Category Archives: Papua New Guinea

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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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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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.

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Pathway to remedy human rights abuses at Porgera mine identified

A new report commissioned by Barrick Gold has been published on the serious human rights situation at the Porgera mine.

Download In Search of Justice Porgera Gold Mine (6mb)

The report, by California based nonprofit BSR, reveals there is a backlog of more than 940 human rights cases registered, plus other victims who have not yet made their claims known.

The report recommends Barrick needs to make a number of immediate fixes, address longer-term issues, and take preventative action to avoid future harms.

BSR believes that addressing claims at these three levels is the only way to ensure a robust and sustainable approach to remedy.

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Resource Agreements Unfair: Haiveta

Mayur Resources managing director Paul Mulder signing an agreement in 2017 with Gulf Provincial Governor Chris Havieta 

Post Courier | September 18, 2018

GULF Governor Chris Haiveta has told his people that current agreements for oil, gas and forestry were not negotiated in their favour.

Delivering his independence message in Kerema last weekend, Mr Haiveta said he wants all agreements under the UBSA and LBSA re-visited and re-negotiated.

He said he felt his people – the majority resource owners – had been short changed and robbed of their resources.

Mr Haiveta and his people hosted Governor General Sir Bob Dadae over the Independence long weekend.

He said: “Our province recognises that current resource agreements in oil and gas and forestry have not been negotiated in the province’s favour.

“This has meant that essential and strategic infrastructure like ports, towns and roads in the project areas have not been built, leaving the province, Kikori district where the projects are located, particularly to miss out completely.

“Therefore we are moving in this term of parliament to ensure that all these agreements are revisited and they are legally compliable and enforceable by all parties.

“We have resolved the UBSA and LBSA agreements including the Gulf landowners and Provincial Governments benefits from the existing Oil and LNG Pipeline to Caution Bay be re-negotiated.”

He said that for the future, ‘we will ensure that resources agreements are properly negotiated and drafted to include all necessary and possible infrastructure needs for the project areas, including the upcoming LNG, coal mining, limestone, mineral sand mining and timber harvesting’.

Mr Haiveta said: “We are glad the national government has started the process of devolution of powers from Waigani to provinces, and Gulf Province is poised to receive decentralisation of powers soon.

“As a step forward to this, we will be signing the Service Delivery Partnership Agreements soon which will pave the way for a synchronised delivery of services between the two open electorates and the provincial government.”

He said his people have abundant renewable and non renewable natural resources both on the land and in the seas.

“Our sea boundaries encompass an area that is twice our land mass, we have significant marine resources with reef systems such as Pocklington and Eastern Fields that remain unexplored commercially and for tourism.

“We also have the largest prawn fishery in the country which is exploited directly from Port Moresby.

“Our forestry industry composed from Port round logging exports brings little benefit to the province as it is a nationally controlled activity.”

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Work on K3.9mil Tolukuma road delayed

The National aka The Loggers Times | September 13, 2018

WORK on the Tolukuma-Bakoiudu Road has been delayed because funds allocated for the project cannot be accessed, according to the Mineral Resources Authority.

“The K3.9 million earmarked for the 11.2km road is under the care of the Department of Finance as a result of the implementation of the Public Money Management and Regularisation Act 2017,” a statement from the authority said.

It was responding to a query from the Tolukuma Landowner Association on why the road construction had not started despite the funds having been allocated.

The contract for the road project was awarded by the Central Supplies and Tenders Board last November. The MRA then paid the contractor a mobilisation fee of K170,000 in December to start work in February this year.

It also paid K200,000 to the Department of Works to supervise the project.

Before more payments were made, the legislation came into force in April.

Funds were frozen by the Department of Finance.

“The implementation of the Public Money Management and Regularisation Act has affected not only this project but many other projects, even those funded by donor agencies such as the World Bank,” the statement said.

The authority said it had on several occasions requested the Department of Finance to allow it to access the funds but to date had not received any response.

Takeso Uson, the executive officer of the Tolukuma Landowner Association, said the tendering process was completed and K-Mele Construction had moved its machines to the project site.

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RTG-led consortium meets Bougainville Gov’t over Panguna project

Australian Mining | September 12, 2018

ASX-listed RTG Mining has presented its redevelopment proposal for the Panguna mine to the House of Representatives in Bougainville in a significant step forward for the project.

RTG Mining is leading a consortium of local landowners in Bougainville, an autonomous region of Papua New Guinea (PNG), that is trying to win government support in order to restart operations at the mine, currently under consideration for redevelopment by Government-backed Bougainville Copper (BCL).

The mine’s relaunch is a keystone of Bougainville’s upcoming plans for independence.

The dormant Panguna copper mine, which has been abandoned since 1989 due to local conflicts, contributed roughly 40 per cent of PNG’s economy during the height of operation.

The consortium, led by landowners, presented its proposal last week to a number of representatives of the Bougainville Government and is currently developing a social licence to win further support.

This includes donations for the local Arawa hospital, school and education support, support for the Women’s Federation in Bougainville and sport sponsorship opportunities, including the local rugby sevens team, the Black Orchids.

“This gesture of support by RTG is significant towards our efforts to compliment our ABG Government including all stakeholders on Bougainville working towards a united and peaceful Bougainville,” said Peter Tsiamalili, Autonomous Bougainville Rugby president.

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