Category Archives: Papua New Guinea

BCL wants to bully Bougainville into reopening Panguna

Has BCL not learnt from history that Bougainvilleans do not like being bullied!

BCL takes Bougainville Govt to court over licence non-renewal

Radio New Zealand | 16 February, 2018

Mining company Bougainville Copper Ltd is taking an arm of the Bougainville government to court.

This came after the autonomous government in the Papua New Guinea region announced late last year a moratorium on mining at Panguna, which had been abandoned in 1989 after the civil war started.

Two companies are vying to re-open Panguna but Bougainville President John Momis said to get the nod, the successful company must first win the trust of the people and BCL is yet to do this.

Meanwhile a mining wardens meeting in central Bougainville in December turned down BCL’s request for its exploration licence to be extended.

But the company is not giving up and secretary Mark Hitchcock says they want the licence restored, hence their application for a judicial review.

“We have taken the regulator , which is the Bougainville Government, as the Department of Mineral and Energy Resources, to court. We are seeking leave to apply for a judicial review of that decision, to not renew the exploration licence.”

The Bougainville government is the main shareholder in Bougainville Copper Ltd, with 36%, after it was given the lion’s share of equity by Rio Tinto when that company walked away from involvement in BCL two years ago.

Mr Hitchcock say the ABG leadership has told him that the company has to do what it has to do to protect the interests of all of its shareholders.

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Chinese looking to cut costs for Frieda river mine

What will be the costs for the environment and the mighty Sepik river as PanAust looks to “decrease capital expenditure”?

Frieda River upside options explored

PNG Industry News | 16 February 2018 

THE Frieda River copper-gold project in Papua New Guinea’s Sandaun Province represents PanAust’s long-term strategic growth opportunity.

This was said by PanAust managing director Fred Hess when he presented the company’s quarterly report for December 2017 this week.

[PanAust is wholly owned by Chinese State company, Guangdong Rising Assets Management Co. Ltd (GRAM)]

“In 2017, we made strides towards making the project a reality through identifying opportunities to increase the value of the project, decrease capital expenditure, and reduce its overall risk profile. 

“We will continue to evaluate these opportunities in 2018,” Hess said. 

The company says it continues to liaise with PNG authorities on Frieda River following lodgement of a special mining lease (SML) application and environmental impact statement (EIS) with the Mineral Resources Authority (MRA) of Papua New Guinea and Conservation and Environment Protection Authority (CEPA) of PNG, respectively in 2016.

“The overall approval and permitting process for the SML application and other permits and approvals is now being coordinated by a government appointed state negotiating team, chaired by the Department of Mineral Policy and Geohazards Management.

PanAust says it is investigating opportunities to increase the value of the project and access alternative development pathways to decrease capital expenditure and reduce the overall Project risk profile. Study work to investigate these opportunities continued throughout the quarter, and indicate several potential pathways for value enhancement. The outcomes of this work will inform a decision as to whether an update to the project’s SML application will be made.

Hess added: “Looking to the year ahead, PanAust will look to further strengthen the relationships that have become integral to the company’s success, and are synonymous with how it conducts itself where ever it operates.

“The common currency of PanAust’s success is the strength of its relationships; relationships with our employees, communities, host governments, suppliers, peers, and partners. These relationships depend on trust and consistent transparent communication. This is what pushes PanAust way ahead and will continue to do so throughout 2018,” Hess said.

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Filed under Environmental impact, Mine construction, Papua New Guinea

Tolukuma mine liquidated

“Asidokona Mining Resources is reputable, committed, has integrity, and capacity” said then Mining Minister, Byron Chan when the government sold the mine in 2015

Who in the Mineral Resource Authority is going to take responsibility for this monumental mess?

SEE ALSO

Tolukuma mine purchased by Asian finance company with no mining experience

More farce over government’s botched sale of Tolukuma mine

Tolukuma future looks bleak, despite MRA spin

Post Courier | February 13, 2018

One of Papua New Guinea’s gold mines, Tolukuma, was liquidated last week after a service provider took them to court for non-payment of bills totaling US$233,844 last year.

