Category Archives: Australia

Local Gold Miners Get Raw Deal From Australian Buyer

Jerry Sefe | Post Courier | September 19, 2018

A small scale gold miner in Morobe is now worried that he might not be able to get the sum of money worth his 4.6 kilogram gold given to an Australian gold buyer in 2013.
The miner (named) who is a local from Aseki in Menyamya district told Post-Courier that his gold weighing 4.6kg was given in exchange of payment and business to an international gold buyer named Chris Walker of Brisbane, Australia in 2013, but he has never received his complete payment up until today.
He said it was through the arrangement of PNG National Small Scale Miners Association Incorporation vice president and general secretary Joe Bronston that linked him including 15 other gold owners from various provinces to go into business with Chris Walker.
It is now after six years and he is still waiting for the complete payment of his gold.
He said Mr Walker has also taken 45kg of gold from the other 15 individuals and wanted them to keep topping up the gold until 100kg then he would move his business to Port Moresby and work with them.
“I was only given AUS$10, 000 (PGK 23,489.4) as a spending money according to Mr Walker and his wife Jessica Groff while 1.5kg of the total 4.6kg of gold was going to be my share in the business and rest of the payment was supposed to be given to me later,” the man said.
However nothing turned out the way he expected in the agreement between Mr Walker and him.
A detailed statement from Mr Bronston said he knew Chris Walker and Peter Walker for almost 20 years and have been living together as families in PNG in 1988.
However, Mr Bronston when speaking to Post-Courier described Mr Walker and wife Jessica of Noosa, Queensland as perpetrators despite their close family relationship.
Mr Bronston said one of the most talked about business between them was how to develop alluvial mining in PNG from which in 2010, Mr Walker came up with the plan to introduce PNG Bullion Exchange in PNG.
“I informed various miners in different parts of the country and we agreed to Chris Walkers plan and the first four day meeting was held in Brisbane to achieve the plan of producing 100 kilos of gold so it would give confidence to investors to come to PNG to set up PNG Gold Exchange trade centre” said Mr Bronston.
Mr Bronston said the negotiation with miners to go into business with Mr Walker was agreed by all and the trip was taken care of by Queensland customs Broker Glenys Gardener whom was contracted by Australian Coin and Bullion Exchange in Melbourne.
“I did 18 trips of gold delivery under my PNG Mining Department Export Permit as Geological Sampling to Walker in Brisbane. Meanwhile the gold had a purity rate of 89percent (gold purity), Mr Bronston said.
He said each time he brought the gold to Mr Walker, after confirming weight and genuineness, he then transports the precious metal to the Australian Coin & Bullion Exchange for analysis and sampling, where the gold is then refined to 99.99 gold purity.
“Until 2013 the miners began following up on the establishment of Gold Exchange Trading in Port Moresby as promised. Subsequently this led to the disappearance of the Walkers.
“I told them in one of the gathering of miners in Port Moresby that we must continue to produce and arrive at 100kg of pure gold then the establishment of PNG GOLD Exchange will be announced, by the time the 45kg pure gold was already in Brisbane.
“However I was reported to the detectives at Boroko police station by miners repeatedly by different miners who doubted this work program (100kg gold exchange) as they felt it would drag on”, Mr Bronston said.
He said some of the miners wanted money for their gold, others listened and followed what was said while a few took his families as hostage at one time.
“I stopped delivering when I noticed Mr Walker and his wife Jessica stopped responding to my calls and emails during the tussle.
“I even flew down twice to follow up but still no indication of their presence. They had their address changed and perhaps went into hiding,” he said.
He said the matter was also reported to the Noosa Heads Police station and a complaint was also filed with Detectives Chad Kereama and Jason Brown. The investigation has since taken four years and is still pending.

Advertisements

4 Comments

Filed under Australia, Financial returns, Papua New Guinea

Adani’s Australian Coal Mine in Trouble as Chinese Banks Refuse Loans

Image Courtesy: Tracey Nearmy/AAP

The proposed $22 billion project will have destructive impact on environment, including the Great Barrier Reef.

