Tag Archives: coal mining

Green energy the way forward for PNG Power

PNG Power undermines government investment in coal mining and Mayur Resources’ plans

Salome Vincent | PNG Loop | 25 August, 2017

The focus going forward for PNG Power Limited is Green Energy.

Acting Chief Executive Officer, Alex Oa said recently that PNG was one of the first countries to sign the Paris Agreement on reducing carbon emissions, and thus the organisation is putting emphasis on renewable energy.

Oa added that in response to Papua New Guinea’s efforts in Climate Change, PPL’s focus is on solar and hydro biomass to reduce the amount of emission released into the atmosphere.

“Fossil fuels are expensive and resorting to renewable energy is cost-saving, and in the long run – prevents further repercussions to the atmosphere.

“Solar farms are being taken into consideration with cooperation established between PNG Power and the Asian Development Bank, but land availability remains the biggest challenge yet, he adds.

Meantime, Oa also highlighted that the other best way to achieve this is using solar panels on rooftops however this will require policies and guidelines on how to go about doing this.

Going forward Oa explained that he is very much interested in pushing the rooftop solar panel option.

Advertisements

2 Comments

Filed under Environmental impact, Papua New Guinea

Papua New Guinea moves to launch new coal mining industry

In 2006, a young girl walks between coconut palms on the coastline of Puil Island, part of the Carteret Islands, where rising sea levels eroded much of the coastlines and contaminated crops and freshwater. In 2009, evacuation began to nearby Bougainville Island. Photo by Jeremy Sutton-Hibbert/Greenpeace.

Catherine Wilson | Mongabay | 16 May 2017

Recent plans call for both coal mining and coal-fired electricity generation, raising questions about the government’s commitments to climate change action and leadership.

  • Two years ago, the Papua New Guinea government allocated $3 million for research into the viability of coal extraction.
  • An Australian company plans to build three mixed coal power generation plants in the country.
  • Proponents argue affordable and reliable electricity is needed to boost economic growth, while opponents cite environmental risks including the threat of climate change and rising sea levels.
  • Analysts also question how much urban-based power plants will raise electrification rates, since most un-electrified households are in rural areas that cannot easily be connected to electrical grids.

The Papua New Guinea (PNG) government is actively pursuing the potential of developing a coal mining industry for the first time in the country’s history. Two years ago, it channeled 10 million kina (US$3million) to its Mineral Resources Authority for research into the viability of coal extraction. Now, an Australian company engaged in exploration is proposing to build three mixed coal power generation plants in the cities of Port Moresby, Lae and Madang, citing the need for affordable and reliable electricity to boost economic growth.

But environmental science experts and civil society groups are concerned about the potential environmental and climate impacts of developing a domestic coal industry, and the risk of undermining the country’s commitments to climate change action and leadership.

“It is no secret that the first ever climate change refugees in the world are from Papua New Guinea,” declared Dagia Aka, member of the youth climate change movement, 350 PNG.

In 2009 residents of the Carteret Islands in the far east of Papua New Guinea were forced to begin migration to nearby Bougainville Island after rising sea levels and the contamination of crops and freshwater sources rendered their island homes uninhabitable.

“Mining ventures in Papua New Guinea have a dark history of destroying the environment around them and there has been a failure to put measures in place to avoid such [damage],” Aka continued.

“Given the overall assessment of PNG’s energy policy and its natural resources, it is important not to develop the coal mining industry,” Chalapan Kaluwin, head of environmental science and geography and director of the Centre for Climate Change and Sustainable Development at the University of Papua New Guinea, told Mongabay.

“The sustainability of other energy sources, such as geothermal and renewable energy, including wind, solar and waves in the country, is significant. Coal mining has far more adverse negative impacts on the overall sustainability of PNG, its landowners and long-term health of its communities.”

