Hides landowners met several times with the government to discuss outstanding LNG Project payments. Photo: Supplied

Radio New Zealand | 21 March 2017

Papua New Guinea’s major LNG Liquefied Natural Gas or LNG project could be shut down again due to simmering landowner frustrations.

Landowners in the Highlands province of Hela say the government has let them down again by not following through on promised benefits from the multi-billion dollar gas project.

The landowners mounted a protest blockade of the project’s conditioning plant in Hides last August.

In response the government signed an agreement to address landowners’ grievances over lack of benefits and equity arrangements within thirty days

Hides landowner representative Andy Hamaga said government did not honour their promise.

“Unfortunately to date they haven’t done anything. We are looking at options, whether to take them to court, or go with the national arbitration, or go go back again and shut down the whole (LNG Project) operations before the general election,” he said.

At the time of last year’s blockade of the LNG plant, in response the government said the delays in royalty payments to landowners were due to complications over identifying genuine landowners.

The Petroleum and Energy minister Nixon Duban said that it was in the best interests of Hela to ensure that the right beneficiaries would be getting the payments.

“This project is going to be here for a long time,” Mr Duban explained at the time.

“We cannot make a mess and pay the wrong people. And so the onus is on the state to ensure it’s done properly. Whether we take one year or a couple of months, we must ensure it is done properly.”

However, Mr Hamaga said this was misleading.

“The state minister is not giving us the actual information,” he said.

“They were supposed to do this clan vetting and landowner social mapping thing before we signed the big Umbrella Benefit Agreement we have signed in 2009. I think they’re using this one as an excuse.”

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Filed under Financial returns, Human rights, Papua New Guinea

Fiji villagers claim mine spill destroying fishing grounds

Shalend Prasad points at a water outlet from the bauxite mine alleged by members of the public to be waste water from sediment ponds within the mine. Picture: LUKE RAWALAI

Luke Rawalai | Fiji Times | March 20, 2017

PEOPLE in Nasarawaqa, Bua and those living along the Dreketi River claim the decline in marine resources around the area is due to spillage of waste water from the bauxite mining in Naibulu, Dreketi.

Sasake villager Apisalome Tumuri claimed that the spill off from the mine during heavy rain forced marine life out from the area to the deep sea.

The 52-year-old fisherman claims there had been a lot of changes in their fishing ground since mining began in nearby Naibulu, Dreketi.

Mr Tumuri said fish, crabs and bech-de-mer had begun disappearing from their fishing grounds during the past three years. He said in the past, villagers could pick shellfish and fetch mud crabs from nearby mangroves.

He said they now had to go out into the open sea to get these.

Dreketi resident Losana Lomani said the Dreketi River had turned red last week after heavy rain was experienced in the area.

Ms Lomani said they learnt that the muddy water originated from the mining site and that women in the area found it hard to find freshwater mussels in the river.

XINFA Aurum Exploration Fiji Ltd’s senior officer Sang Lei said the muddy water witnessed by villagers was normal rain run-off from land.

Mr Lei said all waste water from the mine was contained in the sediment pond at the mine and that none had seeped into the waterways as claimed.

Responding to queries, permanent secretary for Lands and Mineral Resources Ministry Malakai Finau said it was normal for the sea to turn muddy during heavy rain.

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How the free market failed Australia and priced them out of their own gas supply

While Asia is enjoying low prices for Australian gas, back home things are getting worse. (Origin Energy)

Ian Verrender | Business Editor | ABC News

Fashion has a habit of turning full circle.

Remember that old shirt, the super tight one with the stretchy material and weird collar that you found at the bottom of the wardrobe? What on Earth possessed you to buy it, you wonder. What were you thinking?

For anyone who lived through the ’70s, the memories of those fashion crimes often come back to haunt us.

It was also an era when free market ideology began to assert itself in public policy. And with good reason.

Government-run businesses were inefficient, bloated and bureaucratic. Letting them loose would free up scarce public funds, competition would lower prices and scarce resources would be allocated with the greatest efficiency.

When Margaret Thatcher came to power in the UK in the 1980s, she unleashed a wave of privatisations that transformed the economy and contributed to decades of economic growth.

It didn’t take long for the fad to gain ground here. Government-owned businesses from airlines to banks and insurance companies were jettisoned.

Even vital infrastructure like roads, telecommunications and power generators were flogged to the highest bidder with little thought about the long-term consequences.

But have we gone too far? Free market theory, while it’s terrific in theory, has some almighty shortcomings and, as we now are discovering, may not be the economic cure-all we once imagined.

Suddenly, the winds have shifted. Business leaders talk in hushed tones, openly uttering a phrase once considered unmentionable: market failure.

In the past few days, there has even been a call for part nationalisation of our energy industry from a free market wheeler dealer. More on that later.

A fortnight ago, competition chief Rod Sims let fly with his annual swipe at the fee-gouging taking place at our airports.

