Tag Archives: Landholders

PNG New Ireland Deputy Governor Tells Social Media Mining Critics : Get Smart or Get Screwed

Pacific Mining Watch

 Papua New Guinea’s Deputy Governor of New Ireland, Sammy Missen, said today that it is actually amusing to see all the talk on social media about the failure of politicians to take action to make the mining sector work better, to the benefit of the people of the country.

Mr. Missen said “I find it amusing, because all these people are just missing the point. If they are so concerned about making changes in the Mining Act, then they should start supporting those who really want to make changes rather than just complaining all the time.”

The Deputy Governor said that there is one politician in the country who is serious about making the Mining Sector work to the advantage of the people. “That person is Sir Julius Chan. Sir Julius has been saying for more than ten years that the Mining Act should be changed. He has been saying that the current Mining Act takes huge wealth from the landowners and only gives them a few toea in return. Sir J says that the landowners should get automatic ownership in any mine. Landowners should never have to buy shares in a mine – they should get shares free, automatically. The gold and the copper and the nickel is in OUR ground.”

And, Mr. Missen said, “Sir J says that any company that wants to come in an operate a mine should be able to do so, but they will just be contractors. The owners of the mine will be the owners of the land – the State, the Province or the landowners, whoever owns the land where the mine is operating. And the benefits to the landowners will go up by five times from what they are now. Em tasol.”

Mr. Missen said that Sir Julius has been trying to make these changes in the Mining Act for years. “Almost three years ago Sir J introduced a Private Member’s Bill to Parliament to Revise the Mining Act. But the O’Neill Government did not act. And when the Marape Government came to power one of the first things it did was to invite a New Ireland Team to sit down with him and explain how the Mining Act should be revised. The Prime Minister said he would support those changes, but so far nothing has been done.”

Mr. Missen said criticism of the Mining Minister, the Hon. Johnson Tuke, is misplaced. “Minister Tuke fully supports the changes Sir Julius has proposed,” he said. “He supports giving ownership of the mines to the people who own the land, increasing royalties for the people and increasing all benefits coming from mining. But he can do nothing without the support of the Prime Minister.”

“And that is what people should understand,” said the Deputy Governor. “They should stop criticising everyone, and realise who their friends are. They should realise that they have an ally in Sir Julius. They have an ally in Minister Tuke. What the people need to do is to Get Smart. The need to telephone their MPs email their MPs, go on social media and tell their MPs they demand that they support the changes Sir Julius wants to make. The people need to make some NOISE! They need to demand a Revised Mining Act that will make the people rich from the wealth that is coming from THEIR ground.”

“And if their MPs do not listen to them,” Mr. Missen said, “if their MPs do not support giving the people a much larger share of the benefits, then the people need to make it very clear that those MPs will not get their votes in the next election. That is the only thing politicians understand. The People must tell their MPs one thing – if you refuse to support changes to the Mining Law that will benefit us, then you will no longer represent us. Em tasol!”

“And that,” Mr. Missen concluded, “is what people should be doing. They need to Get Smart. They need to realise who their friends are, and support them. If people just continue to moan and groan and refuse to work together, all our mines will end up just big holes in the ground, and all the wealth from them will be sitting in foreign bank accounts!”

In closing, the Deputy Governor said, “I can tell you one thing for sure. If we don’t Get Smart, we will surely Get Screwed!”

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Papua New Guinea Gold mine to become a top tier mining asset while landowners’ rights ignored

Financial Post

The most basic needs and rights of Papua New Guinea landowners are being completely disregarded while a Canadian and Chinese consortium talks up the potential of an internationally significant gold mine ahead of a PNG Government decision on the mine’s lease renewal.

Porgera Gold mine in remote Enga Province of Papua New Guinea expired last year and consortium made up of Canada’s Barrick Gold Corp and China’s Zijin Mining wants their lease to be extended for another 20 years.

A majority group of landowners, the Justice Foundation for Porgera headed up by the PNG Resource Owners Chairman Jonathan Paraia believes Barrick has no intention to deliver on promises it’s making to reduce environmental destruction or stop practices that damage local lives.

“Barrick has had 20 years to adequately deliver on its promises to resettle landowners, provide housing, education, clean drinking water so how can we for a moment believe that it will start honouring promises made under new contracts,” he said

“How many more independent reports detailing environmental and human rights abuses need to be published before the mine is held to account,” he said.

