Author Archives: ramunickel

New Petroleum Minister says no more coffee shop deals

Kerenga Kua says there will be no more coffee shop deals – like the one between Peter Botten and Peter O’Neill where they agreed the disastrous and unlawful State investment in Oil Search shares (funded through the notorious UBS loan) over coffee at the Grand Papua hotel.

PNG LNG Review Must Focus On People, Says Kua

Elias Nanau | Post Courier | June 18, 2019

A sigh of relief for the aggrieved landowners and key stakeholders of the recently signed Papua LNG (liqued natural gas) – the gas project agreement will be “reviewed”.

This was the ultimate assurance from the Petroleum Minister Kerenga Kua during the handover-takeover ceremony between him and outgoing minister Dr Fabian Pok in Port Moresby yesterday.

He said the review should be done to satisfy the government and people that “it was signed in compliance with all applicable laws” and protocols and key institutions like the Bank of PNG and Treasury had been involved equitably and statutorily.

He drew applause from the conference room.

“We owe it to our people,” he said. “Leadership and government must combine and deliver back to our people.”

Mr Kua gave the assurance in front of a packed conference room of landowners, oil and gas company executives and department staff at Hideaway Hotel.

Mr Kua said although there were market forces, they would not run away and the government and people must approach it judiciously.

He said the petroleum industry was one of the biggest revenue earners but asked: “Is the level of revenue we generate enough?”

Mr Kua reminded the department staff that while there would be work to review projects and legislation.

“There is that urgent need to source money to fund the visions of the government as outlined by Prime Minister James Marape,” he said.

He noted the bold statements of making PNG the richest black nation and to take back PNG.

“The challenge or way forward has been defined, now we need money. It must start somewhere, you cannot wait,” he said.

Mr Kua said his key performance indicators would be defined by the two guiding statements made by the Prime Minister.

“It is incumbent of the leaders of today to make such vision statements,” he said.

He reminded people they may think its “insurmountable and unachievable” but 70 years ago when Kondom Agaundo from Chimbu told expatriates the next generation would learn and communicate fluently in English, it happened and today the country has a load of “intellectual workhorse”.

He appealed to petroleum staff : “We must restore the strength and prominence of the department. “It must be at the forefront of the economic departments.”

Mr Kua told everyone he did not want to have meetings with investors or anyone that is work related outside of the department and staff.

“Let’s meet at the office rather than at the coffee shop,” he said.

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Miriori Says Bougainville Executive Council Was Misled

Philip Miriori (ABC News: Eric Tlozek)

Post Courier | June 18, 2019

The Autonomous Bougainville Government (ABG) Executive Council were allegedly misled at the time it resolved to support the developers proposal and consequential mass amendments demanded to the Bougainville Mining Act (BMA).

The Explanatory Memorandum that has emerged, long after the fact, claims in its first two principal reasons, that developer has developed and operated some of the largest mines in the world.

It now turns out that neither reason advanced was correct.

The truth is starkly different – the developer in question has never financed, developed or operated a large mine, to say nothing of the largest mines in the world.

Philip Miriori the Chairman of Panguna landowner company, Special Mining Lease Osikaiyang Landowners Association (SMLOLA), indicated that, had the amending legislation passed, Bougainville would have given away a 4o per cent interest in Panguna and a monopoly over all large scale mining projects in Bougainville, to a person who does not have the relevant skills to finance, build and operate a mine like Panguna or help the ABG.

“The third reason advanced was even more false and misleading, as it claimed that the developer had also raised billions of dollars and so will raise all the money for Panguna for the ABG.

“The developer obviously has not raised billions of dollars as claimed, in fact he has only ever done one public company capital raising of a very modest US$30m, again more than a decade ago.

“So the three key reasons the BEC resolved to support the developer, that he had financed, developed and operated the largest mines in the world.

“And put forward the proposed changes to the BMA, which have now been rejected by the Legislative Review Committee because they were all grossly false and designed to deceive all of us here in Bougainville,” he said.

SMLOLA consultant Lawrence Daveona said the scenario suggest to us is that we all need to sit down collectively and find a workable solution.

