Category Archives: Papua New Guinea

Group wants deep-sea mine permit, licence cancelled

The National aka The Loggers Times | March 16, 2020

A GROUP of people concerned about the implications of deep-sea mining wants the Government to cancel the environment permit and mining licence granted to Nautilus Minerals Niugini Ltd.

The group is led by Jonathan Mesulam of the Alliance of Solwara Warriors, Peter Bosip, the director for the Centre of Environmental Law and Community Rights, Marie Mondu, the development secretary of the Catholic Bishop’s Conference of PNG and the Solomon Islands, and Cardinal Sir John Ribat, the Archbishop of Port Moresby, in association with the Catholic Bishops’ Conference, Coffee Industry support project, Caritas and the Social Communication of CBC PNGSI.

Mesulam said there was a lot of debate and opposition to the project since 2011 and with the project being declared “a failed project” the goal was achieved and asked the Government to go further and cancel its mining and exploration licence.

“The Solwara 1 Project has been declared a failed project in a public statement by the managing director of Mineral Resources Authority Jerry Garry in The National of Jan 24, 2020,” he said.

“The mining licence was given in 2011 and there is no mining, why is the company still holding onto the licence?

“The Government has to cancel the licence before the end of this year,” Mesulam said.

“As stewards of the sea and future, we are now giving notice to the responsible ministers to cancel the seabed mining licence ML154.”

Bosip said the deep-sea mining in PNG was the first of its kind in the world and “we do not know the negative impacts of it”.

“We do not know the best method of mitigating its negative impacts that will arise, we are not prepared to face the negative impact of deep-sea mining.”

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Wafi-Golpu Negotiations Have Not Recommenced – Newcrest

Matthew Vari| Post Courier | March 16, 2020

NEGOTIATIONS into Morobe’s Wafi-Golpu project is still pending according to project joint venture partner Newcrest Mining Limited.

Newcrest Mining PNG country manager Mr Stanley Komunt said this in response this paper queries in relation to comments made by Mining Minister Johnson Tuke last month on government’s intention to resumes negotiation following the dismissal of the memorandum of understanding in court case relating to the project.

Mr Komunt said the main reason for uncertainty was the relays [sic] in the proposed revised mining act, which is still yet to be passed by government and  how concerns raised may be factored into the amended act.

“We from the JV’s point of view have not made a commitment as yet to progress any discussions.

“There is a couple of reasons why and number one is more to do with the current discussions on the revised mining bill.

“We really don’t know where that is going to end. Whilst the Prime Minister has given us, the industry and SNT (State Negotiating Team) team to go and back and since our meeting in January 17 in Brisbane.

“He has given us two months and we have been meeting last month now and we are slowly getting there but there is still some major, not so much disagreement, but misalignment I would say,” Mr Komunt pointed out.

Komunt pointed out other particulars also in the air such as benefit sharing, royalty and contracts have all been relayed to the minister responsible for mining.

“Whilst we appreciate, the company, not only us but the industry appreciates that country needs to get a better share and we want to make sure that is realized through the negotiations that we will have.

“We are not quite there yet to start the negotiations for Wafi. We have relayed that to the minister.

“Because if the revised mining act changes it will have an impact on the project economics and how we have done our planning and that is a major concern and we can’t do anything.

Prime Minister Marape has indicated his government is set on delivering the project, a point Komunt added the PM is well aware and supportive of an understanding going forward.

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PNG transfers remaining BCL shares

Carmella Gware | Loop PNG | March 13, 2020

The PNG Government has fully transferred its entire 36.4 percent share in the Bougainville Copper Ltd to the Autonomous Bougainville Government.

This was one of the resolutions reached during the first, and possibly the final, post-referendum Joint Supervisory Body meeting held on Thursday, the 12th of March, at Port Moresby’s APEC Haus.

It was the first Joint Supervisory Body, or JSB, meeting to be held since the referendum last year. It is also the last JSB as its name has been changed to Joint Consultative Body, and this body will continue to provide oversight to the post referendum consultation processes.

During the JSB, teams from the PNG and Autonomous Bougainville governments, including President John Momis and Prime Minister James Marape, sat together to decide a future for Bougainville.

The sixth out of the 13 agendas discussed and passed included the transfer of Bougainville Copper Ltd shares.

The JSB noted that in 2017, the National Executive Council made a decision for the National Government to transfer 17.4 percent from its 36.4 percent shares to the landowners of Panguna. Following that, on the 13th of December, 2019, at the joint announcement of the Bougainville Referendum results, Prime Minister Marape further announced that the National Government will transfer to ABG its remaining 19 percent of the BCL shares.

“This JSB affirmed that the entire shares of Bougainville Copper be passed to Bougainville Mining Ltd – the Bougainville Government and Bougainville people’s subsidiary company,” the PM, flanked by the ABG President and members of their technical teams, told media after a full day of meeting.

Rio Tinto and the ABG both own 36.4 percent each while public shareholders hold the remaining portion of the share capital.

Apart from BCL shares, the PNG Government has made it clear that the constitutional Restoration and Development Grant (RDG) will be given to support the budget on Bougainville while the National Planning Ministry has been directed to clearly define the K100 million commitment and report back in the next Joint Consultative Body meeting this year.

The JSB has also acknowledged and accepted the democratic choice of the Bougainville people for Independence.

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Alluvial Sector Revenue at K550m in 2019

Patrick Tom | Post Courier |  March 9, 2020

The country’s alluvial sector production and revenue has climbed to K550 million in 2019, an increase of K140 million from what it earned in 2018.

