Category Archives: Papua New Guinea

Landowners shutdown Lihir airport

Gregory Moses | NBC News via PNGFacts | 29 May 2017

Landowners on Lihir, have threaten to shut down the Londolovit Airport today, over outstanding compensation demand of about K3bn, for more than 20 years.

Nimarmar Local Level Government Council Media Officer Tony Sapan, says the closure will affect the Lihir Mine’s Fly In Fly Out services, medicinal supply to the island, businesses, banks and emergencies if they occur during the closure.

“Ol papa giraun ting olsem company has used it long enough and they need to be compensated for it.

“Imas igat compensation agreement. The company has forgone meetings ol ibin plenim long toktok long dispela compensation.

“Na nau, failure blo ol ibai affectim mine, na the whole Lihir community.

“Ol (landowners) ibai planim gorgor long airport tomorrow.”(Monday 29.05)

Mr Sapan also says the landowners have set the April 15 as the deadline to talk about their compensation demand with the company, but this has lapsed and they now have opted to shut down the airport for an indefinite period.

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Chemicals In River Affect Villagers

Michael Arnold | Post Courier | May 26, 2017

Medical teams have found trace amounts of cyanide in the blood of people living in the Mekeo villages of Veifa’a and Aipeana along the banks of the Angabanga River in Central Province.

According to councillor of Veifa’a ward two, Ben Afaisa, medical teams from Port Moresby had done an awareness on the effects, if any of the upstream Tolokuma Gold Mine in Veifa’a and other villages along the river, and had been approached by villagers who became sick after washing in the river.

Upon a return trip to the villages, doctors discovered that villagers had traces of cyanide in their blood which could have been absorbed through the skin or through consumption of plants and animals that also inhabit the area.

“We were tested by doctors from Port Moresby, and they found out that in our bodies we have cyanide and other harmful chemicals,” Cr Afaisa said.

Efforts to approach the Central governor with their concerns have been unsuccessful, and villagers are hoping that the new government will be able to address the issue.

“We haven’t heard anything from the governor about how they plan to address the issue. That river feeds all the west Mekeo villages along its banks, up till Bereina which is at the mouth of the river,” Cr Afaisa said.

The Angabanga River connects many other villages in the Mekeo LLG to Goilala where Tolokuma Gold Mine is also located.

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CEO explains experimental undersea mining

In the article below Nautilus’ CEO paints a rosy picture that is very much at odds with the REAL STORY in its financial filings. Follow the links to read the true picture: 

Nautilus admits serious questions over Solwara 1 viability and future

Nautilus admits environmental impacts of experimental seabed mining unknown

The National aka The Loggers Times | May 25, 2017

THE first undersea mining in the country will take place in New Ireland and operated by Nautilus Minerals. Chief executive officer MIKE JOHNSTON explained to The National’s Business Editor SHIRLEY MAULUDU the nature of the project. He also discussed environmental aspects of the project.

