Tag Archives: Chinese mining

Mining Minister Tuke meets Einstein’s definition of insanity

Panguna, Porgera, Ok Tedi, Tolukuma all tell the same story – large-scale mining is a disaster for local communities and the environment.

And neither Frieda or Wafi-Golpu have yet come up with a credible plan for managing their toxic tailings – but heck, lets go ahead anyway… 

Govt adamant to get two new mines operating: Tuke

The National aka The Loggers Times | November 22, 2017

THE Government is adamant to get two new mines operating in this term of Parliament, Mining Minister Johnson Tuke, pictured, says.
Tuke, who is also the Kainantu MP said in Lae after returning from a familiarisation visit to the Hidden Valley mine and Wafi-Golpu exploration site in Bulolo, Morobe.
Tuke earlier visited the Porgera gold mine, K92 mine, Frieda River exploration site and the Ramu nickel mine.
He said under the O’Neill-Abel government’s 100-day plan, ministers holding economic portfolios were tasked to ensure their respective departments aligned their operations towards producing revenue for the Government and bail the country out from economic down turn.
“This government is doing the ground work to have at least two mines operating,” Tuke said.
“This government is fully committed.
“In this term of Parliament we will initiate something.
“The developers and landowners are also serious in having the mines off the ground.”
Tuke said the companies doing exploration at the Frieda and Wafi-Golpu sites have already submitted their proposals to dig for minerals. It was for the relevant government agencies to study their proposals and advise the National Executive Council to grant the miners special mining leases.
“Frieda has conducted exploration for the last 40 years or more,” he said.
“Last week, I was at Frieda and talked to the people there. Their response was positive.
“My visit there was to identify issues with the people and the company, so that I can better advice the Government so that it can make well informed decisions.
“That is the case with Wafi too.”

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Mining Minister pre-empts Frieda river mine approval process

The Frieda river mine has yet to go through a proper approval process, the companies involved have yet to agree how they will manage the toxic and dangerous mine tailings or how they will produce enough electricity, but the Mining Minister doesn’t care. He has given government agencies a two-year deadline to get the mine approved and construction started…

Frieda Gold Set For 2019

Post Courier | November 14, 2017

Construction phase for the Frieda mine gold project in West Sepik Province will begin in 2019.
Mining Minister Johnson Tuke Tuke said this during his ministerial visit to the mine last week. The production will start around 2030 or 2040 which the developer PanAust committed to deliver in line with the Government’s 100 days plan.
Mr Tuke said the government has been given two years to go through government agencies like, Conservation & Environment Protection Authority, Mineral Resources Authority, provincial governments and the extractive industry to get the project started.
“There is no issue but I would like both governors to continue with the positive attitude they’ve embraced and get their provincial MPs on board, because inclusive management and political will is crucial to get Frieda off the ground,” he said.
The East Sepik and Sandaun governors have agreed to work together to get this project off the ground.
“All of us have to work together and I’ve assured the people and the developer, give us two years to get all the paperwork done and then we can start on the project,” Mr Tuke said.

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Frieda river mining company in corruption investigation in China

Guangdong Rising Assets Management is under investigation for a series of bad investments including the purchase of PanAust and the Frieda river mining rights. Four people are already being prosecuted for corruption and now the former Chairman is in the spotlight over losses of more than $1 billion

Chinese probe big mine loss

Rowan Callick | The Australian | October 16, 2017

The former chairman of a Chinese state-owned enterprise has been handed over to prosecutors for investigation after the company’s investments in several Australian mining ventures lost more than $1 billion.

Li Jinming, who chaired Guangdong Rising Assets Management, which is owned by Guangdong province, was earlier expelled from the Communist Party following an investigation that began in 2014 over losses that the disciplinary inspection team described as “dreadful”.

The company was established 17 years ago with $2bn capital, the South China Morning Post reported, and it began investing in Australia after the Global Financial Crisis pushed down asset and commodity prices.

It acquired, through different subsidiaries, lead-zinc producer Perilya for $45.5 million, coal producer Caledon Resources for $500m, copper and gold company PanAust — with a massive prospect awaiting commitment in Papua New Guinea at Frieda River — for $180m, and rare earths producer Northern Minerals for $60m,

It also paid $15m for a large stake in gold and base metal explorer Hawthorn Resources.

Leading Chinese financial website Caixin reported that most of these deals had since made losses, with calls on further capital from GRAM.

Li Zezhong, who worked for GRAM for 11 years, ultimately as president, was then appointed mayor of Zhuhai, a thrusting city of 1.5 million on the western side of the Pearl River Delta, just north of Macau.

It was his successor at GRAM who urged a deepening of the investigation into the company’s management.

Last month it was announced that Li Zezhong was being investigated for “serious violations of party discipline,” believed to relate to his time at GRAM.

Four colleagues from his time at the company are already being prosecuted for corruption.

Caixin has reported that investigators are also seeking to interview Liu Facai, now living in Australia. He chaired the committee responsible for all state assets in Guangdong province when he led a team to Australia 11 years ago to explore investments in mineral projects.

Caixin said that he and his son, who was already living in Australia, introduced GRAM to firms in which the company went on to invest.

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Ongoing unrest affecting Porgera mine operations

The National aka The Loggers Times | September 20, 2017

PORGERA mine operations have been disrupted by the ongoing unrest and roadblocks, according to mine operator Barrick Niugini Limited.

Executive managing director Richmond Fenn said it had significantly impacted communities and businesses in the district.

“The unrest and violence we have seen in recent weeks, combined with frequent road closures on the Highlands Highway, not only impact operations at the Porgera mine, but also prevent the movement of people and goods to and from the region,” Fenn said.

