Category Archives: Corruption

Landowner Calls For Investigation Into Warden’s Hearing

Government Urged To Intervene.

Yombi Kep | Post Courier | April 17, 2019

A landowner in Porgera is calling for investigation into the Mining Wardens Hearing held at Paiam Sports Oval in Porgera, Enga Province on Tuesday 2nd April 2019.

Landowner and former member for Lagaip-Porgera, Opis Papo is supporting the allegations made by Justice Foundation Chairman Jonathan Paraia that the illegal miners were unduly influenced to support Barrick Niugini Limited’s application to renew their SML and other tenements.

Mr Papo made the call after reading a report in Post Courier on the 15th of April 2019 at page 25 titled “Barrick refutes claim”.

According to the report Barrick Niugini Limited (BNL), the majority owner and operator of the Porgera gold mine has dismissed an allegation describing it as entirely untrue that it supports illegal mining. Barrick further said they did not condone illegal mining in any form and has consistently sought in cooperation and partnership with the government to discourage people from engaging in this activity which is not only unlawful but extremely hazardous.

However, Mr Papo said that even though everyone in Porgera including Jonathan Paraia and himself do not support illegal mining in Porgera, they are genuinely concerned about the conduct of Barrick in appreciating the illegal miners at the recent wardens hearing at Porgera.

“The illegal miners support for Barrick was never an isolated event, it was done in the full knowledge and active support of Barrick, whereby in front of thousands of people, the media and government officials, the Barrick’s senior manager, Timothy Andambo publically thanked and appreciated the support of the illegal miners in their quest to renew their license to mine for another 20 years.”

He added that the Government must now conduct an investigation into this incident as it has been spending millions of kina since 2009, to police illegal mining in Porgera and developer Barrick has undermined firstly, the government’s costly effort and secondly such conduct may have breached relevant PNG laws.

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Electricity from hydropower, solar and wind is always better than coal

Yaengolism Yalanem |The National aka The Loggers Times | April 10, 2019

PAPUA New Guinea is blessed with numerous pristine mountains and rivers, with high rainfall in the sense that we can get hydropower anywhere in the mountainous region.

Even wasted energy from the LNG is not utilised.

The commercialisation of the LNG wasted gas energy is optimal as in the case of gas-power commercialisation by Dirio Gas & Power Company.

Hydropower is wasted energy when not utilised. The high rainfall in most areas of the country provide for numerous rivers, all with good volume and flow rate.

These can provide both a source of clean, sustainable power, water for export and carbon credits. A single dam on the Purari River, for example, can provide five times the required on and off grid current power requirement for the country, but instead they have resorted to the coal seam west of Herd Base up the Purari River for the coal-fired power by Mayur Resources.

Climate change is a major threat to livelihoods in PNG.

Gulf Governor Chris Haiveta reiterated in The National on March 22 that coal was a base-load power while energy sources like solar, hydro and wind fluctuates.

Is base-load power really relevant? Because solar and wind are intermittent, hydro can be used to balance intermittent solar and wind, but experts say the term is a “dinosaur” that has been misunderstood and that no longer can apply to our dynamic energy market. Demand varies hugely and energy production needs to be responsive.

Coal-fired power stations can take days to fire up from cold to full capacity and when demand slumps during off-peak periods, shutting down isn’t an option.

So when these power plants are being built in PNG, a market solution will be created. To stop them from having to turn off overnight, the regulators and the operators will offer very, very low-cost electricity for consumers to run their electrification systems, which will in turn sustain the ‘base-load’ on the power station.

The thought of producing clean coal is just a notion made by the coal company and its proponents and promoting coal as clean is a little bit just like an advertising slogan. As the saying goes, whoever fights monsters should see to it that in the process he does not become a monster.

Power-lust is a weed that grows only in the vacant lots of an abandoned mind.

Clean energy will only be generated from hydro, solar, wind, tide, geothermal and bio-fuels.

By then, the energy from fossil fuel is replaced by clean energy and environmental degradation and climate change is minimized.

Remember not to be charmed into promises or offers to receive any property or benefit for your greed to satiate your desires.

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O’Neill Loses in High Stakes Battle for Control of US$1.4b PNGSDP

Papua New Guinea state fails to wrest control of US$1.4b stake in PNGSDP

K.C. Vijayan | The Straits Times | 5 April, 2019

The government of Papua New Guinea (PNG) has lost its protracted battle in the Singapore High Court to wrest control of an entity with assets worth about US$1.4 billion (S$1.8 billion) that were spawned from a deal inked with the “largest mining company in the world”.

Justice Vinodh Coomaraswamy has ruled in favour of PNG Sustainable Development Program (PNGSDP) company, saying the state of PNG had failed to prove it had a deal with PNGSDP’s co-founder BHP Minerals Holdings, for joint control to develop PNGSDP assets.

It also failed to prove that there was a charitable trust that allowed the state to intervene.

“I have found that neither the agreement nor the trust exists. The pleaded breaches of the agreement and the trust must correspondingly fail,” Justice Vinodh said in decision grounds on Tuesday.