Exploration underway

While three international companies — Waterford, Pacific Mining Partners and Mayur Resources — are currently engaged in coal exploration in PNG, the Department of Petroleum and Energy has yet to report the granting of any coal mining leases.

But Brisbane-based Mayur Resources, which is exploring for coal in the southern Gulf Province and claims to have discovered extensive reserves, is already planning to build three urban-based mixed coal electricity generation plants.

“The first project to build an Enviro Energy Park (EEP) at Lae with 2MW solar and 2x 30MW conventional generation fueled by domestic coal and PNG renewable biomass is in a very advanced stage waiting only the conclusion of a Power Purchase Agreement with PNG Power,” Paul Mulder, Managing Director of Mayur Resources told Mongabay.

He said the project already had environmental approval from the government’s Conservation and Environment Protection Authority (CEPA), which was granted in June last year.

While Papua New Guinea does not yet have coal mines, it has already faced severe environmental impacts from mines, such as this open-pit gold mine in the country’s Western Province. Photo by Glen Barry/Greenpeace.

PNG’s extractive industries: costs and benefits

PNG, with major reserves of gold, copper, nickel, silver, oil and gas, has been a natural resources-dependent economy since Independence from Australia in 1975. The mineral resources sector alone accounts for more than one-third of government tax revenue. In 2013, taxes on the extractive industry amounted to US$292 million. From 2011-2013, it contributed an average 15.6 percent annually to the country’s GDP.

Coal, which remains one of the cheapest available sources of energy and fuel, drove industrialization and modernization in Europe and North America. But the environmental impacts of coal mining include the depletion of forest cover, air and water pollution, and contribution to global warming through the release of methane, a greenhouse gas, from natural coal seams. Burning coal to generate electricity produces carbon dioxide and oxides of sulfur and nitrogen, further contributing to the greenhouse effect.

This is a major concern for small Pacific Island developing states which are disproportionately exposed to climate change, whether in the form of extreme weather or rising sea levels.

In April last year, in line with the forceful advocacy by many Pacific Island leaders for industrialized nations to reduce their carbon footprint, Charles Lepani, PNG’s High Commissioner to Australia, publicly called on the Australian Government to downsize its coal mining industry in light of the Paris Climate Agreement and its goals.

Australia produced an estimated 16.3 metric tons of carbon emissions per capita in 2013, compared to 0.8 tons per capita in PNG, the most populous Pacific Island nation of 7.6 million people.

Forest lining the Bairaman River in PNG. New Guinea Island has some of the world’s largest and most biodiverse remaining tropical forests. Photo by Paul Hilton/Greenpeace.

“To cry foul to the major contributors to the fossil fuel industry and climate change, yet participate in something that will only make matters worse for us definitely does not paint a good picture,” Dagia Aka responded. “Pacific Island countries have a moral responsibility to take a lead with the Paris agreement simply because we are the ones facing the worst effects of climate change at this point in time.”

Other regional governments have also expressed concerns about coal mining. In 2015 leaders of Pacific Smaller Island States — comprising the Cook Islands, Kiribati, Federated States of Micronesia, Republic of the Marshall Islands, Nauru, Niue, Palau and Tuvalu — issued the Port Moresby Declaration on Climate Change which calls for “a global moratorium on all new coal mines.”

In countries across the region, higher sea levels and temperatures have led to the flooding of villages, coastal erosion, deteriorating crop yields and freshwater supplies. Affected communities have been forced to relocate in the Carteret Islands in PNG, Nuatamba and Nararo Islands in the Solomon Islands and Vanua Levu in Fiji.

Internal migration is a very expensive undertaking for Pacific Island governments presiding over small economies and restricted budgets already over-stretched with a wide range of human and socioeconomic development goals.

And the burden of adapting to climate change is only forecast to increase.  In PNG alone, annual mean and extremely high daily temperatures, ocean acidification and sea levels are all predicted to rise this century, reports the Pacific Climate Change Science Program (pdf). Under a high emissions scenario, annual surface air temperatures could rise between 2.1-4.2 degrees Celsius and sea levels by 0.87 meters by 2090.