“This is a solution that can actually be delivered and will allow us to finally move forward with the redevelopment of Panguna to eventually see all of Bougainville prosper,” he said.

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Papua LNG Gas Agreement To Be Reviewed

New Petroleum Minister Kerenga Kua

Post Courier | June 17, 2019

A sigh of relief for the aggrieved landowners and key stakeholders of the recently signed Papua LNG, the gas project agreement will be “reviewed”.

This was the ultimate assurance from the Petroleum Minister Kerenga Kua pronounced during the handover take over ceremony between him and outgoing minister Dr Fabian Pok today in Port Moresby.

He said the review should be done to satisfy the government and people that “it was signed in compliance with all applicable laws” and protocols and key institutions like the Bank of Papua New Guinea and Treasury, to name a few have been involved equitably and statutorily.

Former Petroleum Minister Dr Fabian Pok meanwhile has issued caution that by 2024 the supply of gas world-wide will increase and demand will be less.

“If we think we have enough that the world can wait than we have a serious problem,” he said.

He added that the Papua LNG agreement will see the country reap more than what the PNG LNG in the highlands had to offer.

Dr Pok admitted there had been a lot of criticisms and critiques about the Papua LNG agreement but he was convinced that it was for the better of the country and his team had put in substantial effort to ensure it was beneficial to the state and key stake holders like the Gulf Provincial government and landowners.

“There is nothing sinister about it,” he said.

“When you sit on the chair, you are bound by what happens around the world,” Pok said referring to international gas markets supply and demand which influence business.

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Cooks govt uses final hours of Parliament to pass seabed bill

Cook Islands Democratic Party leader, Tina Browne Photo: Cook Islands Democratic Party

Radio New Zealand | 18 June 2019

A bid by the opposition in the Cook Islands to have a controversial seabed mining bill face further scrutiny has been quashed.

The Cook Islands News reports that, instead, the government forced it through parliament before adjourning indefinitely.

Opposition leader Tina Browne said her party did not oppose the bill, but she was not satisfied with the consultation process.

She wanted the bill put before a select committee.

Ms Browne said a major concern was how the bill gives the minister responsible for seabed minerals full authority to grant an exploration licence.

She raised concerns about fairness, given the government would also be one of the applicants – as well as the fear of officials being “tempted to do wrong things” with such power.

The government said the bill underwent an extensive consultation process.

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Ramu mine gets notice to stop moving chromite

The National aka The Loggers Times | June 14, 2019

MADANG’S Ramu nickel mine has been issued a notice to stop transporting chromite from the mine area in Kurumbukari to Lae for export.

The Madang government issued the notice to Ramu NiCo management last Thursday following concerns raised by locals who use the Yuriya River.

Madang acting deputy provincial administrator Markus Kachau said the notice issued was for the mine to stop transporting chromite until the Yuriya Bridge had been fixed by the Works Department.

Kachau said the trucks transporting chromite had direct contact with the chromite before leaving Kurumbukari for Lae and had chemicals on them and once they came in contact with water the chemicals would pollute the area.

Madang works manager Andrew Kendaura said they had created a bypass for vehicles to cross while the bridge was being fixed.

Kachau said other vehicles could use the bypass but trucks carrying chromite would be barred.

Mathew Yakai, on behalf of the Ramu NiCo, said they would adhere to the notice.

He said the mine had created a job opportunities for locals and was committed to building a good relationship with its development partners.

Yakai, however, said having good communication and understanding to deliver the project was vital for the company and they needed to limit the stoppages to their operations.

Kachau said people’s health and welfare was the priority and the provincial government would do all it could to protect the people along the Yuriya river.

Kendaura said material had been brought in from Madang and Lae to fix the bridge.

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OUR RESOURCES – THEIR PROFITS

ACT NOW!

It is time for Papua New Guinea to stop relying on destructive large-scale extractive industries and build an indigenous economy based around our land and our people.

Projects like the ExxonMobil LNG, logging and mining don’t benefit our people or our economy as the revenues and profits are kept overseas.