Newsclick | 6 December 2017

With three Chinese banks announcing that they will not be financing Adani group’s controversial Carmichael mine in Queensland, Australia, the mining giant’s ambitious project – worth $21.7 billion – appears to be doomed. Earlier this year, Australian banks had backed out of financing the project. Adani Mining is facing a financial crunch as 24 banks around the world have earlier refused to finance its mining ventures in Australia.

Adani’s extravagant expansion into Australian mining seems to be dogged by accusations of crony capitalism and destruction of environment, very similar to the ones in India for his Mundra SEZ project and mining activities. The opposition in Australia however has taken on a much more widespread scale.

Recently, Australian journalists who visited Mundra in Gujarat to study Adani Group’s activities were harassed by local police, presumably at the behest of powers that be.

The Carmichael mine has drawn the ire of Australians ever since Adani bought it in 2010. A recent survey showed that 62% people in Queensland opposed the Adani mine. There have been a series of protests in Brisbane, Sydney, Melbourne, Townsville, Cairns, Mackay and at Adani’s work sites near Belyando in Central Queensland. Such was the pressure built by public opinion that Queensland premier Annastacia Palaszczuk reversed the government’s previous position and pledged to veto a loan to Adani if re-elected. In March this year, 13 NGOs came together to form the Stop Adani Alliance which organized a National Day of Action on October 7. During November 20 and 24, a Stop Adani Shakeup week was observed to pressurize federal MPs into opposing the mine. All over Queensland, and even elsewhere, anti-Adani T-shirts, badges, caps and other protest markers can be seen on people.

Adani group has reportedly faced a series of regulatory actions in India for its riding roughshod over environmental and other laws. It has also been alleged that its explosive growth is largely due to Gautam Adani’s closeness to Prime Minister Modi since the latter’s stint as Gujarat Chief Minister. Recently, Australian Broadcasting Corporation’s investigation on its well known Four Corners programme, unearthed various dealings of Adani Mining through secret tax haven accounts in Cayman Islands and the British Virgin Islands.

The Galilee basin, where the giant mine, projected to be one of the world’s largest, is located contains an estimated 7.8 billion tonnes of coal. Adani group has claimed that the mine will have peak production of 60 million tonnes of coal per year by 2022. The company has acquired Abbot Point coal terminal near Mackay for $1.98 billion from the Queensland government and plans to build a 388 kilometer rail link from the mine to the port. The company is awaiting a concessional A$900 million loan from the government’s Northern Australia Infrastructure Facility (NAIF) for the rail link.

The most significant reason why most Australians are opposed to the mine is its environmental impact. The mine is estimated to generate 4.7 billion tonnes of greenhouse gases. It will also use 26 million litres of water every day severely depleting the groundwater in this drought prone region. The Great Barrier Reef, already under threat from warming of the oceans and their acidification, will also be affected by the mining activity. The project involves dredging of 1.1 million cubic meters of seabed from near the Reef.Experts have vigorously argued that this will have an adverse impact on the delicate ecosystem that sustains the Reef.

Adani Australia have argued that an estimated 10,000 jobs will be created in Queensland, which is currently suffering from severe unemployment. This claim has been supported even by Australian Prime Minister Malcolm Turnbull. However, Jerome Fahrer, an economist who appeared on behalf of Adani Mining before the Queensland land court, testified in 2015 that the project would create precisely 1,464 jobs.

The land where the mine is planned to be built belongs to the Wangan and Jagalingou traditional or indigenous people, and is part of 30,000 sq.kms land area for which they have filed a ‘native title claim’ in 2004. The W&J peoples have launched a long and complicated legal battle to oppose the Carmichael mine, and hearing is scheduled for March 2018.

Leave a comment

Filed under Australia, Environmental impact, Financial returns, Human rights

Australian govt using ‘aid’ money to promote their mining industry

Bruce Davis, left, and Fred Hess signing a memorandum of understanding at Frieda River last week. Looking on are East Sepik Province Governor Allan Bird, Ambunti-Drekkir MP Johnson Wapunai, Vice Mines Minister Bari Palme, women’s mentor, Fredah Wantum along with women from Paupe village and PanAust employees

Approval processes for any Frieda river mine have not yet been completed – but the Australian government is already spending ‘aid’ money to help ensure the mine does go ahead.