MAULUDU: Tell us briefly about the company Nautilus Minerals.
JOHNSTON: Nautilus is listed on the Toronto Stock Exchange and is the first public company to explore the deep ocean floor the world’s future mineral resources. Nautilus was granted the world’s first exploration licence for deep sea mineral resources in 1997. Our first mining lease and environment permit were granted in 2009 and 2010 respectively.
MAULUDU: Tell us about the Solwara 1 project in New Ireland.
JOHNSTON: The Solwara 1 project is located in the Bismarck Sea, Papua New Guinea, 30 kms from the coast of New Ireland and 1600 meters below the surface. The project uses technologies from the offshore oil and gas industry, and terrestrial underground mining to produce high grade copper and gold. The planned extractions area is very small at 0.1 km2.  Additional benefits include that no tailings are produced, no landowners are required to be moved, and there is no impact from mining above 1300m water depth. The project is being developed in partnership with the PNG Government. It is fully permitted and has strong local and national support.
MAULUDU: Which communities, wards or the district in New Ireland will be directly impacted by the project?
JOHNSTON: As Solwara 1 is located at 1,600m water depth in the ocean, 30km from land, no one is directly impacted by the project. There is also no requirement to clear land, and no impact on tuna or coastal fisheries. An area known as the “Coastal Area of Benefit” (CAB) has been established by the provincial and national governments, where communication and community benefit programmes are focussed. The CAB comprises seven wards on the west coast of New Ireland. Only last week, Nautilus, in partnership with the NIPG, and with the assistance of Abt Associates and the New Ireland Provincial Health Authority, completed a health patrol and data collection programme (began in Oct 2016). The team estimated during this programme that they saw 7000-plus patients, out of a population of around 8500. These programmes will be ongoing.
MAULUDU: What sort of tools will be used to carry out the mining?
JOHNSTON: The production system uses existing technology from the offshore oil and gas sector, combined with rock cutting and materials handling technologies used in land-based operations.
The three main components of the Seafloor Production System are:
l Seafloor Production Tools comprising auxiliary cutter, bulk cutter and collecting machine;
l riser and Lifting System; and,
l Production Support Vessel.
The mining tools cut the rock material, which is then transferred to the Production Support Vessel as a “sloppy slurry” via a very large pump and steel pipe (riser) system.  On board the vessel the high grade rock is separated from the water by gravity methods. The resulting rock is stored in the ship’s hull, to be later transfer to a bulk cargo vessel, then shipped directly to China.
MAULUDU: How will the minerals be mined from under the sea?
JOHNSTON: Rock is cut on the seafloor by the AC and the BC, and then pumped to an adjacent stockpile area. The third machine, CM, then collects the cut material, sucking it up and transferring it as seawater slurry to the main pump, situated at the bottom of the steel riser system. The riser system comprises a rigid steel riser pipe supported from the vessel which delivers the slurry to the surface. The large subsea pump is situated at the bottom of the riser pump, just off the sea floor.  The entire riser and pump system is suspended directly beneath the support vessel. On the deck of the Production Support Vessel, the slurry is dewatered using gravity. The solid material is stored temporarily in the PSV’s hull, and then discharged to a transportation vessel moored alongside. Filtered seawater is pumped back to the seafloor through the riser pipes and provides hydraulic power to operate the RALS pump. Discharge of the return water at the seafloor from where it came eliminates mixing of the water column, and minimises the environmental impact of the operation.
MAULUDU: What minerals in particular will Nautilus be mining for?
JOHNSTON: Copper and gold.
MAULUDU: Environmental issues have been raised by individuals, groups, regarding the Solwara 1 project. How will Nautilus avoid causing any impact on the environment within which it will operate?
JOHNSTON: There are many significant environmental benefits to mining in the deep sea. And our systems try to use these benefits as much as possible. These include effectively no mine tailings, minimal pre-stripping of sediment, low fresh water needs, no vegetation stripping or fresh water catchment issues, minimal rehabilitation costs with no permanent on-site infrastructure such as roads, power lines, buildings and so on. At Solwara 1 we were able for example to design our riser system as a fully enclosed pump and pipe system to extract the mineralised material from the seafloor. There is no mixing of the water column and there is no impact from mining shallower than 1300m water depth at Solwara 1 (more than 1000 meters below where most tuna, whales etc live)
MAULUDU: How is Nautilus doing with its awareness programme in educating the impact communities on the nature of the project?
JOHNSTON: Nautilus has always and continues to ensure that the communities located closest to its Solwara 1 Project (and the wider community in PNG) are fully informed about the Solwara 1 Project. During the development of the Solwara 1 Environmental Impact Statement (EIS), we visited a number of villages and towns in PNG to ensure the views and concerns of local communities were heard. The specific villages and towns were determined in consultation with PNG national and provincial governments. Our commitment to the community does not end with the completion of the EIS or granting of the Environment Permit. Community engagements have continued to take place since the Environment Permit was granted by the then Department of Environment and Conservation (DEC) in December 2009. Representatives from the national and provincial governments accompany Nautilus Minerals during these community engagement campaigns. To date, Nautilus Minerals has recorded the attendance of around 30,000 people at engagements/awareness campaigns held in 46 locations within PNG. Both numbers are still growing. We plan to continue with our community engagement campaigns in New Ireland and East New Britain as we move into the operations phase of the project. We have and will continue to focus our engagement programme on the villages located nearest to the Solwara 1 Project site, the CAB. This area covers the communities who have the greatest interest in understanding the project and this will be where many of our CSR programs will be implemented.
MAULUDU: Give an update on the progress of the Solwara 1 project.
JOHNSTON: Nautilus has taken delivery of the Seafloor Production Tools (SPTs). They are currently undergoing submerged trials in PNG. The Riser and Ancillary equipment is completed and currently in storage. The Subsea Slurry and Lift Pump is completed and Nautilus will take delivery of it later this year. The Production Support Vessel is currently being built in China and is progressing to schedule.

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New Ireland refuses to sign Simberi MOA approved by NEC

State Solicitor’s office accused of dishonesty 

Sharon Lowa | Post Courier | May 22, 2017

The New Ireland provincial government has refused to sign the Simberi Gold Mine memorandum of agreement recently approved by the National Executive Council (NEC) in April.

Deputy governor and chairman for natural resources in the provincial executive council Ambrose Silul said they are sick and tired of being misled by the state team negotiating the new MoA for both Simberi and Lihir Gold Mines.

Mr Silul insists that the state keep its word, and until it does, the New Ireland government will not sign any new MoA.

The New Ireland team had been renegotiating the Simberi MoA for over four years and a provisional MoA had been agreed in 2013, but that it was conditional on approval by the PEC.