The National Court ordered on February 08, 2018, that:

  • Tolukuma Gold Mines Limited is placed into liquidation by this Court under the provisions of the Companies Act on the ground that it just and equitable that the company be placed into liquidation.
  • Andrew Pini of Pini Accountants and Advisors is appointed to act as liquidator of Tolukuma Gold Mines Limited.
  • Tolukuma Gold Mines Limited is to pay Hevi Lift Limited and IPI Catering Limited’s costs of and incidental to the proceeding.
  • The time of the entry of these orders is abridged to the date of settlement by the Registrar which shall take place forthwith.

Liquidator Andrew Pini confirmed yesterday that the National Court last Thursday appointed his accounting firm to take on the liquidation process effective immediately.

Hevi Lift took the matter to court in October 2017 for their outstanding of US$233,844 owing since June last year. Two other companies, IPI Catering and Pacific Development Contractors submitted in support their statements to the court, as they were also owed K1.6 million and K1.8 million respectively by Tolukuma Gold Mines.

“I don’t know exactly how much they owe the creditors or service providers, what I intend to do immediately is make an assessment of the real debt figure and then will put out a report,” Mr Pini said yesterday.

“I will visit the mine to start our process of liquidation, but for now I have come up with directions on how we can immediately start. I have put out public statements to all creditors of the company to come and lodge their claims using the prescribed claim Form 43 of Schedule 1 of the Companies Regulations 1998.

“In accordance with Regulations 21 and 22 creditors of the company are required to lodge their claims by 5pm Wednesday March 14, 2018. After this, then I will ascertain the real debt figure for the mine.”

A Singapore-based Asidokona Mining Resources, a private company, bought the Tolukuma gold mine in Central Province for K81.35 million to recapitalise and eventually restart it. They took over from Petromin in 2015.

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Nautilus Minerals misleads the world over machine testing

This Auxiliary cutter has been tested in a large puddle NOT the extreme conditions it will face at 1500 metres

Nautilus Minerals has been proudly trumpeting to the world the successful completion of the ‘submerged trials’ of its giant mining machines. Nautilus though has been carefully to omit one crucial fact about these ‘successful trials’, they have been conducted in a large puddle NOT in the extreme conditions of pressure, cold and darkness the machines will experience at a depth of 1500m.

Nautilus still has no idea if the machines can work in those conditions, just as it has no idea what the environmental impacts of the proposed strip mining will be… 

Submerged Test of Seafloor Mining Tools Completed

Maritime Executive | 12 February 2018

Nautilus Minerals has successfully completed submerged trials of its seafloor production tools in Papua New Guinea.

The company plans to use the tools to cut and extract high grade copper and gold from the seafloor at the Solwara 1 Joint Venture’s project site in the Bismarck Sea. Solwara 1 is expected to be the world’s first commercial high-grade seafloor copper-gold mine project. The site has indicated resources of one million tons grading 7.2 percent copper, five grams (0.18 ounces) of gold per ton, 23 grams (0.81 ounces) of silver and 0.4 percent zinc. Inferred resources add 1.5 million tons of 8.1 percent copper, 6.4 grams of gold, 34 grams of silver and 0.9 percent zinc.

Each of the machines, a bulk cutter, an auxiliary cutter and a collection machine, weighs around 250 tons. All three will operate at depths of around 1,500 meters (4,900 feet) in temperatures of 2.6 degrees Celsius. The machines are designed to break rock with much greater force than land machines and must operate at low temperatures to avoid overheating.

The Collecting machine

The auxiliary cutter prepares the rugged seabed for the more powerful bulk cutter. These two tools gather the excavated material; the third, the collecting machine, will collect the cut material by drawing it in as seawater slurry with internal pumps and pushing it through a flexible pipe to the subsea pump and on to the support vessel above via the riser and lifting system.

The machines will be remotely controlled from a purpose-built vessel. The vessel is being built by China’s Fujian Mawei Shipbuilding and will measure 227 meters (750 feet) in length and 40 meters (130 feet) in width and will have accommodation for up to 180 people. It will generate approximately 31MW of power. 

Completing the trials in PNG allowed Nautilus to work closely with its partner Petromin, government officials and community leaders from coastal villages geographically closest to the Solwara 1 site the opportunity to witness the equipment in action.

The equipment is now being prepared for shipment to China where it will be integrated onto the support vessel [when and if it is ever completed].

