Tag Archives: Lae

Coal plant proposal for PNG city a poor option – NGO

Lae, Papua New Guinea Photo: RNZI/ Johnny Blades

Radio New Zealand | 19 September, 2017 

A proposal for a coal-fired power plant in Lae is a poor economic and environmental option, according to an anti-coal group in Papua New Guinea.

The proposal by Mayur Resources to build a plant on the Lae Tidal Basin has lingered for a couple of years, but failed to get a purchase agreement from PNG Power.

However Mayur had approval from PNG Ports through its re-development of Lae’s important port area.

But Chris Lahberger from Nogat Coal PNG said the government knew that a coal plant was not an efficient way to generate energy.

“But it just looks awful as well, as PNG is a signatory to the Paris (Climate) Agreement to go one hundred percent renewable, and a coal mine with a forty year life span,” Mr Lahberger said.

“Mayur are now suggesting that the life span of this coal plant to be fifteen years. But the economics of that just doesn’t stack up. Like you would not make your money back from your investment if you ran it for just fifteen years.”

Mr Lahberger said renewable energy was a better alternative.



Filed under Environmental impact, Financial returns, Human rights, Papua New Guinea

Mayur company optimistic about coal power

Mayur Power 1

Frankiy Kapin | Post Courier | November 30,2016

MAYUR Resources power generation company from Australia is very optimistic in delivering the country’s first coal fired power station in Lae says managing director Paul Mulder.

Mr Mulder said on Monday in Lae the company has submitted a power purchasing agreement (PPA) to PNG Power Limited and is awaiting approval of the project year marked for 2019.

Mayur Resources is proposing to employ multi fuel clean coal technology and not a standard coal fired power station to supply 50 Megawatts (MW) of electricity to Lae city in the Morobe province.

He said Mayur will mine 250,000-350,000 tons of coal per annum from the Gulf Province and ship it to Lae for its power plant.

Mr Mulder said in perspective, China mines 3.6 billion tons of coal annually and Indonesia 3 million tons annually for their power stations.

He said Mayur was ready to deliver the cheapest, most reliable and environmentally friendly power supply that will improve the standards of living for customers.

Mr Mulder was accompanied by retired Australian Kangaroos captain and National Rugby League (NRL) icon Darren Lockyer who is also a shareholder of Mayur Resources to the University of Technology in Lae for an open forum attended by the Lae Chamber of Commerce, the Unitech senior management including Chancellor Sir Nagora Bogan and Vice Chancellor Albert Schram. The Morobe Provincial Government was invited but no representative turned up at the forum.

Mr Mulder said PNG is one third of the global population apart from its surrounding regions in the Asia Pacific who can utilise clean coal energy to alleviate poverty.

He said the quality of coal in PNG is far better than in Australia as well Mayur believes the company can meet all the commitments of Kyoto and COP21 arrangements to reduce greenhouse emissions and other pollutions. And as well significantly reduce the price of electricity.


Filed under Environmental impact, Papua New Guinea

PNG Cabinet yet to receive coal power plant bid

coal fired power

Rosalyn Albaniel | Post Courier | November 29, 2016

PRIME Minister Peter O’Neill says cabinet has not received any proposal on the coal-fired power plants that Australian-based company, Mayur Resources, is proposing to establish to remedy the country’s power deficiencies.

Mr O’Neill was responding to questions on the proposal by Australian company Mayur Resources to build three coal-fired power stations in the country. Furthering its implications is the climate change initiatives PNG has signed up to.

Mayur Resources is proposing to build three of what it says are multi-fuel facilities with clean coal technology and not standard coal-fired power plants.

The first has been earmarked for Lae city and which will supply 50 megawatts of electricity at a cost between K300 million and K400 million using coal that would be mined and shipped from Gulf Province.

The other two power stations will be built in Madang and Port Moresby.

Mr O’Neill said it was early days still to jump to any conclusion as to whether this was going to be an issue that would be bad for the country.

However, Mr O’Neill said advice would be sought from appropriate experts including from Conservation and Environment Protection Authority before any conclusive decision was reached on this project.

“It is quite obvious that coal generated energy is much cheaper than even hydro, gas and everything else and that is why countries like Australia and all the other big countries like Japan and India are using coal today as we speak.

“We must have an open mind but yes we are signatories to the climate change outcomes including COP21 and we will have to comply with them.

“We have already accepted that through Parliament and we have no choice but to work within that framework,” Mr O’Neill said.

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Filed under Environmental impact, Papua New Guinea

PNG Power says, no coal power station but coal exploration ongoing in Gulf


Scott Waide | EMTV News | 6 November 2016

The Chief Executive Officer of PNG Power Limited (PPL)  says  that the government power company received an unsolicited  proposal from Australian company, Mayur to build coal fired power plants in Lae and other centers but is approaching the proposal with caution amidst environmental concerns.

Bais said  signing any agreement for coal-fired power stations would put  Papua New Guinea in violation of international agreements including the Kyoto Protocol and the recent Paris Agreement.

“PNG Power is not venturing into any coal fired power station. We have a proposal from Mayur Resource Development and they have basically provided an unsolicited proposal. We, PNG Power, did not invite them to come in.

“We are conscious of the fact that there are agreements in place with regards to renewable energy and carbon emissions. The PNG Government is party to those agreements…”

Mayur’s proposal presents an  option  to build a 50-megwatt power station it says will drastically improve electricity output in major centers at a cost that is cheaper than PPL’s existing diesel power stations.