PANAUST, the beneficiary of this ‘aid’ subsidy, is, of course, an Australian company…

Long-term plan for women at Frieda River

PANAUST and the Australian government are working together to empower women through the Frieda River copper-gold project under a new initiative called the Papua New Guinean Women in Mining Project.

In terms of an agreement signed at Frieda River last week, the partners say a three-year work program will strengthen the participation of women in the development forum process and ensure women receive lasting benefits over the life of the mine and beyond.

“The project will provide a mentor to work with women from the Frieda River area to prepare them for participation in the development forum and help organise their governance and representative structures. Selected Frieda River employees will become women’s empowerment and safety champions,” PanAust said.

The partners will also work to build literacy skills, and promote cooperative approaches to decision-making, workloads and budgeting, leadership and coalition building.

At the signing PanAust managing director Fred Hess emphasised the role mining could play in supporting women.

“Mining, perhaps more than any other industry, has the ability to empower women in remote communities. At PanAust, we consider it our responsibility to encourage that development. At our operations in Laos, we have provided pathways for women to acquire trades, become leaders in the company and start small businesses. Our partnership with the Australian government will help us emulate this success in Papua New Guinea,” Hess said.

Australian high commissioner Bruce Davis said Australia was taking part to strengthen women’s participation in resource development negotiations.

“We will help build literacy and financial skills, as well as support women to take on leadership and decision-making roles in the development negotiations, to ensure they directly benefit from mining activities in the region,” Davis said.

1 Comment

Filed under Australia, Environmental impact, Financial returns, Papua New Guinea

Pacific Islanders call for Australia not to fund Adani coalmine

The village of Eita in Kiribati in 2015. Residents of endangered Pacific islands want the Australian government to stop funding Adani’s Carmichael coalmine. Photograph: Jonas Gratzer/LightRocket via Getty Images

Caritas says thousands face threats to their wellbeing, livelihoods and ‘their very existence’ due to rising sea levels

Naaman Zhou | The Guardian | 31 October 2017 

Pacific Islanders whose homes face eradication by rising sea levels have called on Australia to not fund the Adani Carmichael coalmine, as a new report reveals the worsening impact of climate change across Oceania.

Residents of the endangered islands have described their forced displacement as like “having your heart ripped out of your chest” as they called on the Australian government to do more to combat climate change.

A report released by international aid group Caritas on Wednesday found that thousands of Pacific people across the region faced “threats to their wellbeing, livelihoods and, in some places, their very existence” due to rising sea levels, king tides and natural disasters brought about by climate change.

In Papua New Guinea, 2,000 households across 35 coastal communities were displaced by coastal erosion over the past year. In Samoa, 60% of the village of Solosolo was relocated to higher ground.

In the Torres Strait, 15 island communities were identified as at risk over the next 50 years.

The mayor of the Torres Straight Island regional council, Fred Gela, described the forcible removals as like having your heart ripped out “because you are told you’re not able to live on your land”.

Erietera Arama resident of Kiribati who works for the Department of Fisheries, said he decided to visit Australia to ask its government to take action.

“We talk about the Adani coalmine,” he said. “That’s a new one. I think it’s not a good idea – it makes the world worse for all of us. It is inconsiderate of other humans on this planet.

“We didn’t think of Australia as a country that would do that. We looked at it as our bigger brother. Proceeding with that new mine is a sad move. We live together in the environment but it’s like they are ignoring us.

“We’re two metres above sea level. With the sea level rise, most of our lands have been taken by coastal erosion. We love our country and we want our children to live there as well, hopefully forever. It’s hard to talk about leaving the place where you belong.”

According to the report’s authors, the impact of coastal erosion and flooding reached “severe” levels in 2016, upgraded from “high” the year before. Climate change also made it “increasingly difficult to maintain the health and integrity” of food and water sources. Water scarcity was deemed a “serious slow-onset problem throughout Oceania”.

In terms of natural disasters, a month’s worth of rain fell in 24 hours in New Caledonia in November 2016, killing nine people, while flash flooding in Fiji after Cyclone Winston forced 3,000 people into evacuation centres in December 2016.

In Fiji, the report found that certain types of fish were becoming poisonous, potentially as a result of farming contamination or seabed mining operations.