“Our team wrote to the state team and Mineral Resources Authority (MRA) on October 6, 2013 that the draft MoA must include the provisions approved by the New Ireland PEC on May 21, 2013.

“That includes increasing the rate of royalties from two percent (FOB) annual revenues to 10 percent, as well as similar increases in the special support grant and tax credit scheme,” Mr Silul said.

Mr Silul further stated that the state solicitor’s office agreed that the changes the New Ireland government wanted made to the MoA would be included in the draft to go to the NEC.

He said that in a meeting in April 2015 in Kavieng, the state solicitor agreed they would include New Ireland’s provisions in both the Lihir and Simberi MoAs and allow the NEC to make a final decision.

“All we are asking is that NEC – and not the state bureaucrats – decide on the merits of our suggestions. Instead, we have a bunch of bureaucrats making decisions that should be made by NEC.”

“We will not accept this dishonesty on the part of the state team,” Mr Silul said.

Mr Silul is calling on the mining minister to conduct an immediate investigation into this affair.

The MRA mining coordinators and the state solicitor’s office deliberately and willfully misled the NEC by submitting an MoA that did not include the provisions they promised would be included.

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Call to implement advice in EITI report

The National aka The Loggers Times | May 22, 2017

GOVERNMENT agencies responsible for the mineral and petroleum sectors have been urged to implement a Cabinet decision to implement the recommendations in the first PNG Extractive Industries Transparency Initiative Report.
The call came from the EITI secretariat following Cabinet’s directive last week that the recommendations based on the 2013 fiscal year be implemented.
The agencies include the Department of Petroleum and Energy, Mineral Resource Development Company, the three Kumul enterprises, Auditor-General, State Solicitor, Mineral Resource Authority and the departments of Finance and Treasury.
Head of Secretariat Lucas Alkan said the onus was now on the State agencies to act.
“It is important that we take action on the report recommendations now to validate the EITI candidate status early next year.
“It is only through these efforts that we will be seen as making meaningful progress to meeting global best practice in managing our resource wealth.
“And PNG can be accredited as an EITI member country by EITI International.”
The Petroleum and Energy minister is required “to immediately implement a reliable electronic registry to supersede the current paper ledger system”.
The minister responsible for the Kumul Consolidated Holdings Limited is to ensure it participates in the EITI process and regularly reports to the EITI process the State’s share/ interest in the mining and petroleum sectors it manages under the General Business Trust.
Alkan said similar directions were given to Finance Minister and Treasurer to make sure information on fiscal and finance data were conveniently available to help in the EITI reporting process.

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BRA unites as Bougainville waits for referendum

Bougainville Revolutionary Army fighters look down on the Panguna mine in 1996

The National aka The Loggers Times | May 19, 2017
FACTIONS of the Bougainville Revolutionary Army have signed an agreement to work together as the province looks ahead to the 2019 referendum.
Hundreds of people yesterday witnessed a reconciliation event at the Arawa Independence Oval in Buka.
The BRA factions signed a memorandum of joint commitment to work together toward the Bougainville referendum.
On Monday, a reconciliation ceremony was also held at the Roreinang United Church Mission ground. It was where the A company broke away from the rest of the army to form Me’ekamui in 1997.
On Tuesday, there was another reconciliation ceremony held in Panguna. The events were witnessed by officials from the Department of Foreign Affairs and Trade, the Autonomous Bougainville Government and the people of Bougainville.
ABG Minister for the Department of Peace Agreement and Implementation Albert Punghau said the unification of the BRA factions was vital for the region if it wanted to achieve the referendum.
Former BRA Chief of Defence Ishmael Toroama said it was a day to be united and to remember “loved ones we lost”.
“This is the day when the Government declared the state of emergency.
“Today we stand and remember our loved ones during the civil war in Bougainville.
“We remember that we fought to take care of our people and our resources,” Toroama said.

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Local firm gets mining licence

The National aka The Loggers Times | May 18, 2017

A LANDOWNER company in Enga has been granted seven alluvial mining licence leases by the Mineral Resources Authority.
It allows the Koekam PM Holdings Ltd in the Kompiam-Ambum district to engage exploration companies on their tribal land.
Company chairman Peter Malix, while thanking the MRA for granting the licence, said it had taken a long time and resources to finally receive the mining licence.
He thanked Mining Minister Byron Chan, the Mineral Resources Authority and those who had done a lot so that the landowner company “can have a say in the development of resources in our own land”.
The licence will allow investment in development of the mineral-rich Koekam area where alluvial mining activities are on a small scale.
“Now we have the five-year mining leases,” Malix said.
“I appeal to people from the five council wards to work together so that we can get maximum benefit from the mining development,”
The impact areas will cover Poreyalin, Aiyal, Malipin, Liu-Tip and the Kukin-Kalimb tribe from the Kompiam Local Level Government.
Alonge Alupi from Koekam said he was happy that they would now look for investors to develop the alluvial mining.

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