Monthly Archives: September 2018

Unauthorised Miners To Be Fined

Post Courier | September 27, 2018

The Mineral Resources Authority has started ridding unauthorized semi mechanized or mechanized mining in the country.

Unauthorized alluvial mining is predominant in the Wau and Bulolo areas of Morobe Province.

Illegal alluvial miners face a fine of up to K10,000 or prison term of up to four years.

Recently MRA issued 13 stop work notices to individuals engaged in the illegal activities in Wau and Bulolo.

MRA stated such activities are not only illegal but pose substantial environmental and safety risks to miners themselves and the surrounding communities.

MRA’s acting managing director Nathan Mosusu appealed to the miners to adhere to the regulatory requirements, which is part of MRA’s regulatory compliance responsibilities.

Mr Mosusu said MRA has in the past demonstrated its openness and commitment to developing the alluvial sector in collaboration with miners, but it is the miners’ obligation to ensure they operate in compliance.

“I am asking miners to work with MRA for the betterment of the sector. Together we can achieve results,” Mr Mosusu said.

The Mining Act 1992, section 167 states – a person shall not carry on exploration or mining on any land unless he is duly authorised under this Act.

The MRA said the deaths of alluvial miners from cave-ins caused by unauthorised mining activities, and failures to adhere to safety requirements have become common.

It said tunneling and sluicing as part of these unauthorised operations has damaged local roads especially between Wau and Bulolo.

The Wau and Bulolo areas have a long history of alluvial mining that dates back to the 1920s.

At present, there are 81 active alluvial mining tenements and 50 inactive historic tenements granted under the previous mining legislation.

The 50 historic tenements are yet to be converted to alluvial leases recognised under the current Mining Act 1992. Once converted, the terms of these converted tenements would then ensure key safety and environmental aspects of mining operations are regulated appropriately.

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Freeport Seals Pact With Indonesia on Giant Grasberg Mine

Eko Listiyorini and Viriya Singgih | Bloomberg | September 27, 2018

  •  Definitive agreement to allow Inalum to raise stake to 51%
  •  Accord is culmination of more than a year of negotiations

Freeport-McMoRan and Indonesia signed a binding landmark agreement for the U.S. miner to hand over majority control of the giant Grasberg copper and gold mine to a local state-owned firm, in the country’s biggest ever divestment by a foreign resources company.

Freeport Chief Executive Officer Richard Adkerson and PT Indonesia Asahan Aluminium President Director Budi Gunadi Sadikin signed a divestment deal and two other pacts in Jakarta on Thursday. The transfer of majority shares to Asahan Aluminium will happen once the company makes a payment of $3.85 billion to Rio Tinto Group and Freeport, Sadikin said.

The U.S. producer will continue to operate the mine under the agreement, which culminates more than a year of talks. The accord will allow Indonesia to issue a special mining license for Freeport to run the world’s second-largest copper mine through 2041. Freeport and Asahan Aluminium, known as Inalum, will complete the transaction before the year-end, Sadikin said.

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Filed under Financial returns, Indonesia

Wallis and Futuna rejection of seabed mining welcomed by Pacific NGOs

Photo: AFP

Radio New Zealand | 24 September 2018

A decision by traditional leaders in Wallis and Futuna to reject work related to seabed mining has been welcomed by a regional body of non-government groups.

Earlier this month the kingdoms on the French Pacific island of Futuna ruled out allowing any further exploration of the seabed in their waters, saying their stance is final.

The Pacific Islands Association of NGOs ,or PIANGO, said it stands with community and church groups around the region who call for a ban on seabed mining.

PIANGO director Emele Duituturaga said there were environmental concerns and also a lack of clarity around the financial benefits that resource owners will directly receive.

She said in the current geo-political environment and age of cheque-diplomacy it is important for the voices of the people to be heard.

“Now is the time for traditional leaders and our indigenous peoples, who are the main owners of our resources, to stand up and be counted.”

Emele Duituturagasaid the lessons and experiences of mining in the Pacific should be heeded when contemplating exploration of the seabed.

She said there should be a ban on seabed mining around the region, and that the same environmental and benefit issues surrounding terrestrial mining, exist around seabed exploration.

“We’ve not really seen any income from terrestrial mining. We’ve also seen the environmental degradation so we doubt very much that seabed mining will be any different.”

French scientists have visited the territory and said the question of underwater mining will remain.

Five years ago, the French Economic, Social and Environmental Council urged the government to secure resources in the seabed off France’s overseas territories.

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Filed under Environmental impact, Financial returns, Human rights, Pacific region

Moran LOs Threaten To Shut Oil Fields

Post Courier | September 21, 2018

THE Moran oilfields landowners are threatening to shut down the gas fields if the remaining balance of K35 million State commitment to them is not released before the World Leader Summit (APEC) in November.

Liya Molo, a chief from the Paua clan in the petroleum development licence-5 (PDL) area, claimed that though there was an existing authority on the ground to manage the funds, both political and administrative system in Waigani are capitalising on the excuse of not having an authorised authority, resulting in the delayed release of funds.

“Moran field or unit reservoir straddles three different licences namely PDL-2 block 2006, PDL-5 block 1934 and PDL-6 block 1933.

