Tag Archives: fly-in-fly-out

Federation Backs Ban On Fly-In Fly-Out

Post Courier | July 9, 2019

The Resource Owners Federation of Papua New Guinea has commended Minister for Immigration and Border Security Petrus Thomas on the proposed ban of the controversial fly-in fly-out (FIFO) system of employment by the extractive and other industries.

Federation president Jonathan Paraia said the practice has seen the loss of billions of kina in disposable income and other benefits over many decades to foreign countries.

He claimed that it was first introduced by the Ok Tedi, Porgera and Lihir mines which has not only seen the loss of disposable incomes of the employees but has also denied the project areas of social, economic and infrastructure development which could have improved the life styles of the citizens of those areas and the country.

“The resource owners of this country have persistently complained about the FIFO system to successive governments for decades through media publicities and others but no action was ever taken by any government to ban the system, for reasons only they can explain. It is their deliberate negligence that has seen the loss of billions of kina to the country,” said Paraia.

He said the federation has not yet identified any country in the region that allows foreign employees to work in their countries on a FIFO basis. Instead, the foreign workers are required to live in the countries of employment with their families for the duration of their employment contracts.

“This requirement ensures that the country and its communities in which the foreign employees work bene t from the disposal incomes of those workers.

“For example, some Papua New Guineans work and live in Australia, New Zealand, Cananda, Africa and other countries, but they do not fly in and fly out from Papua New Guinea on a regular basis,” he said.

The federation expects that the proposed policy, if adopted, will see a significant development of quality infrastructure in housing, health, education and commercial facilities, to service non y-in y-out communities of employees who will now live and spend their disposable incomes within the country boosting its economy.

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Govt To Review FIFO: Minister

Gorethy Kenneth | Post Courier | June 25, 2019

The government will review the fly in-fly out (FIFO) workforce arrangements for foreign workers. This may now put an end to K91 million spent annually on this exercise. Minister for Immigration and Border Security Petrus Thomas announced this yesterday.

Mr Thomas said the Immigration and Citizen Authority (ICA) is now looking at issuing long-term working residence visas by next year which is in line with its organisational reform and improvement of service delivery under its Five-year Corporate Development Plan (2018-22).

The Minister referred to the study carried out by National Research Institute in 1997 on the effects of fly in-fly out on the Porgera mining project which revealed that the PNG economy was losing between K36 million and K91 million annually on direct national income.

He said the Bougainville Copper Mine had successfully maintained a small satellite mining town with classic facilities that were built to accommodate workers for the Bougainville Copper Mine.

“There was sufficient cash flow injected directly into the local communities with high returns gained from the capital investments, he said.

Mr Thomas said these changes to the frequent abuse of the 60-day multiple entry visa by foreigners had prompted him to suspend it last year.

“The multiple entry visa category had been reviewed and will be introduced again once cabinet approves the new conditions, fees and guidelines,” he said.

Similarly, Mr Thomas was of the view that the fly in-fly out practice has also been abused by many foreign em-ployers and contractors after receiving criticisms lately from MPs and concerned landowners of resource project areas.

“The fly in-fly out practice may have worked in some short-lived projects, but the impact of FIFO and contribution to host communities, their social welfare and economy has never been truly assessed in long-term projects,” he said.

Mr Thomas said part of the issue lies in the distant lack of national data. “Various agencies supposed to be integrated to streamline these processes had not succeeded,” he said.

“There was no viable data or studies carried out in the past to justify foreign workers’ fly in-fly outs continuous practice.

“It appears that PNG has been under the notion that the FIFO system works in every particular way and no one bothered to review it.”

Mr Thomas said while the government is embarking on developing few new resource projects like Wafi-Golpu and the Papua LNG Project, it should also be mindful of such fly in-fly out arrangements that could potentially suck opportunities during this thriving economic situation.

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No Ramu extension until benefits are guaranteed: Govt

‘Ramu nickel mine is the worst ever State negotiated mine with no benefits to the locals’ – Yama

Loop PNG | February 12, 2019

Prime Minister Peter O’Neill has announced there will be no extension of the Memorandum of Agreement (MoA) for the Ramu NiCo mine in Madang Province.