Earlier this month, the Government of Papua New Guinea granted a two year exploration license to Nautilus. Work done in the area by the company has identified numerous exploration targets with similar geology to the deposits found at Solwara 1. 

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Filed under Mine construction, Papua New Guinea

Court reinstates case of Tolukuma mine spill

Christopher Yowat | The National aka The Loggers Times | February 13, 2018

THE Supreme Court has reinstated a case filed against the Tolukuma Gold Mine Limited over the alleged spillage of sodium cyanide into rivers in Golilala district, Central, 18 years ago.

The case was filed by James Gabe and others in 2006. it claims that more than K1 million in damages from the mining company was dismissed by the National Court in April, 2014. Gabe then applied to the Supreme Court to review the decision by Justice Sir Bernard Sakora.

The three-man Supreme Court bench of judges David Cannings, Ere Kariko and Jeffery Shepherd, granted the orders sought by Gabe – that the dismissal of the case by the National Court on April 9, 2014, be quashed and that the matter be reinstated.

Justice Sir Bernard had dismissed the proceedings after he had been satisfied that Gabe and the other plaintiffs were guilty of an inordinate delay in prosecuting the case and that there had been no proper explanation for it.

Gabe argued that the decision to dismiss the case was made on an “erroneous factual basis”.

Justice Cannings, on behalf of the Supreme Court panel, said:

“We consider, with respect, that if his honour had closely analysed the events that took place in the six-month period between the failed mediation (in April 2013) and the filing of the respondent’s motion for dismissal (in October 2013), his honour would have formed a different view as to the satisfactoriness of the applicant’s explanation for the delay.”

See also: Disgraced judge Bernard Sakora resigns in latest move to avoid justice

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Moratorium on Panguna stays

Bougainville President John Momis

PNG Industry News |  12 February 2018

IT seems that nothing will happen at the Panguna copper-gold mine until after the referendum on independence is held for the island upon which it is situated in Papua New Guinea – Bougainville.

The doors to Bougainville Copper Mines (BCL) and RTG Mining – both anxious to redevelop the mine which has been closed since 1989 – have now been firmly shut by President John Momis.

Momis has told media that the mine would remain closed until after the vote, which is expected to take place on June 15, 2019.

This follows up on a statement issued by Vice President Raymond Masono, who is also Mines Minister, in which he said that the Autonomous Bougainville Government (ABG) had completed the legal process under the Bougainville Mining Act 2015 in relation to BCL’s application to renew its exploration licence over the Panguna mine area “and conclude that it is untenable under current circumstances for the Panguna project to proceed, resulting in a decision not to grant an extension to BCL’s exploration licence.

“Effectively BCL does not have any more tenement (sic) in Bougainville or any legal right over Panguna mineral resources and the legal ownership of the Panguna resources reverts back to the customary landowners of Panguna and the ABG.

“In making that decision to not grant an extension of terms to BCL’s tenement, the ABG has also made a decision to impose a mining reservation (moratorium) over the Panguna mine area for an indefinite period,” Masono said.

Masono added that the public was invited to comment on the Panguna moratorium and this should be submitted to the Department of Mineral and Energy Resources by close of business on March 26, 2018.

“It is in Bougainville’s best interest that the Panguna resources owners be left alone and be dealt with by the ABG alone regarding any future plans for the Panguna project moving forward when the circumstances are conducive and the moratorium is lifted.

“For BCL or RTG or any other investor to directly deal with the landowners regarding the development of the Panguna project will only result in more division and problems among the people and may affect ABG’s drive for peace and unity leading towards the referendum.

“The ABG will not accept nor be influenced by any speculations regarding its decision on the moratorium and redevelopment  of the Panguna project,” Masono concluded.

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O’Neill caught out telling lies over Ok Tedi Mine

Bryan Kramer MP | PNG Blogs | February 09, 2018 

Prime Minister Peter O’Neill was caught lying and misleading Parliament during question time when it resumed its first session in 2018 on Tuesday.

O’Neill was responding to a question raised by the Governor of Western Province, Toboi Yoto asking when his people would benefit from Oktedi Mine and when they would receive the share certificates.

Western Governor explained that since the O’Neill Government took over the mine in September 2013 it had failed to transfer the share certificates representing 33% interest in the mine to the Western Province people. Further, still, they had yet to receive their dividends.