“In geotechnical terms, oil in PDL-2, PDL-5 and PDL 6 are in communication, therefore the oil from this three licensed areas are pulled together.

“The landowner leaders in 2009 have entered into an agreement and also formed three associations to manage funds (PDL-2 Apporo Uri Landowners Association, PDL-5 Homa Paua People Association and PDL-6 Pai Parapia Resource Owners Association,” Mr Molo said.

He said numerous attempts have been made to have the funds released but attempts have been in vain.

It was noted a document produced on a decision by National Executive Council on May 19, 2011, on the allocation and implementation of outstanding memorandum of understanding funds and projects, shows that some funds have been released to Kutubu, Gobe, Moran and Hides Gas.

For Moran, of the K50 million committed, K15 million was released with an outstanding balance of K35 million.

The NEC in its decision 86/2011 during meeting number 15/2011 on the status of the state’s outstanding commitment to Kutubu, Gobe Moran oil projects and Hides Gas on electricity project costed K235 million, agreed in connection with the Licensed Based Benefits Sharing Agreement in 2009.

This showed that some funds were released to the four areas.

NEC approved the breakup of another K100 million in the 2010 supplementary budget.

Mr Molo said this did not eventuate with the remaining K35 million to be split among the three licenced areas on Moran oilfield to carry out the intended projects which are on hold due to unavailability of funds.

He said any individuals, company or group that has interest in the K35 million should approach their associations.

“The state and its agents should not entertain individuals or groups but should deal with the three recognised associations,” he said.

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Axiom granted mining lease for Isabel nickel project in Solomon Islands

Imelda Cotton | Small Caps | September 20, 2018

Axiom is now fully permitted to commence mining of the Isabel nickel project (San Jorge), with first shipment of ore expected in Q1 of 2019.

Minerals explorer, via its 80%-owned subsidiary AxiomKB, has been formally granted a mining lease by the Solomon Islands government for the San Jorge nickel deposit, which sits within the company’s flagship Isabel nickel project.

The 25-year lease has been issued for the extraction, export and sale of nickel ore and associated commodities from San Jorge and allows Axiom to commence construction at Isabel, with a view to commercial production in early 2019.

In awarding the lease, Solomon Islands Minister for Mines, Energy and Rural Electrification Bradley Tovosia commented on Axiom’s contribition to the local region.

“The Isabel project is to be an important part of our economy, and it is exciting to see real production now moving forward for everyone’s benefit,” he said.

Upgrades of a temporary exploration camp to a long-term mining camp have commenced, in addition to the construction of supporting roads and loading facilities.

Community consultations are also underway in preparation for the first shipment of ore.

Financing for life of mine construction and development is in the advanced stages and due to be finalised over the coming weeks.

The Pacific’s largest nickel deposit

The Isabel nickel project is widely considered one of the largest nickel laterite deposits in the Pacific region, hosting a historical non-JORC deposit of 159 million tonnes at 1.1% nickel and 0.07% cobalt.

It comprises a number of deposits within the Solomon Islands’ Isabel province, including the key deposits of San Jorge and Kolosori, operated by AxiomKB (Axiom 80% ownership) in partnership with local landowners (20%).

Both are spread over 36 square kilometres each, with San Jorge accounting for approximately 50% of the known deposits within the Isabel acreage.

The deposits at San Jorge sit very close to the surface in uninhabited land along a shore which encompasses a natural deep water harbour – all qualities which will enable Axiom to bring a direct shipping of ore operation to the market in a timely and environmentally-acceptable way.

Project history

Axiom’s milestone signifies the first time in the Isabel nickel project’s history that an owner has been granted a mining lease.

Previous San Jorge tenement owner and former nickel major, Inco Ltd (now owned by Brazilian mining giant Vale) conducted feasibility studies during the 1970s based on results from over 7000 drill holes and pits and 10,000 samples.

In 1991, Kaiser Engineers completed its own study on Inco’s data, determining preliminary capital and operating expenditures and conducting economic analyses and financial modelling.

Development by either owner did not progress further due to a failure to win the support of customary landowners from the Kolosori and Bungusule tribes.

In December 2010, Axiom’s collaborative approach resulted in a partnership with the landowners and the Axiom KB joint venture was established. Then in September 2014, AxiomKB emerged successful after three years of litigation proceedings instigated by Sumitomo Mining Metals Solomon over the Isabel nickel deposit.

Last month, Axiom announced it would be recruiting key positions and growing its board of directors to enhance its operational expertise and strengthen its position during the project’s development.

At midday, shares in Axiom were trading 34.02% higher at $0.130.

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Filed under Mine construction, Solomon Islands

NZ Seabed mining battle continues

Ngati Ruanui protested against Trans-Tasman Resources’ bid for marine consent to mine the seabed for iron sand. More than 6000 people signed the petition calling for a moratorium on seabed mining. (File photo: Monique)

TTR plans to appeal seabed mining decision

Jane Matthews | Stuff NZ | September 21 2018

Trans Tasman Rescorses have decided to appeal the High Court decision that quashed their consent to mine up to 50 million tonnes of ironsand from a 66 square kilometre area off the South Taranaki Bight for 35 years. (File photo)

A mining company who has had their controversial consent to mine the seabed off South Taranaki denied for the second time has decided to appeal the High Court decision to stop them.