The initial MoA was signed in 2000 and expired in March 2018. It is now due for a review, however the Prime Minister announced last Friday that there will be no agreement until government is sure there is fair benefit for the people and the State.

“The mine agreement has expired and we will renegotiate so that our people benefit most. Bai yumi stap na lukluk tasol ah? Nogat! Nogat! Em blong yumi. Yumi mas gat sampla sher stap insait. Bai yumi stretim, Gavana bai yumi stretim, mark my words. Yumi mas lukautim ol pipol blong yumi pastaim,” O’Neill said. (Will we just stand and watch? No! No! This is for us. We must have some share in this. We will fix this, Governor we will fix this, mark my words. We must first take care of our people.)

He told Governor Peter Yama that they had a big task ahead to negotiate the new terms and conditions of the new agreement.

Yama expressed passionately that the Ramu NiCo mine was the worst ever State negotiated mine with no benefits to the locals in Kurumbukari and Basamuk. Concerns have also been raised that other minerals apart from nickel and cobalt have been extracted and exported.

“The people of Basamuk must have spin off businesses. They must have good roads, good housing, health centres, schools, water supply and electricity. Right now Rai Coast and Usino-Bundi are the least developed districts in the country despite being hosts of the Ramu NiCo mine and also the Ramu Agro Industry for Usino Bundi,” Governor Yama said.

Minister for National Planning, Richard Maru, visited Basamuk last Thursday and met with the mine operator, MCC, and encouraged all stakeholders to now focus on a way forward that will benefit the company, province, landowners and the State.

At the moment, the State is not an equity partner in the mine project. There has not been any corporate tax and no Goods & Services Tax paid by the company since production began in 2012.

Furthermore, there is no benefit sharing agreement for the landowners in the project. Minister Maru said in the future, MoA’s must have benefit sharing agreements where landowners, the host province and the State must have shares in the project. This will be the case for Wafi-Golpu Mine, the Frieda Copper Mine and any other upcoming mines in the country.

“MCC is not the enemy, we are partners in development and so in the negotiations for the new MoA, we must ensure win-win situation for all parties involved,” Minister Maru said.

He said Madang had the economic potential and opportunity to double and triple its internal revenue and become a major economic hub in the Momase region. Minister Maru challenged Governor Yama and all the other MPs from Madang to focus, cooperate, communicate more for the greater good of the province.

Minister Maru is certain MCC has by now recovered its initial investments in the mine. This also explains why the Ramu mine is looking to invest a further US$2 billion to double production. The State, provincial government and landowners must now take up equity in this lucrative mine under the new agreement that the Government will take on together with MCC. The challenge now is to properly identify the landowners and Mineral Resources Authority (MRA) must ensure this exercise immediately by MCC.

In saying that the company must not feel that it has to solve all the problems in the area, Minister Maru encouraged MCC management to participate in the new-look Infrastructure Tax Credit Scheme which will be launched in March. He also urged the company to work with the PNG Government to seek grant funding from the Chinese government to build most needed infrastructure in the Usino-Bundi and Rai Coast districts.

The particular focus would be to build a highway between Erima to Saido and other roads, health and education facilities within these two districts.

The Ramu NiCo mine has a 135km slurry pipeline that runs through Usino-Bundi and Rai Coast districts.

Minister Maru also maintained that mines should do away with the fly-in fly-out arrangement and return to the model of the Bougainville Copper Limited where mining townships must be built at the mine sites.

Governor Yama also supported the position of the Government of Morobe and the Tutumang Government that there shall be no “Fly in Fly Out”, for the Wafi -Golpu Mine Project and other Mines and Resource Projects into the future.

“We will maximize revenue flows from all these projects to go to the local people, landowners and to our Government and to remain in the country. Hospitals, schools, a township and other utility services are built there. There’s no reason why we shouldn’t use this model,” Maru said.

“If we want to allow the revenue from these mines to rotate within PNG and help build our country, in the form of taxes, employment and so on, we must walk away from the fly-in fly-out arrangement.”

Maru said the Government is committed to build a highway from Erima to Saidor in Rai Coast District to assist the people living along these areas access markets and services and is seeking the support of the Chinese government to focus their development grants away from Port Moresby to two the remote districts of Usino- Bundi and Rai Coast, which hosts the only Chinese owned mine in Papua New Guinea, the Ramu NiCo Mine.