In response, O’Neill claimed when his Government took over the mine from BHP, who at the time wanted to shut down the mine for not being profitable. He said the Government inherited a loss-making machine.

He confirmed his Government has yet to transfer 33% interest to the landowners, claiming it was because of stamp duties issue.

Member for Moresby North-West Sir Mekere Mortaua interjected with a point of order. Mekere a former PNG Sustainable Chairman told O’Neill to stop his incurable lies [about the mine]. There was never any plans to shut down the mine it was not making any loss but investing in further explorations, Sir Mereke said.

O’Neil responded telling Mekere that he was only trying to protect his legacy of providing immunity (protection) to BHP, the mines former developer who destroyed the lives and livelihood of the people through environmental damage.

“It was loss-making machine when we took it over but we had to restructure the mine during the drought and paid off all the employees making a profit,” he said (source post courier article – https://postcourier.com.pg/ok-tedi-issue-heats/)

It was at this point I then interjected asking the Speaker to advise the Prime Minister to stop lying and misleading parliament. As I had in front of me 2012 OkTedi Financial Report confirming the mine was, in fact, making a profit.

O’Neill responded I was a busybody from Madang on social media.

So was O’Neill lying when he claimed the Oktedi Mine was a loss-making machine before he took over it?

O’Neill took over the mine in 2013, so let’s review the mine’s profits four years before and four years after from when he took over it.

  • In 2009 net profit K1.5 Billion
  • In 2010 net profit 2.03 Billion
  • In 2011 net profit K1.2 Billion
  • In 2012 net profit of K913 million
  • In 2013 net profit of K181 million
  • In 2014 net profit of K360 million
  • In 2015 net loss of -K347 million
  • In 2016 net profit of K384 million

This confirms O’Neill was lying and misleading parliament.

What O’Neill failed to disclose that soon after taking over the mine companies he held a direct and indirect interest in where awarded substantial contracts to service the mine.

So perhaps he was referring to his own companies being a loss making machines until he took over the Mine and thereafter they started turning over million Kina profits.

It is not the first time O’Neill has unashamedly lied both on the floor of Parliament and in the public arena.

In the height of 2017 General Elections O’Neill made an announcement while on the campaign trail in Tari that his Government had made the decision to transfer the 4.27% Kroton shares to the PNG LNG landowners.

“Today I am announcing that the national government will transfer 25 per cent of Kroton shares, which is 4.2 percent indirect interest in the PNG LNG project,” he said.

“The shares to be transferred to landowners and provincial governments in Hela, Southern Highlands, Gulf, Western and Central province are valued at K3.5 billion,

“Our Government is providing 25 per cent of Kroton shares to landowners and beneficiary groups that should rightfully be receiving benefits from the PNG LNG project.

“These shares will enable the landowners and communities and the provinces to secure a better future and to be more self-sufficient.

“This Government has made it our business to correct bad decisions from the past, particularly when this relates to land ownership.

“I was not a signatory to the initial Umbrella Benefits Sharing Agreement in 2009, but I have made sure that our government does the right thing by our people today.

“This in the same spirit as the transfer of 17.4 percent of BCL shares to the landowners and people of Bougainville by the national government.”

“It is the same as the transfer of 33 per cent ownership in Ok Tedi” O’Neill said. (source https://www.thenational.com.pg/clans-promised-shares/)

So did O’Neill transfer the 4.27% of Kroton shares in the PNG LNG Project to the landowners? Did he transfer the 33 per cent ownership in the Oktedi mine to Western landowners?

The answer is NO.

Such statements maybe construed as undue influence (criminal offence under Section 102) When a person makes a false statement to induce a voter to vote in a particular way knowing the statement to be false.

This explains why O’Neill is commonly referred to as a Pathological Liar – defined as habitual or compulsive lying.

It is certainly embarrassing knowing such a person occupies the office of Prime Minister where his shrewd conduct and poor character reflects on our Nation of 8 million people.

Following the formation of the Government in August 2017 I asked members of the Opposition who previously served under O’Neill why they abandoned his Government – they responded because he was forever lying, making commitments or promises he would never honor. “We got tired of his lies and left” they said.

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