Papua New Guinea continues to present a fragmented front in terms of coal development. While PPL has made its stand clear,  Mayur’s drilling explorations  in the Gulf Province have been underway since 2015 with the blessing of  another arm of government – the Mineral Resources Authority.   The National Government has also committed  K10 million for research into coal development just as Pacific Island leaders call for the reduction of  coal use in Australia.

In April, Papua New Guinea’s  High Commissioner to  Australia, Charles Lepani, told Tom Inggulden of ABC’s AM program that Australia needed to cut back on coal use.

“The consequences of coal for instance, coal mining affects us, will affect us tremendously going forward,” Lepani said.

In Lae City, a proposed site is the Lae Wharf. This week, a meeting between Mayur and PPL, sparked outrage on Twitter with anti-coal campaigner, Nogat Coal, asking if there are better alternatives that can be pursued.

The Morobe Governor, Kelly Naru, meanwhile, says the provincial government has not agreed to anything and that it was pursuing an independent investigation to determine if  a coal fired power station is needed in Lae.

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Filed under Environmental impact, Papua New Guinea

PNG government still pushing dirty coal

Mayur Power 1

See also: Incompetent government all at sea over coal

Concerns raised over Lae Coal Power Plant Proposal
Scott Waide | EMTV News | 3 November 2016

The Morobe Provincial Government says it is conducting its own due diligence tests on a National Government driven proposal to establish a coal-fired power plant in Lae City.

It is understood discussions are currently underway with an unnamed foreign investor. However, PNG Power would not divulge other details of the discussions.

When contacted today, the Morobe Governor, Kelly Naru, told EMTV that he was aware of the discussions but the Provincial Government had not agreed to any terms and conditions.

“Discussions are ongoing and MPG is doing its own due diligence on concerns like environmental impacts and other issues.”

Pollution concerns have become the topic of discussion as environmental groups intensify a campaign to raise awareness over the impact a coal-fired power station would have on the local population and the environment.

“Is the best way to address PNG’s electricity shortfalls building a coal fired power plant?” Nogat Coal PNG asked on Twitter.

For the country of 8 million people it is a delicate balance. On the international front, Papua New Guinea has presented itself as a global member seriously concerned about climate change and alternative energy. But as other countries push for the reduction of coal use, PNG has initiated the discussions much to the dismay of international observers.

On the home front, Papua New Guineans have had to contend with ongoing power outages as the inefficiencies in power generation continue largely unabated.

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Filed under Environmental impact, Papua New Guinea

Gau: MCC must not use Lae port

Kolopu Waima | Post Courier

RAICOAST MP James Gau has urged the management of Ramu Nickel Company (MCC) not to transport chromite from Kurumbukari in Raicost to Lae wharf for export.

Mr Gau told a press conference yesterday that he was backing the call made by Madang deputy governor Bob Wati for MCC to stop transporting chromite from Kurumbukari to Lae.

Mr Gau said any resources that were developed in Madang and or any other province for that matter, must have return on benefits through internal revenue sources and community services obligations through socio-economic development programs.

He said it was unfair and an injustice to the people of Madang to have the shipments done in Lae.

“How can Madang, especially Raicoast where the refinery is located, benefit?” he asked.

The Raicoast MP said that experiences had shown that Madang had missed out on various internal revenue sources and that they did not want this to continue.

Mr Gau pointed out that Raicoast had a world class and state-of-the art wharf facilities built by MCC purposely for the Ramu Nickel project and the company must use this facility instead of the Lae wharf.

“Why constructing this international wharf here in Basamuk and then ship our resources out of Lae?” Mr Gau asked.

He said that memorandum of understanding on the project was yet to be reviewed and the issue would be raised at the appropriate time.

He said that the Ramu NiCo management Ltd had to work in partnership with all the stakeholders for all to benefit.


Filed under Financial returns, Papua New Guinea

Madang to block miner’s access to Lae

Dorothy Mark | The National

THE Madang provincial executive council is against the Chinese nickel and cobalt developer in Madang Ramu nickel export chromite using Lae port facilities in Morobe.

Deputy Governor Bob Wati said the provincial government discouraged the export of chromites through Lae port because it was generating revenue for Morobe province rather than Madang, the home of the project.

Wati said Ramu Agro was based in Madang but using Lae and giving revenue to Morobe.

A landowner at the Kurumbukari mine site, Thomas Monda, said Ramu Nickel was extracting chromite apart from nickel and cobalt as agreed to.

“Ramu NiCo signed the agreement to mine nickel and cobalt only and not chromite. And it must follow what the Madang provincial government decide on how to handle this product,” Monda said.

He said the poor condition of the Madang-Usino highway forced Ramu Nickel to use Lae port services.

Wati urged the national government to consider maintaining the highway thus allowing Ramu NiCo and Marengo to access port facilities in Madang to export the minerals.

“The two big mines are in Madang and all their revenue must be spent in this province. Madang people have full rights to enjoy the benefits that come out of these projects,” Wati said.

He said the Madang-Usino highway needed regular maintenance. He suggested that the Usino-Yal road was the alternative to the road problem.

Wati said the access road was flat all the way through Transgogol and to Madang.

He said it would be better for the national government to concentrate on developing that road instead of wasting millions every year to maintain the highway.

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Filed under Financial returns, Papua New Guinea