Mineral Resource Authority regulatory operations manager Roger Gunson revealed during the launching of the Reducing Mercury in PNG ASGM sector last Friday that last year the country’s alluvial sector generates revenue of K550 million, and produced 120,000 OZ (ounces) of gold.

When put that in perspective that’s similar to a medium size mine like Simbari mine in New Ireland.

Mr Gunson said gold represents 70 per cent of mineral revenue, adding that current the gold price as of last Friday was at almost US$1670 an ounce filtering with historic highs.

“The high gold price is beneficial for PNG and the alluvial sector,” he said.

“For every US$100 increase in the gold price, our mineral revenue increases by over K650 million,” said Mr Gunson.

He said that provides some perspective on the significance of gold to our economy.

“From the grassroots miners working the rivers and streams boost their rural household income, through to the national government collecting taxes.”

“The sector is one of the largest small and medium enterprise directly benefits those communities that involve in alluvial gold mining,” said Mr Gunson.

He also pointed out that PNG alluvial sector has a significant component of the overall mining industry of Papua New Guinea.

It has been operating since 1881.

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MRA embarks to reduce mercury usage

alluvial miners at work

Alluvial miners at work on Bougainville

Cedric Patjole | Loop PNG | March 8, 2020

The Mineral Resources Authority (MRA) recently launched a project to reduce the use of mercury in small scale mining operations.

The Project aims to identify the extent to which mercury is used in the industry and how it is used and by whom, in a bid to mitigate health risks.

On March 6th, the ‘Reducing Mercury Use in Papua New Guinea’s Alluvial and Small-Scale Gold Mining Sector’ Project was launched in Port Moresby, following a workshop with key stakeholders and project partners.

The Alluvial Mining industry is one of the largest small to medium enterprise sectors in PNG that engages thousands of rural small scale miners.

It is also a sector that is great health risks due to the usage of mercury.

“This project is designed to get a better understanding of our alluvial sector general, and more specifically to identify the extent to which mercury is used how it is used and by whom,” said MRA Executive Manager of Regulatory Operations, Roger Gunson.

“In addition, it will track the supply trial and identify the regions where it is used. The data collected relating to the sector will be entered into a database administered as part of MRA’s land-folio tenement system.

“This will be able to better inform on policy development, resourcing, training and sector needs.”

Gunson, said the Alluvial Mining is one of the biggest revenue earners for the country with K550 million recorded in 2019.

He said this is similar to revenue generated by smaller mines such as Simberi Mine. However, the use of mercury in extracting gold poses major health risks to the miners.

“Unfortunately, in many parts of PNG gold is extracted through the use of mercury. This is a danger to the health of miners, their families and communities as well as we have heard from the workshop today.

“Hence, we have a paradox, we want the gold and we want to be able to seek it, but we also have a health risk that sits alongside it,” said Gunson.

The project is funded by the US Department of State and implemented by Artisanal Gold Council (AGC) in conjunction with the MRA.

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Mining in Ok Tedi will end around 2027: Exec

Peter Esila | The National aka The Loggers Times | March 2, 2020

OK Tedi Mining Ltd in Western invests about US$20 million (K66.46 million) annually in drilling for reserves, chief executive and managing director Peter Graham says.

Graham said current exploration was focused near the Mt Fubilan mine and within existing special mining lease (SML).

“The most prospective targets indicate underground rather than open pit mining,” he said.

Graham said the life of the mine, based on current reserves and mining rate, would end around 2027.

“The mine is limited by an agreement with communities on the amount of waste material mined and placed in waste dumps,” he said.

“Without this limitation, mine life would be longer.

“Efforts are therefore being focused on potential stable waste dumps, in-pit waste disposal and a potential tailings storage facility.”

Meanwhile, OTML is a major producer of copper concentrate for the world smelting and refinery market in Germany, India, Japan, South Korea and the Philippines.

The mine exports copper as a concentrate which contains gold and silver.

From start of operations in 1984 to end of 2018, Ok Tedi has produced 4.83 million metric tonnes of copper, 14.8 million ounces of gold and 32.7 million ounces of silver.

In addition to the SML, OTML holds a portfolio of several exploration leases (ELs), other leases for mining purposes (LMPs) under the PNG Land Act.

Apart from its direct monetary contribution, OTML is also involved in Western’s development through tax credit scheme and other infrastructure projects such as health centres, school classrooms, houses, roads, airstrips, jetties, water supply and communication systems for the villages.

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Sinivit mine clean up to cost taxpayers K10m

Clean up to cost K10mil

IT may cost up to K10 million to detoxify and clean up cyanide at the abandoned Sinivit mine in East New Britain (ENB), an official says.

Mineral Resources Authority (MRA) managing director Jerry Garry said the Conservation and Environment Protection Authority (Cepa) and MRA officials visited the site last year and had completed monitoring by sampling to test for elevated cyanide content in the soil and water sources.

“There are interim plans to have security guards on site,” he said.

“Cepa advised that it may cost up to K10 million for external experts to detoxicate and clean up the cyanide.”

Last week, ENB Governor Nakikus Konga told Parliament that there were 18 vets, (an outdated way of storing mine wastes at the abandoned mine), which could be disastrous for the people, especially during the flash flood the province was experiencing.

Konga’s concerns were on the effect the mine wastes would have on his 45,000 people along the Warangoi River catchment area.

He said he had been discussing with Mining Minister Johnson Tuke for the last six months regarding the mine.

“He came to my province last weekend to see for himself what is happening with the abandoned Sinivit Gold mine, it will cause a catastrophe to my province.”

Meanwhile, Environment, Conservation and Climate Change Minister Wera Mori said he would be visiting the abandoned mine to assess the wastes.

“I will basically make a visitation to that province, hopefully together with MRA,” he said.

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