Trans Tasman Resources (TTR) has been trying to gain access to mine the South Taranaki seabed for years and was granted it in August 2017 by the Environmental Protection Agency (EPA). However, about three weeks ago the High Court quashed their consent on the grounds that the company’s method of environmental management was illegal.

TTR executive chairman Alan Eggers announced on Friday the company intended to lodge an appeal against the High Court’s decision, but first had to gain the permission of the court to do so. 

“Today TTR has lodged a notice to the Court of Appeal to seek leave to appeal the High Court judgment of August 28, 2018 regarding our marine consents for the South Taranaki Bright iron sands project,” Eggers said.

“It’s before the court and we’ll respect that and we’ll now have to see if the court will accept an appeal.”

Eggers would not answer any of Stuff‘s questions but said the basis of TTR’s appeal would be that they believe the EPA did follow a “legally correct approach in granting a marine discharge consent”.

The High Court decision to quash TTR’s contract, which granted consent from the EPA to mine up to 50 million tonnes of ironsand from a 66 square kilometre area off the South Taranaki Bight for 35 years, was because they’d planned to use an “adaptive management approach”.

Adaptive management is allowing an activity with uncertain effects and continually assessing it – essentially trying it out, seeing what happens and adapting the conditions accordingly, which was argued to be illegal under New Zealand law applying to the Exclusive Economic Zone and continental shelf.

Kiwis Against Seabed Mining chairperson Cindy Baxter wished TTR would just ‘go away’ after years of battling. TOM PULLAR-STRECKER/STUFF

Cindy Baxter is the chairperson of Kiwis Against Seabed Mining (Kasm), who were one of the parties who appealed the granting of consent, and said she was “unsurprised” with TTR’s desire to appeal the decision.

This is TTR’s second application to mine. It first applied and was denied in 2014, and Baxter was sick of them continuing to push despite denial and vocal opposition.

“I really wish that they would just go away – there’s a huge opposition,” she said.

“We’re standing on the shoulders of tens of thousands of people.”

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Save the Sepik from mining: learning from the past

Visiting the Sepik River and its people. Photo supplied.

Ken Golding | Echo Net | 21 September 2018

The people of the Sepik River in Papua New Guinea understand the threat to their lives and culture from the Chinese-owned copper and gold mine that is currently being proposed to be built on the Frieda River, a tributary of the headwaters of the Sepik River.

My partner Raine Sharpe, myself and Keith O’Neill have just returned from the remote Sepik River in Papua New Guinea. We were part of the Northern Rivers Folk Choir that responded to invitations from the people of The Sepik to live with them, share their culture and help alert the world to the threat to their lives from the copper and gold mine being proposed.

Rich culture

We were welcomed into their homes, their daily life and their rich and colourful culture. Sepik people are warm, generous, and intelligent with a great sense of humour. They are renowned for the quality of their artistic cultural expression and live an ecologically aware life described by PNG ABC journalist Sean Dorney as ‘affluent subsistence’.

The Sepik River is 1,200 kilometres long and is the largest uncontaminated freshwater system in the Asia Pacific region. Rising in the Central Highlands it winds its serpentine way through mountains, rainforest and wetlands to the ocean. People have lived on the Sepik for many thousands of years.

Poisoned river

The second-largest river in PNG is the Fly River. In the 1970s Australian mining companies built Ok Tedi, a huge copper and gold mine on the river’s headwaters. This mine became the scene of what is now recognised as the biggest ecological disaster in the world.

Discharging 80 million tonnes of contaminated tailings and mining erosion into the river system each year has caused 1,300 square kilometres of the river to be irrevocably damaged. People of the Fly River now suffer serious health problems with their main sources of food and water subjected to heavy-metal poisoning.

No social licence

I’m drawing the comparison between these two magnificent river systems because the mine proposed by the Chinese-owned Australian mining company PanAust that is preparing to build a gold and copper mine on the Sepik river system is as big, if not bigger than, Ok Tedi mine.

The people of the Sepik fear for their future and their way of life. They know about the damage to the Fly River and its people and are deeply fearful that the Freida mine is another Ok Tedi in the making. So far there has been minimal community consultation and the Sepik people consider the mine does not have a social licence to go ahead.

We have a deep sense of shame that an Australian company recklessly inflicted damage on the Fly River and its people.

The Sepik River is the lifeblood of its people. The children of the village we stayed with are healthy and vibrant. Their delight and laughter melted our hearts.

Professor Tim Flannery says he cannot think of a worse place for a copper mine. Surely we cannot allow an ecological disaster to happen again.

Raise awareness

To raise awareness and funds in support of the people of the Sepik we are holding an evening event Tales of the Sepik River in Mullumbimby on Saturday September 29 at 6.30pm.

If you want to know more about this event email raines@australis.net.

If you want to know more about the people of the Sepik, and the Frieda mine, go to Save the Sepik River and its people on Facebook.

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