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Australian-based company’s PNG mine could pose big environmental risk

The Sepik river in Papua New Guinea. Serious environmental and social concerns are being raised about a mining project by Australian-based company PanAust. Photograph: Emmanuel Peni

Gold and copper project for Sepik region also has potential to cause social conflict and unrest, report says

Lisa Martin | The Guardian | 15 June 2019 

A gold and copper mine proposed for the Sepik region in Papua New Guinea by an Australian-based company threatens to destroy the health of a major river system, poison fish stocks and cause violent unrest, a report has found.

The Chinese-owned company, PanAust, says the Frieda river project could have a 45-year life span and generate A$12.45bn in tax, royalties and production levies for the PNG government and landholders.

But the report, from research centre Jubilee Australia and Project Sepik, raises serious environmental and social concerns about the mine.

“The lack of information released by the company about its environmental management plans are continuing to cause uncertainty about whether the company’s environmental management plans will be fit for purpose,” it says.

“The potential for this project to lead to damaging social conflict and unrest is real and must be taken seriously.”

Papua New Guinea has a chequered mining history, including an environmental disaster when the BHP Ok Tedi copper mine’s tailings dam failed and the decade-long civil war on Bougainville, which was triggered by the Rio Tinto majority-owned Panguna copper mine and cost an estimated 20,000 lives.

The report notes that one of the PanAust project’s biggest challenges will be building a safe storage facility for the mine’s tailings (waste material left over after separating the valuable mineral from the ore) to prevent acid rock drainage.

That occurs when mine waste is exposed to oxygen and produces sulphuric acid, which dissolves heavy metals such as mercury from nearby rocks, which can then leach into rivers.

The report says the size of the ore body, combined with the relatively low grade of copper in the deposit, means the mine will generate substantial tailings.

Locals protest against the proposed mine project at the Sepik river in Papua New Guinea. Photograph: Project Sepik

“The inaccessibility of the terrain will pose challenges when it comes to finding a large enough site or sites for storage,” it says.

“The extremely high rainfall in the area and the fact that the area is a site of seismic activity add to the risks of a dam collapse. The technical complexity of the feat facing the mining engineers, the extremely large costs involved, and the weather and seismic situation all adds up to a very expensive environmental management problem and one with considerable risks.”

Locals also have concerns about environmental damage from an increase in the number of large vessels operating on the Freida river.

PanAust promised in April it would shortly release an environmental impact statement to nearby villages, but researchers say it has not done so.

In response to to questions from Guardian Australia, the company said PanAust had not received a copy of the Jubilee report and “as such, the company is not in a position to comment on its contents”.

It did however say that PanAust had submitted its plans and an environmental impact statement to PNG regulators and was working with them on its approval.

The report also accused PanAust of a flawed consultation process with indigenous communities downstream from the mine which has created an “atmosphere of animosity and lack of trust” and resulted in acts of sabotage.

“There are reports of official (mainly police) intimidation of anti-mine activists,” the report says.

Map showing the location of the proposed Frieda River mine. Photograph: Jubilee Australia

“In 2017 a youth leader from Oum 2 village led a group of young men to attack a tugboat and pontoon with homemade wire sling shots.”

In October researchers visited 23 nearby villages, where locals repeatedly raised concerns about river and fish health as a result of increased sedimentation from increased tugboat traffic connected with the project.

The Freida river joins the 1,126km Sepik river, which flows across the provinces of West Sepik and East Sepik provinces.

The local economy is built on the sale of sago (starch from a tropical palm stem), fish, freshwater prawn, eels, turtles and crocodile eggs. Crocodiles are also harvested for their skins and teeth. Locals are worried about the mine affecting their food security, the report says.

In a company announcement in December, PanAust characterised the mine project as a “nation building development”.

It has promised 5,000 jobs in construction and 2,100 in mining, and estimates there may be 30,000 more indirect jobs.

“Host communities, especially in rural areas, will benefit from access to improved transport, telecommunications, health, education and government services that will support a higher quality of life and greater social participation,” the company said.

“More broadly, training and employment of Papua New Guineans will provide the skills and capacity to support the nation’s future development and prosperity.”

The company said a final investment decision would be linked to financing and fiscal terms agreed with the PNG government during the approvals phase.

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