A State Negotiation Team will be put together as soon as possible to commence discussion of the future of the mine and its stakeholders, including the State and the landowners.

The Prime Minister himself announced that he will chair the State negotiating team with the Madang Governor as key members of the State Negotiating Team.

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MP Mirisim Supports No Fly-In-Fly-Out for Frieda mine

Matthew Vari | Post Courier | January 23, 2019

Member for Telefomin and Minister for Defence, Solan Mirisim has appealed to the Freida River project developers to seriously not take on the fly-in-fly-out arrangements for mine staff.
Mr Mirisim said this last week during a press conference held alongside Minister for National Planning and Yangoru-Saussia MP Richard Maru and Ambunti Drekikir MP Johnson Wapunai in Port Moresby regarding the Freida River project development.
“That also goes for Freida River project, there is no fly-in-fly-out, there is got to be a township so let the landowners and all the employers comes in to participate in the local economy and communities.
“So let me appeal to the company or developer that there should not be any fly in fly out and there has got to be a township.
“Township we have been planning for a big airport in Green River in the center where the township can be up to the Freida River project township.”Mr Mirisin’s district sits where the project is set to be developed, and his comments on the issue were made on the back of Minister Maru’s stance on the issue that no such arrangement is to take place for the Wafi-Golpu project in Morobe.“We are building a national airport there (Morobe) at the cost of K1.5 billion. It has a city of its own and it will be an anchor development that will complement the airport.“And Morobe and Lae already have the wharf and facilities and I really want to see that, and there cannot be any excuse as far as I am concerned.“Morobe and Papua New Guinea must get maximum benefit from the development of their resources,” Mr Maru commented on the Wafi Golpu project development.

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Maru Supports Morobe’s Stand On No ‘Fly In Fly Out’

Ummm… “The best resource project that I have seen in my lifetime is the Bougainville copper mining project”.

Post Courier | January 18, 2019

National Planning Richard Maru has come out publicly to support the stance taken by the Morobe provincial government to oppose ‘fly in fly out’ arrangement for workers of the Wafi-Golpu project.

This is the first time a very senior member of Government has come out on the issue that has been a critical mainstay of discussions and forums by landowners and leaders alike in the Morobe province.

Minister Maru said if there was one thing that his government was taking away from mineral development, it was learning from previous Governments mistakes to not getting the best deal for the country.

“In this new deals that we want to put together for this country, under the new mining agreement for Wafi Golpu and Freida and even the second LNG project we are going to make sure that Papua New Guinea benefits more than any other resource projects in the past.

“I want place on record, this morning (yesterday) that I support the position taken by the Governor of Morobe and the people of Morobe that there will be no fly in fly out in the Wafi Golpu project.

“As planning minister we are already planning for a township at Nadzap and long term employees for Wafi-Golpu as far as I am concerned must live in Morobe and the income they generate must be used in Papua New Guinea, spent in Papua New Guinea, so we get back GST and the money must re-circulate within our economy,” Minister Maru said yesterday.

He said the situation where all resources are being depleted, all the monies end up in other countries all contribute to current issues being such as foreign currency shortages.

“As planning minister I do not support that, I want to see maximum benefit, families living here better, schools being built with the support of the resource companies, better towns being built.

“I want to say this and I make no apology to anyone. The best resource project that I have seen in my lifetime is the Bougainville copper mining project.

“They not only built a copper mine, they built a town, the best hospital, a supermarket, they provided international schools and all the families who were there and the benefits trickled around Bougainville.”

He said the model of BCL is need in the country.

“This is what will help to keep up the maximum revenue flows within this country and make sure that our country and this people will benefit of the wealth of our resources.”

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PNG mine workers “benefit from FIFO lifestyle” claims industry

PNG Resources | November 26, 2018

A questionnaire by the PNG Chamber of Mines and Petroleum has unearthed a range of benefits that the Fly-in/Fly-Out (FIFO) operating model delivers to PNG workers, their families and the broader community.