Aerial view of a coal mining operation in Palangkaraya, Central Kalimantan, Indonesia, illustrating the damage coal mining causes forests. Photo by Daniel Beltra/Greenpeace.

Future plans

The global pact reached at the COP21 United Nations Climate Change Conference held in Paris two years ago does not contain an explicit anti-fossil fuel stance. However, it does state “the need to promote universal access to sustainable energy in developing countries …. through the enhanced deployment of renewable energy” as part of the overall ambition of ensuring the global average temperature increase does not reach or exceed 2 degrees Celsius above pre-industrial levels.

In March 2016, PNG, the first nation to submit its national plan for climate action following ratification of the Paris climate agreement, stated “the main mitigation contribution for PNG would be in terms of an indicative replacement of fossil fueled electricity generation with renewable energy sources” with a target of employing “100 percent renewable energy by 2030, contingent on funding being made available.”

Mayur Resources, developer of the Lae energy park, is keen to promote its support of the country’s transition to low carbon energy. It claims that its plants, by combining coal with renewable energy sources and employing state of the art clean emissions technology, will only result in PNG using coal for 10-20 percent of its power generation, in contrast to 71 percent in Australia. The company also argues the facilities will not increase emissions and comply with the nation’s commitment to the Paris climate agreement.

“The proposed [Enviro Energy Park] project will maintain the same level of carbon dioxide as the current level from the power generation sector, as nearly 40-50 percent of current power is being generated through diesel and heavy fuel oil. However, the EEP will bring in substantial environmental benefits to the ambient air quality [in Lae] by massively reducing the acid rain-causing gases, like oxides of sulfur, potentially 8-14 times less, and oxides of nitrogen, about 12 times reduced,” Mulder said.

However, while Mayur resources classes biomass as a carbon-reducing element of the project, many researchers question the tendency to classify biomass as a carbon-neutral energy source.

London-based Chatham House reports that “while some instances of biomass energy use may result in lower lifecycle emissions than fossil fuels, in most circumstances, comparing technologies of similar ages, the use of woody biomass for energy will release higher levels of emissions than coal and considerably higher levels than gas.”

Rounded white stones line the Bairaman river in West Pomio district. Photo by Paul Hilton/Greenpeace.

Mayur Resources further says its planned coal mines will result in minimal land disturbance mainly due to “the scale of these operations being very small compared to most other mines globally…..being in the bottom 1 percent of the smallest mines.”

But the University of Papua New Guinea’s Kaluwin claims the full potential impacts of the company’s planned operations are still to be thoroughly assessed.

“The impacts on the environment, destruction of land, atmospheric pollution, water, livelihoods, health, housing, education, culture and traditions, economic benefit sharing and most importantly governance, have not been properly evaluated for such a project to be implemented in PNG,” he said.

Businesses and the government also make an economic argument for coal. Mayur Resources believes that low electricity generation costs of about $0.10 per kilowatt hour, about 35-40 percent lower than the average wholesale cost of power in the local area, will boost business and industrial growth in the eastern coastal city of Lae. The urban center is strategically located between a major cargo shipping port and the Highlands Highway, the only overland transport network into the country’s heavily populated interior.

However, these urban-based plants will contribute little to increasing electricity coverage in rural and remote areas of the country where more than 80 percent of PNG’s population resides and energy deprivation is the greatest.

In this 2003 image, Melanie John, Lulu John, Aebi Sakas and Warume Sakas walk along a logging road in Western Province. The majority of PNG’s population continues to live in rural areas, which are nearly impossible to connect to a national electrical grid. Photo by Sandy Scheltema/Greenpeace.