Mr Paraia understands Barrick needs this lease to be renewed so it can conclude a deal with Chinese state-owned entity Zijin.

“If the lease is renewed Barrick will not see it out, it intends to divest its share to its Chinese partner or someone else,” he said.

In 2015 Barrick Niugini officials told Landowners to make an offer for 95% of shares in Porgera mine but we could only make an offer for 10% so there was no sale. Instead in 2017 it sold half its shares to Zijin. We believe its goal is to sell its remaining shares once the lease is renewed.

The Chairman of the Justice Foundation for Porgera is also extremely concerned about a 70 million kina (almost $20M US) donation made to the Enga Provincial Government last week by the Chinese Government.

“The extremely generous donation while a decision on the mine is imminent is highly suspicious at best, and deserves a high level of scrutiny,” he said.

Jonathan Paraia also wants Barrick and elements of the PNG Government to stop cherry-picking supportive minority landowners with conflicts of interest and listen to the vast majority who want Barrick out.

“In the last fortnight, as part of Prime Minister James Marape delegation to Enga, Minister Johnson Tuke, Minister Bryan Kramar and Mineral Resources Authority head Jerry Garry unofficially visited the mine site and met with Barrick employees and contractors who claimed to be landowner representatives.

“Two of the guests, in particular, Dick Pundi a director of Ipili Porgera Investments Ltd (IPI) and Maso Mangape an employee of IPI claim to represent the interests of Landowners when IPI is a major service provider to Barrick, so whose interests are they serving?” he said.

The Justice Foundation for Porgera is aware the Prime Minister is adamant to take over the Porgera Gold Mine but other representatives of government are acting against the interest of the Prime Minister.

“The people of Porgera and the Justice Foundation for Porgera know the Prime Minister James Marape is listening to the people and has the best interests of our country at heart.

“We stand behind the Prime Minister and support him to say Barrick out, it’s time Papua New Guineans profited from Papua New Guinea’s valuable resources,” Mr Paraia said.

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ABG President refutes RTG claims

Autonomous Bougainville Government President John Momis.

One PNG | 22 January 2020

I refer to RTG Mining Inc.’s most recent announcement to the Australian Stock Exchange (ASX) dated 21st January 2020 whereby RTG deliberately made false claims to mislead their shareholders, the general public and the ASX.

Firstly, the Special Mining Lease Osikaiyang Landowners Association (SMLOLA) was an entity established under the controversial Bougainville Copper Limited (BCL) regime, which mistakenly placed landowners into individual blocks. This is in fact inconsistent with the traditional land inheritance system whereby land is owned by clans and families. The ABG has started the process to rectify this grave past mistake with the rejection of BCL’s licence over Panguna, thereby deeming all current mine affected landowner associations, including SMLOLA illegal, null and void.

So while it is true that RTG are the joint venture partner of SMLOLA as they have confirmed, I would like to confirm SMLOLA have no legal rights over Panguna and cannot enter into any legally binding agreements relating to Panguna. I am happy to advise however that the ABG will be assisting the true and genuine landowners to ensure proper social mapping is carried out in order to establish new legal landowner associations and entities.

Secondly, as per a media statement released from my Office on the 23rd December 2019, I would like to re-confirm and reiterate that the below RTG executives currently still have a travel ban on them, preventing them from entering Bougainville:

  1. Mr Michael J Carrick – Chairman of RTG Mining
  2. Ms Justine A Magee – CEO and Executive Director of RTG Mining
  3. Mr Mark Turner – COO of RTG Mining
  4. Mr Robert N Smith – Non-Executive Director of RTG Mining
  5. Mr Phillip C Lockyer – Non-Executive Director of RTG Mining

I also re-confirm and reiterate that this travel ban will not be uplifted under any circumstance. Whilst there was a travel ban into Papua New Guinea, it has recently been uplifted due to RTG’s lies and deceptions to the PNG government and immigration department about their purported involvement in the Mt Kare project – a project that the world knows it will not succeed. It is therefore concluded that RTG have taken advantage of the fact that both the PNG and ABG operate independently of each other and do not always consult each other on foreign companies, and that RTG’s interest in the Mt Kare project is merely an expensive ploy and deceptive tactic to be able to have a presence in PNG and access to their only real interest – the financial rewards of the Panguna pit.