Distributed to mining projects with PNG employees engaged under FIFO arrangements, the questionnaire revealed inspiring stories and long-term benefits for employees from across PNG.

Thousands of workers within Papua New Guinea’s mining industry are employed on a FIFO basis, complementing the staff drawn from local communities and host provinces.

Respondents cited a number of benefits of the employment arrangement including:

  • Quality time to spend with their partners, children and extended families
  • Time to take part in community obligations, volunteer at their children’s schools and participate in church and community activities
  • Time to focus on achieving personal goals, including home improvements and starting part-time businesses
  • Opportunities to travel
  • Sufficient time to switch off completely and relax away from the pressures of work

Dr Albert Mellam, executive director of the PNG Chamber of Mines and Petroleum, said the responses also highlighted the financial benefits that FIFO delivers, enabling workers to secure better opportunities for their families, including education and health.

FIFO workers will typically work on a roster such as 15 days at work, then 13 days off; or 21 days on site, followed by 14 days off.  Many PNG mine workers have been participating in a FIFO arrangement for 10 years or more, and express great satisfaction with the FIFO system.

“Our research shows that FIFO workers are in many instances able to achieve life goals in their home communities which would not have been possible in a traditional working arrangement,” said Dr Mellam.

“Importantly, the FIFO employment model provides the best balance of shared benefits to communities right across PNG.

“It enables employees and their families to remain within their own community, rather than permanently relocating to remote areas where the majority of the mines operate. By returning on a regular basis to their families, the economic benefits of mining are spread instead of being concentrated in a single area.”

Senior engineer Joseph Palei of Porgera Joint Venture says as a FIFO worker he is able to spend more time with his family in Lae and use his days off to relax away from the worksite.

“When I return to the gold mine after 14 days, I am more focused and can perform my job to a higher level of safety and diligence,” said Mr Palei.

“Being a FIFO worker has also allowed me to build a home during field breaks and provide better opportunities for my family, including health and education.”

Highly-regarded independent mining expert Richard Jackson recently presented at a Chamber workshop, in which he explained that building a project township for a mine does not necessarily deliver a better outcome for the local community.

“Even from a landowners’ viewpoint, building a project town has some disadvantages. Many of the economic benefits derived from such a township will not accrue to local people unless a great deal of effort is put into planning for them.

“Most resource projects are located in what were previously remote areas whose relative lack of access to the outside world placed very severe restrictions on their potential for trade and economic development. In many cases, despite the construction of roads, airports and other physical forms of communications and despite the arrival of telecommunications, once the project ceases to operate, the basic fact of geography re-asserts itself. They remain remote and at a disadvantage for economic development.

“Building a mining township will provide access to modern services, but only during the life of the mine.”

Mr Jackson said there were several other ways of providing sustainable benefits for local landowners including skills training throughout the life of the project.

“This form of FIFO has a major benefit,” Mr Jackson added. “It means that mine workers spend their earnings in existing towns and villages across PNG and thus spread mining benefits in ways that no government regulations or policies can do.”

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Morobe opposes fly-in-fly-out for Wafi-Golpu mine workers

Wafi-Golpu joint venture mine.

The National aka The Loggers Times | 31 July 2018

THE Morobe government does not want “fly-in-fly-out” for workers for the Wafi-Golpu mine project, says Governor Ginson Saonu.

Saonu said the proposed Nadzab Airport City would cater for the accommodation of employees.

“We are prepared to share whatever land we have to make this happen,” he said.

“We cannot just talk about it. We have plans for accommodation and all facilities that are needed by the employees of the mine.”

Saonu said this when presenting Morobe’s five-year development plan to Planning Minister Richard Maru in Port Moresby yesterday.

Maru said the government would budget for land at Nadzab to be made available to the mining company.

“We would like all the families to be located there, housing estate to be located there and they can easily go up to the mine,” Maru said.

“We want to make sure that Nadzab has a city and supermarkets.

“We must look at water, sanitation and sewerage for the airport.

“We really must have a well-planned development around Nadzab.”

Maru said he had spoken to Lands Minister Justin Tkatchenko about putting a team together for Nadzab Airport City development.

“We are excited about the mine starting up,” he said. “Wafi-Golpu will be a game changer for Morobe.”

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