The outcome means PNGSDP is free to carry out its objectives under the control of its independent board according to the 2001 contractual framework, without interference from the state.

Justice Vinodh, in his 149-page judgment, addressed each of the arguments made as he explained why the state had failed in its bid to wrest control of PNGSDP from its independent board.

“I acknowledge I found the state’s narrative compelling and its logic attractive. But the essential problem… is that this narrative stands alone and is unsupported by the evidence,” he said.

The court examined each key plank of the state’s case and found in addition that none of the state’s witnesses pointed to the existence of a partly oral agreement, much less to the terms of that agreement.

The court found that in the context of a “sovereign nation” and “the largest mining company in the world”, it was likely that the parties would have entered into written contracts “definitively and exhaustively setting out the precise terms actually agreed, instead of exposing their minds to the vagaries of memory and ambiguity inherent in a partly oral agreement”.

The high-stakes court battle involved law heavyweights on both sides. Defending PNGSDP was a team led by Senior Counsel Philip Jeyaretnam from Dentons Rodyk & Davidson while WongPartnership’s Senior Counsel Alvin Yeo led the team representing the PNG government.

PNGSDP was incorporated in Singapore in 2001 with two shareholders: the state of PNG and BHP Minerals Holdings and was meant to enable BHP to divest its shares in mining company Ok Tedi Mining to PNGSDP.

Both parties intended PNGSDP to hold BHP’s shares in Ok Tedi Mining and apply the derived income to promote sustainable development in PNG.

BHP owned 52 per cent and the state 20 per cent of the mine, which was rich in gold and copper and highly profitable.

The judge noted there were several reasons PNGSDP was incorporated in Singapore and these include its robust corporate governance regime.

In 2012 and 2013, PNGSDP made material changes to its corporate governance framework which diluted the state’s powers of control and oversight over the company.

The PNG government sued to reverse the changes.

It argued, among other things, that it would not have agreed to form PNGSDP if the company was free to cast off the state’s rights of control and oversight.

PNGSDP countered that the structure of the parties’ written agreement left no scope for such a critical aspect of PNGSDP’s corporate governance framework to be left “entirely undocumented in that suite of contracts and to be the subject of an oral agreement”.

It added that the common intention in PNGSDP’s formation was to eventually make it a self-run and self-perpetuating organisation and the changes made in 2012 and 2013 were the next step in effecting the common intention.

Justice Vinodh said the dispute is “about corporate governance of PNGSDP”.

He added: “For all the reasons set out, I hold the state fails entirely in its claim against PNGSDP. It is not entitled to the relief sought.”

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Mining destroying land and wrecking locals’ health in Solomon Islands

The stricken Solomon Trader

Michael Morrah | Newshub | 1 April 2019

Residents living near a UN world heritage site in the Solomon Islands say mining is destroying their island’s environment and heritage, but they feel powerless to prevent it.

Oil from a grounded mining ship has spoiled beaches and reefs on Rennell Island, and some residents say their children have suffered fevers and skin irritations.

Resolve Salvage Master Stewart Miller says the daily journey by salvage experts to the stricken Solomon Trader includes “people from the United States, UK, Spain and Portugal” all helping to vacuum up oil that’s still on the vessel.

They’re also training locals to help them clean up the blackened beaches.

It’s easy to see why the damage to this marine environment will be so significant.

Old sheets of plastic covered in thick, tacky heavy fuel oil from the Solomon Trader, show how the oil attaches to the reef below.

At low tide the evidence of that is clear, rocks and coral smothered by oil.

But not all impacts are quite so noticeable; rainwater tanks, even those high on the cliffs above the vessel, are not safe.

This causes some of the most vulnerable, like Abatai resident Ileen Tonga’s children becoming ill with “fever, red eye, diarrhoea and headache.”

Further up the road from the grounding is Lake Tegano, where families bathe and catch fish, and children play.

It’s a world heritage site and UNESCO says oil hasn’t reached here, but it’s yet to send anyone to do actual testing.

Chinese firm Bintan Mining got approval to mine the area in 2014.

Local teacher Sina Zeal says the firm offered landowners 20,000 Solomon Island Dollars, or $3,600 New Zealand dollars to dig up their family gardens, which many accepted and now regret.

“They are taking out our soil, land, our heritage, everything. That $20,000 (Solomon Island dollars) is nothing compared to the soil they take.”

She says attempts at taking legal action have failed.

“We’re fighting against the government. They won’t do anything.”

Incredibly, amid the current crisis, the Government has given Bintan two more prospecting licences on different islands.

The Minister in charge refused to talk about it saying he was busy with the elections.

The Government’s said it’s getting “virtually no economic return from the mining, describing that as “immoral and unacceptable”, but it’s done nothing yet to halt operations.

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Anger after Solomon Islands miner involved in spill gets new licence

MV Solomon Trader oil spill on Rennell Island, Solomon Islands. Photo: The Australian High Commission Solomon Islands

Radio New Zealand | 22 March 2019 

Transparency Solomon Islands says it’s concerned about new mining licences to a company at the centre of an environmental disaster.