RTG and their executives should be totally and utterly ashamed of themselves for their corrupt, disruptive and divisive behaviour. They have tried to take advantage of our landowners and people and have shown a complete lack of respect for government authorities. RTG have completely misled the markets for their own financial gain and convenience. The ABG will not rest until all RTG and their executives are banned for life from Bougainville and Papua New Guinea.

As it is my duty to protect the people of Bougainville from immoral charlatans, I appeal to the ASX, TSX and OTCQB, as your duty to protect current and potential shareholders, that you perform a full investigation into RTG Mining and their executives and their misconduct. My Government would be more than happy to assist you with any enquiries relating to RTG and their activities whilst in Bougainville.

For current and potential shareholders and financial markets, I hope that this clears up any confusion or misunderstanding on RTG Mining’s position in Papua New Guinea, Bougainville and Panguna.

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Second Phase Of Ramu Investigation To Be Done, Says Environment Minister

Melisha Yafoi | Post Courier | January 15, 2020

Minister for Environment and Conservation Wera Mori says they will leave no stone unturned with regards to the Basamuk slurry spillage last year.

He said they will be conducting more studies along the coastline in Madang to ensure that there is no environmental damage done following this slurry spill from the Ramu nickle and cobalt project.

He said they will be looking into all the drainage system into the Astrolabe Bay as far as Matukar on the North Coast all the way to Saidor in Rai Coast district of Madang province.

“We will also do strategic fishing right across the island up to Karkar and back and we will do a thematic mapping to show the distribution of the fish so we can contrast back to the permits,” he said.

“For the second phase, as soon as we get the funding for from Treasury we will roll it out but we want to do it this month.”

Mr Mori said CEPA is done with the reconnaissance stage.

“Now that we know what we want to arrive at, the next program will be designed to achieve that outcome and that’s what’s going to happen in the second phase.”

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Barrick Gold forges ahead on Papua New Guinea mine in face of local backlash

Jeff Lewis and Melanie Burton | Reuters | January 15, 2020

Barrick Gold Corp is set to elevate its troubled Papua New Guinea mine to its top-tier assets, despite landowner and government demands to cede a larger stake and deteriorating security at the joint venture with China’s Zijin Mining

With a 20-year lease renewal application in the balance, Barrick has faced backlash from Papua New Guinea (PNG) landowners and residents. Critics say the Porgera mine has polluted the water supply and created other environmental and social problems, with minimal economic returns for locals.

Seven people have died at the Porgera mine since September, including three so-called illegal miners last month in clashes that prompted Barrick’s local entity to appeal for government intervention.

Barrick hopes to boost the mine’s production by 18% or more. This previously unreported outlook raises the stakes for Prime Minister James Marape’s government, which has been seeking richer terms from miners and oil and gas producers.

The head of the country’s mining regulator said Barrick, the world’s No. 2 gold miner, is waiting to begin serious negotiations for permit renewal terms with the country’s executive council, led by Marape.

“If we can renew the permit on a reasonable basis, it stands up as a tier one asset,” Barrick Chief Executive Officer Mark Bristow told Reuters, referring to a large scale, long-life, high margin deposit.

PNG’s next steps with Barrick could influence billions of dollars of planned investment by global miners including Australia’s Newcrest Mining and St Barbara, who are eyeing new mines or mine extensions, but are wary of rising sovereign risk.

Miners, facing a dearth of new deposits and rising resource nationalism, may now have to cede greater rewards to other stakeholders.

“There will have to be equitable sharing of the spoils or these things won’t be developed or will be discontinued, ultimately,” said portfolio manager Simon Mawhinney, at Allan Gray in Sydney who is among Newcrest’s biggest investors.

Barrick’s tier-one designation, used describe a mine capable of producing 500,000 ounces of gold annually for at least 10 years at low cost, would place Porgera in league with Barrick’s crown jewel assets at a time major gold miners are desperate to replace shrinking reserves.

Barrick and Zijin’s combined 2018 production at Porgera was around 421,500 ounces.

ENVIRONMENTAL ISSUES

An exposed pipe that Barrick uses to dump its tailing into the environment at Porgera in Papua New Guinea and people desperate for an income pan for residual gold in the waste, seen in a photograph from 2017. Photo by Catherine Coumans

Barrick has broadened the role of its top China executive and former U.S. diplomat Woo Lee to handle day-to-day talks with the PNG government. It has pledged to relocate villagers whose land the mine has swallowed and study ways to improve management of mine waste currently dumped in rivers, Bristow said.