Energy poverty is a major development challenge in the region.  Only 20 percent of households across the Pacific Islands region, and 12 percent in PNG, have access to electricity, hindering human and socioeconomic development.  An estimated 40 percent of PNG’s population live in hardship, only 63 percent are literate and only 40 percent have access to clean water.

Geographical barriers, such as arduous mountain terrain, dense forest and scattered islands, separated by the sea, make a national power grid virtually impossible. In this context, energy experts recommend greater investment in off-grid and standalone power systems, especially those compatible with renewable technologies, to achieve a substantial improvement in rural and, therefore, national electrification.

“Papua New Guinea, being a tropical island state, is a prime area for solar and hydro clean energy,” Dagia Aka emphasized.

2 Comments

Filed under Environmental impact, Papua New Guinea

Coal power generation given green light by CEPA

coal fired power

Read our related content

Frankiy Kapin | Post Courier | January 05, 2017

MAYUR Resource’s first proposed mixed coal power generation of 50 megawatts in in the country represents a miniscule [sic] 0.005 per cent, according to the company. Mayur stated that the area of impact will be comparatively minor, whilst it will use simple mining techniques and no need for chemical processing.

PNG will mine around 300,000 tons of coal per year while Indonesia mines 300 million (and increasing) – 1000 times more and by comparison in Queensland the recently approved Adani mine will abstract up to 60 million tons per year – one of the biggest coal mines in the world, says Mayur Resources.

“Even Japan, in the post Fukushima age, is building 43 coal new fired power stations in the next 12 years that will be 467 times bigger than what PNG is proposing. Indonesia is building 100 new coal-fired power stations to lift its people to a superior level of living standard which is one thousand times bigger against PNG’s proposed EEP. In Asia alone, there is over 1 million MW of new coal fired power capacity in the pipeline. Mayur’s EEP is 50MW, which represents a miniscule 0.005 per cent of this figure. ”

The Enviro Energy Parks (EEP) will produce 15 per cent less carbon dioxide (CO2) against diesel via the use of biomass and cogeneration by product steam use. The energy park (EEP) also reduces by 16 times and 11 times respectively sulphur dioxide and nitrogen oxide that is prolifically emitted in the middle of cities in PNG. 

Mayur says the EEP has been fully permitted by Conversation, Environmental Protective Authority (CEPA) as a result of being able to meet the reduced emissions stated above.

“This permit represents a new benchmark for power generation in PNG with significantly tightened emissions standards against current practice. These new standards have surpassed even what is acceptable in our first world neighbor Australia,” Mayur said.

The EEP has access to domestic (in country) vertically integrated coal supply as well as biomass and solar. (delinking power costs through vertical integration).

“The key here is priority to the power station has been contracted and will benefit the people by keeping energy costs lower. The vertical integration allows the coal price to be decoupled from international energy markets so that a far lower coal price is provided to the power station that directly benefits the people – this is responsible vertical integration where the people get the benefit from the resources,” said Mayur.

Mayur Power 1

2 Comments

Filed under Environmental impact, Papua New Guinea

MRA says government policy welcomes coal mining

coal-mining

Mayur yet to submit application for lease

Rosalyn Albaniel | Post Courier | December 21,2016

MINERAL Resources Authority (MRA) says no application has been made for a mining lease for coal to date.

However, it says mining for this mineral is permissible under the government’s open policy on minerals, exploration and development.

MRA was responding to questions put to it by the Post-Courier on government’s policy on coal and the likely implications that it may be contrary to the climate change agreements PNG has signed.

This is in light of announcements by Australian based Mayer Resources of their intention to mine coal in the Gulf Province for the power plants they are proposing to build in Lae, Madang and Port Moresby.

“Obviously MRA cannot comment on matters it is not involved in such as PNG’s international and other treaty commitments-that is a matter for those familiar with those arrangements.

“Let me be very clear the MRA has not received any contrary instructions from government on the development of coal mines. Until and unless we do, we continue to maintain the government’s open policy on minerals (including coal) exploration and development,” MRA managing director Philip Samar told the Post-Courier.