“Earlier this year four people died in the island of Gau from fish poisoning,” said Leo Nainoka from the country’s social empowerment education program.

Global sea levels are expected to rise 30cm by 2050 compared with a 20cm average rise over the 100 years before 2000. But in certain areas of the tropical western Pacific, sea level rise has been four times the global average due to El Nino and associated weather effects.

“Australia needs to make a stronger contribution to fight climate change and its impacts,” the report says. “To reach our emissions reductions targets, Australian policies need to rule out any major new fossil fuel projects or the expansion of existing ones, as this would be inherently incompatible with meeting our global climate commitments.”

Leave a comment

Filed under Australia, Environmental impact, Human rights, Pacific region

Labor plans to force Australian mining companies to disclose taxes paid overseas

Labor says it will make large Australian oil, gas and mining companies disclose the taxes they are paying to governments in every country, including Australia. Photograph: Bloomberg via Getty Images

Exclusive: Mandatory reporting regime would apply to large Australian oil, gas and mining companies working overseas

Gareth Hutchens | The Guardian |30 October 2017

A Shorten Labor government would force Australian mining companies working overseas to disclose the taxes they are paying to foreign governments to extract their minerals.

The mandatory reporting regime would apply to large Australian oil, gas and mining companies, and be designed to ensure that communities in countries such as Papua New Guinea understand how many tax and royalty payments they are receiving and for which mining projects.

Labor says it wants Australia’s resource companies to be “good corporate citizens” and to maintain transparent accounting practices that combat corruption.

It says many of Australia’s neighbours, including Timor-Leste, Papua New Guinea, the Solomon Islands and Nauru, have multibillion-dollar resource projects that are operated by foreign multinationals but are home to some of the poorest people in the world.

Labor will announce on Tuesday an “extractive industries transparency plan” that will require large Australian companies to disclose the taxes they are paying to governments in every country, including Australia, and for every mining project.

Large companies shall be defined as a company that meets at least two of three criteria:

  • Total assets exceeding $50m
  • Annual turnover exceeding $100m
  • The average number of employees exceeds 250

A single or series of taxes and related payments within a financial year would have to be disclosed if the payments were worth at least $150,000.

Payments to be disclosed include: taxes on income, production or profits; royalties; dividends (except where the dividend is paid to a government as an ordinary shareholder); fees including licence fees, rental and entry fees; signature, discovery and production bonuses; production entitlements (such as profit resources) and payments for infrastructure improvements.

The scheme has been costed by the parliamentary budget office at $2.2m over four years. Between 80 and 100 companies would be affected. Subjected companies would be required to begin reporting payments to governments from 1 July 2020.

A multi-stakeholder committee would be established to help the government implement the reporting regime, including defining project-level reporting and establishing an online reporting mechanism to ensure public transparency.

Labor says the legislation would include equivalency provisions so companies captured by other jurisdictions due to cross listing on stock exchanges would only be required to produce one report. The scheme has been modelled on the extractive reporting regime in the UK.

Matt Thistlethwaite, the shadow assistant minister for Treasury, will announce the plan on Tuesday in a speech to the Australian Council for International Development’s national conference in Melbourne.

“Currently Australian companies do not meet world’s best practice for transparency and accountability,” he will say. “Labor is determined to change this.”

Mal Larsen, Oxfam Australia’s mining and extractives policy adviser, has welcomed the policy, saying he has been calling for something like this for a long time.

“This policy could help lift people out of poverty,” Larsen told Guardian Australia. “Australia would join the growing list of countries around the world that require large companies to reveal how much tax is being paid, in which country and for which mine.

“This sort of disclosure will allow the public to hold companies accountable for how much tax they pay and governments for how they spend it.

“Disclosure of tax payments is an emerging international standard. It is key to driving out corruption and building community faith that mining taxes are being spent on essential services like health and education.”

In May 2016 the Turnbull government announced Australia planned to join the Extractive Industries Transparency Initiative, an international standard for increased transparency and accountability in the oil, gas and mining sectors.

It will require Australia to disclose information on taxes and other payments made by companies to the Australian government as well as other information such as licences, contracts, production and exports.