The moves, aimed at mollifying concerns over access to arable land and pollution of local waterways, may not be enough to satisfy landowners and the PNG government who want a larger equity stake.

Barrick and Zijin each own 47.5% of the mine, with the remaining 5% held by landowner group, Mineral Resources Enga.

Analysts have said Barrick could opt to put its stake on the block with other assets it has shed to meet a $1.5 billion divestment target. But Bristow played down a potential sale, saying Porgera fits Barrick’s investment criteria.

“It makes real returns, it creates value, it can survive the cyclicality of the gold industry and will make a significant contribution to our other stakeholders,” he said.

Barrick’s top executive has shown he is willing to make concessions to settle disputes. In October, Barrick agreed to sell Tanzania a 16% stake in each of its Bulyanhulu, North Mara and Buzwagi mines to resolve a long-running fight over taxes.

The Canadian miner may face added pressure to confront issues in PNG that run afoul of investor benchmarks on environmental, social and governance issues.

Citi, for example, has pledged not to support mining companies who use riverine tailings disposal which an NGO said in a 2019 report had polluted the rivers and denied locals reliable drinking sources.

Maso Mangape of the Porgera Land Owners Association said local residents had been squeezed out. “The mine site has now become a battlefield,” he said.

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Mori Reassures That Madang Waters Are Safe

Melisha Yafoi | Post Courier | January 15, 2020

Residents of Madang Province, especially those living along the coastline, can now eat fish and use the sea.

Minister for Environment and Conservation Wera Mori yesterday gave the clearance following an investigation done by the office of Conservation and Environment Protection Authority.

He said the waters are safe for use as elements tested were below detection limit. This was after the slurry spillage which has occurred in August last year.

Mr Mori said CEPA is contrasting and comparing the preliminary results of their investigation to the baseline studies that has been done in the past and will give what will be the allowable permits that was granted by environment and conservation for the operations of Ramu nickle project.

He said the reconnaissance has been done and the sampling has been taken especially on the quality of water, immediately around Basamuk as well as areas into the bay have shown that most of the results are below the detection limit.

“The elements that were tested included arsenic, cadmium, chromium, cobalt, copper, lead, manganese, mercury, nickel, selenium, silver and zinc.

The results returned showed that all of them were below what was allowable in the permits,” he said.

“Being a nickel mine, you would expect a very high elevated reading of nickel. What was allowed under the permit was 1000 parts per million of nickel,” he said.

“However, the test in the water quality taken in December taken by the independent team showed that it returned a range of results ranging from 0.5 parts per million to 17.2 parts per million which is far less than the expected permits allowable under the operations of the nickel mine.”

Mr Mori said the fish in the waters of Madang are safe and urged the people of people of Madang to go back and live their normal lives.

He said another part of the investigation will be looking at fish tissues however for fish tissues people must be able to understand and appreciate that the environment of which those marine organisms especially fish caught around waters concerned are located around an area of high geo tectonic activities.

“We are expected to find elevated readings of some of the elements that we know and are being testing but we are going to contrast that back once again to the allowable limits which are specified in the permits that were done before the permitting of the mine,” Mr Mori said.

“These results when ready will come in place and we will inform the people through parliament for the next month.”

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Justice Cannings starts human rights proceedings on Madang fish ban

The ban on fish sales was imposed after a spill at the MCC owned Basamuk refinery

The National aka The Loggers Times | January 13, 2020

MADANG resident judge Justice David Cannings has started a human rights proceeding on his own initiative to inquire into the fish ban in the province.

He summoned the provincial administrator and the managing director of the National Fisheries Authority to appear in the National Court on Jan 31.

This is to determine who imposed the ban, under what law it was imposed, were there any proven scientific reasons for continuing the ban, and will any person’s human rights be infringed by the continuation of the ban.

He said the purpose of the inquiry was to determine the validity of the ban and whether to lift the ban to restore normalcy in the survival routine of the coastal people of Madang.

People living in the coastal areas of Madang who rely on the sea for income and food are being affected by the ban imposed by the provincial government last October.

The provincial government banned the harvesting, selling, purchasing and production of marine resources from the waters of Madang after a reported slurry spill on Aug 24 at the Ramu NiCo Basamuk Refinery.

The provincial fisheries authority on Oct 16 declared the waters around the province and the fish safe.

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