Mr Samar said from the outset while there had been some exploration, no mining lease had been granted as yet, adding that any such application would require an environmental permit issued by the Conservation and Environmental Protection Authority (CEPA).

“Part of CEPA’s assessment would include the matters being raised about environmental concerns over coal.

“Mayur Resources, Waterford and Pacific Mining Partners are some of a number of companies who have been exploring for coal in PNG for a number of years. Waterford recently presented a report on PNG coal potential, based on its findings to date,” he said.

He said exploration licenses are valid for two years and may be renewed, provided the tenement holder has been compliant with the license terms and performed its work program.

Leave a comment

Filed under Environmental impact, Financial returns, Papua New Guinea

Mayur Resources: Polye was briefed

coal fired power

Post Courier | December 14, 2016

Mayur coal power generation Company of Australia says Opposition leader Don Polye has been personally briefed on the Enviro Energy Park (EEP) proposal and he (Polye) was supportive of it. Mayur managing director Paul Mulder made this remarks brushing aside Polye’s criticism of the EEP clean coal fired power for PNG.

Mr Mulder in a statement said:

“The Opposition leader has been personally briefed on the EEP and was supportive of it following the detailed explanation and information provided on how the EEP will achieve a far superior environmental outcome and the nation changing impact of cheaper, more reliable power that will dramatically improve living standards and reduce energy poverty for the people. It is very disappointing that it has now been politicised.”

In response to the Opposition leader, Mayur Resources said that it is important the real facts are put on the table and not obscured by uninformed rhetoric on factors affecting climate change, coal use in Asia, coal mining, reduced emissions, environmental approval and delinking power costs through vertical integration.

Mayur Resources stated that the company fully recognises PNGs obligations as a signatory to the Paris Agreement/COP21 on Climate Change. The company said however, COP21 is not anti-coal, anti-diesel or anti-gas or anti- any other fossil fuels – rather it is about reducing emissions.

“The fact is PNG can use its own coal that is far cleaner than that used by other countries such as Australia and the majority of Asia for their power generation needs.” “In addition, PNGs first EEP will use ‘state of the art’ emissions capture technology that combines renewable fuels such as biomass and solar to provide a large net reduction in emissions,” the company said.

Leave a comment

Filed under Environmental impact, Papua New Guinea

UN Resident Coordinator, Roy Trivedy On Coal Mining in PNG

Leanne Jorari | EMTV News | 7 December 2016

Earlier this week EMTV News reported on the heated debate of coal mining in PNG and since then critics have joined in the debate.

The opposition will not support a coal industry, regardless of it being a lucrative business.

Also speaking against coal mining, UN’s resident coordinator, Roy Trivedy says,

“We should just leave the coal in the ground.”

Affordable and Clean energy is the seventh goal on the list of the United Nations’ global Sustainable Development Goals.

With this in mind, PNG being a signatory to the Paris Climate Agreement, many have opposed the idea of coal being mined in the country.

The fossil fuel has many adverse effects including the emissions of
greenhouse gases like carbon dioxide.

Mr Trivedy, who himself is quite vocal about renewable energy, spoke out against coal mining in the country.

Leave a comment

Filed under Environmental impact, Papua New Guinea

PNG Opposition opposes Coal Mining proposal

coal fired power

PNG Today | 7 December 2016

The government’s proposal to venture into a coal mine in the country has met resistance from the Opposition.

“The Opposition does not blindly support a COAL mine in Papua New Guinea. Regardless of it being a lucrative business or whether we have it in abundance or not, this is not an issue.

“We do not support a COAL industry,” said Opposition Leader Don Pomb Polye when commenting on the proposal.