The licences given to Bintan Mining Solomon Islands are under fire amid a cleanup of an estimated 100 tonnes of its oil spilled into a marine reserve.

Since a ship contracted by Bintan grounded on a reef off Rennell Island in early February, the company has faced widespread criticism.

But on 8 March, just one day after Prime Minister Rick Hou threatened to put it on an international blacklist, Bintan was issued two mine prospecting licences.

The licences, which were confirmed by the Director of Mines, Nicholas Biliki, are in the islands of Isabel and San Jorge in Isabel province.

Transparency Solomon Islands said Bintan’s licences should be revoked because of the damage done on Rennell.

“Why issue the Licence to a company we know how incapable and irresponsible the company is when it comes to risk sharing of benefits, management and capacity to deal with any disaster,” the NGO said in a statement.

Meanwhile, officials estimate it will take at least two months to salvage the grounded ship.

Mr Biliki declined to be interviewed on Thursday but said he would issue a statement to local media.

The Mining Minister, Bradley Tovosia, appeared to have disconnected his office phone after repeated calls from RNZ Pacific.

Officials estimate it will take at least two months to salvage the ship, the MV Solomon Trader, with the spill contained only this week.

Clean up efforts after the oil spill off Rennell Island in Solomon Islands. Photo: Supplied/ Derek Pongi

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Bougainville President launches stinging attack on RTG

A lake in the pit of the long defunct Panguna mine in Bougainville. Photo: http://www.travelinspired.co.nz

President John Momis is stinging in his criticism of RTG Mining but the same critique surely applies equally to his own preferred option, Caballus Mining, and the previous horse he backed, BCL…

Radio New Zealand |19 March 2019 

The government in the autonomous Papua New Guinea region of Bougainville has dashed any hope it would work with the Australian miner, RTG, accusing the company of bribery.

The Bougainville government and RTG are promoting unrelated schemes to re-open the Panguna mine.

After a meeting between the two parties earlier this month, RTG’s chairman Michael Garrick felt they got a good hearing and there was a chance they’d work together in re-developing Panguna.

But Bougainville President John Momis said his government is emphatically rejecting the offer, and accuses the company of insensitivity and disregard for the customs, culture and sacrifice of all the people of Bougainville.

He said RTG’s achievements as a miner are limited and investors have no faith in its ability to deliver.

Granting a mining lease to RTG would pose an intolerable risk, Mr Momis said.

Mr Momis said payments and loans the government understands that RTG gave to members of one particular group of landowners, the Special Mining Lease Osikaiang Landowners Authority, constitute bribery, as do similar offers made to his government during the recent meeting.

Relevant agencies in PNG and Australia would be notified, he said.

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Wafi-Golpu land dispute: The other side of the story

Lorenitz Gaius | The National aka The Loggers Times | March 18, 2019

IT appears that some people, like one PK Anding, had lately, been vocal and supportive of the Piu Incorporated Land Group’s claim of ownership of the Wafi-Golpu project land. PK Anding had even gone as far as to mention that the Lutheran Church had written to the prime minister informing him of its support of Piu’s claim of ownership.

Further to my previous letter to the editor, I briefly mentioned that the claim by the Piu Incorporated Land Group, led by chairman Martin Tapei, was thrown out by the Supreme Court. A brief synopsis of the case is provided below for anyone out there to appreciate the origin of the Piu Incorporated Land Group claims of ownership over the 50,000 hectares of customary land.

On Feb 22, 2001, Piu ILG applied to the Department of Lands and Physical Planning for a special agricultural business lease (SABL) over the Wafi-Golpu project land comprising of 6240 hectares. This was done without the knowledge of the people of Yanta, Hengaybu and Babuaf people, including the other seven villages in the area.

On July 24, 2001, an SABL lease was granted to the Piu ILG by the minister for lands under the Land Act comprising of 50,000 hectares instead of the 6240 hectares applied for. This grant was vehemently disputed by the Yanta, Hengabu, Babuaf people as well as the other known seven villages within the area.

On May 18, 2003, following pressures and protests by these groups within the 50,000 hectares of land, the new minister for lands and physical planning intervened and revoked Piu’s SABL lease. His decision was based on the non-compliance of the requirements and provisions of the Land Act under Section 10 and 102.

On Nov 19, 2004, the Piu ILG, not satisfied with the minister’s revocation of its SABL lease, applied to the National Court for judicial review for which leave was granted on May 5, 2005. The minister’s revocation was cancelled and Piu’s ILG title was restored, albeit temporarily.

On Aug 29, 2005, Yanta, Hengabu, Babuaf and Towangola appealed to the Supreme Court for a judicial review of the National Court order of Aug 18, 2004. The appeal was upheld and the National Court judgment was declared void, and the SABL lease granted to Piu on July 24, 2001, was declared null and void.

So to whoever is still supporting the Piu ILG claims of ownership over the Wafi-Golpu project land, I hope the above information gives you a clear picture of the situation. Questions should be asked about how Piu’s claim of 6240 hectares ended up with 50,000 hectares of customary land, especially when the land is communally owned?

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