Larsen says Labor’s policy goes further because it would require Australian companies to disclose the payments they are making to foreign governments, not just to Australia’s government.

Leave a comment

Filed under Australia, Corruption, Financial returns

Frieda river mining company in corruption investigation in China

Guangdong Rising Assets Management is under investigation for a series of bad investments including the purchase of PanAust and the Frieda river mining rights. Four people are already being prosecuted for corruption and now the former Chairman is in the spotlight over losses of more than $1 billion

Chinese probe big mine loss

Rowan Callick | The Australian | October 16, 2017

The former chairman of a Chinese state-owned enterprise has been handed over to prosecutors for investigation after the company’s investments in several Australian mining ventures lost more than $1 billion.

Li Jinming, who chaired Guangdong Rising Assets Management, which is owned by Guangdong province, was earlier expelled from the Communist Party following an investigation that began in 2014 over losses that the disciplinary inspection team described as “dreadful”.

The company was established 17 years ago with $2bn capital, the South China Morning Post reported, and it began investing in Australia after the Global Financial Crisis pushed down asset and commodity prices.

It acquired, through different subsidiaries, lead-zinc producer Perilya for $45.5 million, coal producer Caledon Resources for $500m, copper and gold company PanAust — with a massive prospect awaiting commitment in Papua New Guinea at Frieda River — for $180m, and rare earths producer Northern Minerals for $60m,

It also paid $15m for a large stake in gold and base metal explorer Hawthorn Resources.

Leading Chinese financial website Caixin reported that most of these deals had since made losses, with calls on further capital from GRAM.

Li Zezhong, who worked for GRAM for 11 years, ultimately as president, was then appointed mayor of Zhuhai, a thrusting city of 1.5 million on the western side of the Pearl River Delta, just north of Macau.

It was his successor at GRAM who urged a deepening of the investigation into the company’s management.

Last month it was announced that Li Zezhong was being investigated for “serious violations of party discipline,” believed to relate to his time at GRAM.

Four colleagues from his time at the company are already being prosecuted for corruption.

Caixin has reported that investigators are also seeking to interview Liu Facai, now living in Australia. He chaired the committee responsible for all state assets in Guangdong province when he led a team to Australia 11 years ago to explore investments in mineral projects.

Caixin said that he and his son, who was already living in Australia, introduced GRAM to firms in which the company went on to invest.

Leave a comment

Filed under Australia, Corruption, Financial returns, Papua New Guinea

AusAID to partner with mining industry to deliver ‘aid’

Peter Aitsi and Bruce Davis can’t keep a straight face – just one more way for the Australian taxpayers to subsidise their mining industry!

THIS WOULD BE HILARIOUS IF IT WASN’T SO PATHETIC

EVEN MONTY PYTHON COULDN’T COME UP WITH ANYTHING SO RIDICULOUS…

Aust to assist Newcrest facilitate projects in PNG

The National | September 1, 2017

AUSTRALIA has entered into a partnership with Newcrest Mining Limited to facilitate support on projects in Papua New Guinea.
Australian High Commissioner Bruce Davis and Newcrest country manager Peter Aitsi signed an agreement yesterday.
The first year will be committed to:

  • Scholarships for Diploma of Nursing;
  • Australian awards scholarships in midwifery;
  •  Workshops on extractive Industries transparency initiative;  and,
  •  A mineral economics course to be delivered under the Pacific leadership and governance precinct.

Davis said it reflected Australia’s focus on engaging businesses to assist in development challenges.
“The approach recognises that the private sector has the means and increasingly the motivation to contribute to the development outcomes as part of their core business,” Davis said.
“It also recognises that the private sector are key players in addressing and improving the business environment, not just for themselves but also for their suppliers, buyers, employees and their employee’s families.
“Newcrest is on such company. Newcrest’s confidence in Papua New Guinea as an investment destination matches the Australian High Commission’s positive long-term outlook for Papua New Guinea.”
Aitsi said the company’s commitment to development was for the long-term.
“Newcrest already has a long record of engagement in PNG. And with 40 per cent of our global assets in this country, we hope to be a partner to Papua New Guinea for decades to come,” he said.

Leave a comment

Filed under Australia, Papua New Guinea