There are very justified reasons to verify our position are:

1. The first is PNG is a signatory to a Climate Change Initiative. PNG is a host to one of the pristine environments in the world. We host the third largest rainforest in the world. We have our eco-system so diverse in all wildlife. It is like the Garden of Eden when God created. PNG would like to stand up as a leader and signatory to the global commitment of climate change initiatives. Coal, we know, has adverse effects. It produces more carbon dioxide. It gives off more greenhouse damages and that adds onto the problem of already existing chemicals in the atmosphere. That in turn increases temperature. We do not want to see PNG doing what is contrary to what it has already agreed to sign. PNG will need to stand up as a leader in this area. We have lost some of our own islands to rise in sea level due to global warming. In order to protect our people and our country from global warming, we have to do what it right. Definitely developing a coal industry in PNG is not a right thing to do;

2. The second reason is the country has not managed its resources prudently. In other words, the O’Neill-Dion government has not managed our proceeds from the extractive industry wisely to create a sustainable income for the country’s economy. For instance, we have seen the proceeds from the PNG LNG project sent offshore to repay commercial loans borrowed from overseas. We do not see any proceeds of existing extractive projects benefitting our people. The people of the five host provinces, which have signed the Umbrella Benefit Sharing Agreements, have been crying for their dues for more than four years. No benefit has gone to these people. The five provincial governments have continued to struggle to get the benefits to their provinces. The question is if we continue to allow our government to exploit more of our resources in the extractive industry like the Coal, mine, gas…etc., what is the guarantee that our people will be benefitting today whilst we experience evidently that the people of this country are not benefitting from what they own- the resources? Even the OK Tedi mine, for instance, from which the Prime Minister announced a 39 per cent equity to the landowners that has not been materialised. When will we see our people benefitting from the 39 per cent equity? There is no benefit but only sugar-coated talks. The government has also pushed for a project in New Ireland – seabed mine. We do not know the benefits. We do not also know what has happened to it. When I was a minister, I opposed this deep seabed mining because it damages the environment. The proceeds have not been prudently managed for the people.

Therefore, when the government continue to exploit more and more resources at the suffering of our people without exercising prudent economic management or giving benefits back to the people who own the resources, there is no guarantee that the new coal mine will benefit the people to build a strong economy. We must not develop projects which we already have their existence that are not benefitting our people. We need to diversify the country’s economy. We need to create a resilient and a sustainable economy. It is very important. We are yet to do that. We would like to see proceeds from the extractive industry diverted into building a very strong and big agriculture industry in PNG. We would also like to see a big manufactory factory developed from funds sourced from the extractive industry. These are the things which we should have achieved when we saw that the LNG proceeds were diverted elsewhere. We are yet to see these industries developed at least to see our people being turned away from the expectation of extractive industry to SME, tourism, agriculture or manufacturing-based economy. Without creating those industries to diversify the economy, the government deciding to develop a coal industry or any others devoid of proceeds materialised at the grassroots level, we feel that it is a waste of time and resources. It is a pure exploitation of what PNG offers as they do not earn benefits for the people who own the resources. These points must be observed by the government when bulldozing the project through.

We will fix the economic strategies and policies to create that sustainable and resilient economy to benefit our people for a long time. I want to move away from the traditional way of managing the economy. I want to move away from the extractive industry which is only temporary. I would like to create very permanent industries in agriculture, downstream processing, tourism, Information, communication and technology and building and empowering SMEs. How do we do this? I will make sure PNG Sustainable program is restored because it is a good program. The government has made a mistake to disband it. Review the Sovereign Wealth Fund as it deviated from its original version; strengthen the Extractive Industry Transparency Initiative (EITI), establish agriculture commodity stabilisation funds, Commercialisation of fertile lands (Sepik Plain, Markam Valley, Baiyer valley, Waghi valley, Papuan Basin, fertile lands in New Guinea Islands etc…) into huge agriculture projects. That is what we should be doing.

See also: Mayur company optimistic about coal power

8 Comments

Filed under Environmental impact, Financial returns, Papua New Guinea