Airlines and the travelling public were forking out an extra and largely unnecessary $1.6 billion in fees.

What’s going on with gas?

The problems arise when the business being sold is a monopoly, when the buyer, having paid an exorbitant price, is given carte blanche to extract its tonne of flesh. The benefits flow from the community to private interests, often offshore.

Generally, we’re talking about utilities — things like power companies, for instance. And then there is gas.

For years, electricity and gas operated independently. But the two have become intertwined as the shift towards a cleaner environment and lower emissions has thrust gas firmly into the box seat as the transition fuel to generate electricity.

We’ve suddenly discovered, however, we don’t have enough. It’s no exaggeration to describe the power situation now facing eastern Australia on both fronts as a catastrophe. And here’s why.

Within the next four years, Australia will overtake Qatar as the world’s biggest supplier of gas. We are sitting on vast gas reserves. In fact, we’re swimming in the stuff.

And yet, we face critical shortages at home which could starve manufacturers of fuel, see power outages across the eastern states and force energy prices through the roof while any profits that are made will be shipped offshore.

This is a public policy fail of epic proportions.

And it’s worth getting a handle on how it all came about and the shenanigans employed by the gas majors that have deliberately created this crisis and the supposed shortage which is a total con.

How could this happen?

First, however, consider this: the gas we are exporting does not belong to the energy giants. It belongs to us.

Companies like Woodside, Origin and Santos and their foreign partners merely have bought the right to exploit those gas reserves, which was supposed to lead to massive benefits for ordinary Australians.

Here’s the scorecard so far. Having spent close to $250 billion building new export facilities, no-one seemed to think that flooding the globe with extra energy would see global prices drop.

They have. Gas prices into Asia, where we export, have now dropped below what it costs to extract, process and ship the stuff. In fact, the east coast suppliers so far have written off around $6 billion on their new plants.

It gets worse. Extracting the gas from coal seams in Queensland was a little more problematic than originally thought. Then farmers, incensed at the activity taking place on rich agricultural land, began shutting the gates.

That meant the companies couldn’t get enough to satisfy the huge supply contracts they’d written in Japan, South Korea and China. So they plundered the supplies, much of it from Bass Strait, that once powered the domestic market. That’s why we have an artificial shortage.

But wait, there’s more. No-one ever considered that once we were plugged into the global market, we’d be paying global prices. Around the time all these new gas plants were developed, prices in Asia were up to $25 a gigajoule. Back then, we were paying between $2 and $4.

Prepare now to be outraged. Global prices have more than halved to $10 and under. Domestic prices, meanwhile, have soared, to well above $10 because of the domestic shortage.

By putting the domestic market under pressure, they deliberately pushed local prices higher.

The upshot is that we now are paying more than Japanese manufacturers for our own gas. In fact, power company AGL is actively considering buying Australian gas in Japan and shipping it back home. And why not? It’s cheaper there.

That means energy-rich Australia is subsidising Asian manufacturers while penalising our own, a situation likely to force many to the wall.

Just to rub salt into the wound, the ramp-up in exports has not delivered the resources rent tax bonanza once promised by US giant Chevron. In fact, thanks to a shifty cash shuffle, ExxonMobil, Chevron and Shell until two years ago were booking around $3 billion a year in profit, tax free.

That’s seen our Petroleum Resources Rent Tax proceeds, which in the past delivered around $2 billion a year, plummet. In fact, by the time we overtake Qatar for global gas domination, it’s anticipated our resources tax will collect just $800 million.

Qatar, on the other hand, is expected to receive $26.6 billion in royalties that same year for roughly the same volume of exports.

So what’s being done about it?

Treasurer Scott Morrison last year declared he would urgently look into the matter. He’s called a review to get to the bottom of why soaring exports have coincided with a halving in the resources rent tax collections.

The review panel could do worse than read a report sent out last week by global investment bank Credit Suisse.

Hardly a bastion of left-wing ideologues, the report — entitled The Wolf Who Cried Boy — raises the prospect of Australia establishing a national oil company as one possible solution to the concocted crisis. And it goes straight for the jugular.

“If the gas producers and sellers are the wolves, they themselves are seemingly calling foul just as the danger is truly upon us,” it begins.

“We wonder whether a national oil company, a la Kumul Petroleum in PNG, could work? Instead of the petroleum resources rent tax on future projects, could we see state participation instead?”

Could we indeed? There undoubtedly will be howls of protest from the business lobby and their associated hangers-on. But consider this. Is this not the ultimate form of capitalism?

We are the landlords. The energy companies are tenants. If we had a controlling stake in the business, it would be much easier to ensure the kind of chicanery that has taken place in the past few years was never repeated. There would never be shortages.

And just perhaps, we’d end up with a dividend cheque, maybe even along the same lines as Qatar’s.

Just a thought.

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