“We hope that the situation improves soon, and we are working to assist the government and community leaders in bringing about lasting peace in the area.”

The two-week closure of the Wabag-Porgera road was lifted yesterday but a truck belonging to iPi Transport was torched soon after.

iPi Transport general manager Maso Mangape told The National that the roadblock was set up by relatives of a boy alleged to have been killed by the security forces last month.

“As two of our trucks were returning empty from Porgera, one was held up or hijacked at the Liop-Ipai section of the road just before Laiagam, and torched. Nothing is recoverable,” Mangape said.

“We are yet to establish the reasons and motives behind this action. It was at around the same location that a local was held up in his bus and shot dead about two weeks ago.”

Roadblocks at Surunki, Jiwaka and Chuave in the past two months “have cost this company so much”.
Mangape said it was frustrating for road-users such as iPi servicing the giant Porgera gold mine and helping contribute to the economy of this country, pay taxes and create employment.

“It is disappointing to see the Government not acting promptly to address these issues on the road,” he said.

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New governor signals approval for Frieda river mine

East Sepik’s new governor, Allan Bird, has signalled his approval for the planned Frieda river mine – all he wants is a government assurance ‘everything will be fine’ – SURELY HE IS NOT THAT STUPID?

Possible mining impact on Sepik river a concern

By Dorothy Mark | The National aka The Loggers Times | August 30, 2017

EAST Sepik Governor Allan Bird has warned that the start of the Frieda gold and copper mine on the border with West Sepik will depend on an assurance by the government that the river will not be polluted.

Bird said the people depended on the East Sepik River daily and did not want it polluted by the activities of the Frieda gold and copper mines.

He was responding to the concern raised by Madang provincial mines director John Bivi on the operation of the Wafi gold mine in Morobe, Marengo in Madang and Frieda in East Sepik.

Bivi requested Bird to highlight this problem in parliament if there is debate on the three mines to begin operating quickly.

Bird said he would not comment on Wafi and Marengo but he would see that the people of East Sepik get the maximum benefit from the Frieda mine.

“We don’t  want what happened at OK Tedi to happen to us. So we will be very careful with this one,” Bird said.

Ramu development foundation director Dr Boga Figa asked Bird to assist in any way possible to have a feasibility study carried out to construct a road from  Banu Bridge to Forogo which could link to East Sepik.

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All that glitters is profit in China’s gold mines as demand for safe haven boost precious metal sales

All that glitters is profit in China’s gold mines as demand for safe haven boost precious metal sales

Zijin Mining’s first-half profit almost triples as Zhaojin Mining’s profit grows 56 per cent.

Enoch Yiu | South China Post | Sunday, 20 August, 2017

Zijin Mining Group and Zhaojin Mining Industry, among two of the Chinese gold industry’s leading miners, reported bumper interim profits, bolstered by surging gold prices amid rising global demand for safe haven investments, and increasing ales at home.

Zijin’s net profit almost tripled to 1.5 billion yuan (US$224.8 million), or 0.069 yuan per share, in the first six months of the year. Zhaojin’s net income rose 56 per cent to 396.64 million yuan, or 0.13 yuan per share, in the same period.

“Hedging demand triggered by political uncertainty became the main driver of the periodical increases in gold price” in the first half, Zhaojin’s chairman Weng Zhanbin said in a statement to the Hong Kong stock exchange.

The improving earnings underscore how an 8 per cent rise in the global price of gold in the first six months of the year has lifted the fortunes of Chinese miners. Earnings were also bolstered by China’s increasing appetite for the precious metal, both as a safe haven investment and as collectible, with the industry’s sales rising 10 per cent to 545 tonnes during the period.

“Mining segment delivered promising results, with the production volume of gold, copper, zinc and other key metals continuing to lead the industry,” said Zijin Mining chairman Chen Jinghe said in the result statement.

Zijin operates mines in nine overseas countries, extracting silver, zinc and copper. Among them, copper production increased 10 per cent while zinc production rose 8.6 per cent.

“During the reporting period, the company’s overseas projects maintained a good trend of development. The outputs of the Porgera gold mine in Papua New Guinea, the Jilau/Taror gold mine in Tajikistan, and the zinc and multi-metals mine in Tuva, Russia increased,” Chen added.

“ In the second half of 2017, developed economies such as Europe and the United States are expected to stabilise and gradually recover, while the Chinese economy will remain stable and sustain a positive trend, the results of supply-side reform will begin to emerge, and the cyclical consolidation of bulk commodities has probably completed,” Chen said.

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Solomons landowners discuss concerns on reopening gold mine

The over-full tailings dam facility at the Gold Ridge Gold Mine on Guadalcanal in Solomon Islands in January 2015. Photo: copyright Dr Matthew Allen – ANU

Landowners on Guadalcanal in Solomon Islands have been consulted about the proposed reopening of the Gold Ridge gold mine.

The mine was closed in 2014 after massive floods and its ownership was then transferred from the Australian owner St Barbara to a local land-owning company Guadalcanal Community Investments Ltd.

Guadalcanal Community Investments Ltd is now working with Chinese-owned Australian property developer AXF Group which plans to have the mine operational by the end of 2018.

Bringing the gold mine back to life is also a major policy objective of the government which says it wants to do it right.

Members of landowning communities discussed a range of issues with government officials and company representatives relating to royalties, security, environmental impact, revenue sharing and the relocation of people.

They were assured by both the government and the company that their concerns would be taken onboard and addressed to ensure a smooth reopening.

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