Tag Archives: Lihir gold mine

Large-scale Mines and Local Politics: Between New Caledonia and Papua New Guinea

Download the chapters in PDF format

  1. Large-Scale Mines and Local‑Level Politics (PDF, 0.2MB) – Colin Filer and Pierre-Yves Le Meur 
  2. From Anticipation to Practice: Social and Economic Management of a Nickel Plant’s Establishment in New Caledonia’s North Province (PDF, 0.8MB) – Jean-Michel Sourisseau, Sonia Grochain and David Poithily 
  3. Social and Environmental Transformations in the Neighbourhood of a Nickel Mining Project: A Case Study from Northern New Caledonia (PDF, 1.7MB) – Matthias Kowasch 
  4. The Boakaine Mine in New Caledonia: A Local Development Issue? (PDF, 0.1MB) – Christine Demmer 
  5. Conflict and Agreement: The Politics of Nickel in Thio, New Caledonia (PDF, 0.1MB) – Pierre-Yves Le Meur 
  6. Contesting the Goro Nickel Mining Project, New Caledonia: Indigenous Rights, Sustainable Development and the Land Issue (PDF, 0.2MB) – Claire Levacher 
  7. Dissecting Corporate Community Development in the Large-Scale Melanesian Mining Sector (PDF, 0.4MB) – Glenn Banks, Dora Kuir-Ayius, David Kombako and Bill F. Sagir 
  8. Negotiating Community Support for Closure or Continuation of the Ok Tedi Mine in Papua New Guinea (PDF, 0.3MB) – Colin Filer and Phillipa Jenkins 
  9. Disconnected Development Worlds: Responsibility towards Local Communities in Papua New Guinea (PDF, 0.3MB) – John Burton and Joyce Onguglo 
  10. Gender Mainstreaming and Local Politics: Women, Women’s Associations and Mining in Lihir (PDF, 0.1MB) – Susan R. Hemer 
  11. Migrants, Labourers and Landowners at the Lihir Gold Mine, Papua New Guinea (PDF, 1.4MB) – Nicholas A. Bainton 
  12. Bougainville: Origins of the Conflict, and Debating the Future of Large-Scale Mining (PDF, 0.2MB) – Anthony J. Regan 
  13. Between New Caledonia and Papua New Guinea (PDF, 0.1MB) – Colin Filer and Pierre-Yves Le Meur 
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Filed under Environmental impact, Financial returns, Human rights, New Caledonia, Papua New Guinea

Mining industry to extract K11 billion from PNG in 2017

K11 billion mining revenue for 2017
Cedric Patjole | PNG Loop | October 4, 2017

K11 billion in mineral revenue is expected to be generated from both large and small scale mining in 2017.

This is based on gures reported from January to August, according to the Mineral Resources Authority (MRA).

The MRA says this revenue is the result of continued overall increases in mineral commodity prices, production and ore exports.

In a statement, the MRA says the estimated K11 billion revenue represents an increase of 13.4 percent against 2016 mineral revenue, underpinning an ongoing upward trend in mineral receipts which will boost the economy.

Based on gures from operating mines in the country, major projects expect to surpass results from 2016.

Ok Tedi Mine forecasts indicate a 2017 end of year outturn of an additional K700 million, with revenue potentially exceeding K2.7 billion.

Lihir is also turning in another solid performance and revenue forecasts indicate an increase in 2016 of around K200 million, exceeding K3.7 billion for the full year.

Ramu operations still continue to suffer from regulatory and compliance issues, however 2017 production has improved and could exceed 2016’s disruptive year by K300 million.

Revenue from the newly re-opened Kainantu mine is estimated at over K8 million from the first two shipments. Unfortunately the mine suffered a significant setback with illegal damage caused by landowners and this will take some months to recover from.

Simberi mine continues to generate revenue despite moving towards closure next year, coincident with the expiry of their mining lease.

Porgera and the alluvial sector are maintaining reasonably steady positions, while Hidden Valley mine has entered its temporary closure phase. Loss of revenue during this period will hopefully be made up by Kainantu once they return to production.

The Tolukuma mine remains problematic as they struggle with tenement and regulatory issues as well as funding, all of which is hindering a return to production under new owners, Asidokona.

Crater Mountain mine is also a icted by nancial di culties with the failure of a capital raising, but it is hoped that the board and management changes will nally see some positive results from this small operation shortly.

The MRA says while gold still represents an ‘unhealthy’ 68.75 percent of PNG mineral revenue, this percentage has been whittled away by the increase in copper, nickel and cobalt providing that widening of the mineral base’.

The gold price has again uctuated wildly with a recent spike on the back of international tensions surrounding North Korea’s nuclear ambitions, hitting over $USD1340 early in September, only to have now dropped back below $USD1290.

Copper, nickel and cobalt have also continued to rise erratically in recent months with copper hitting a 52 week high of $USD3.13/lb in September.

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Lihir to get Newcrest on target

An overall view of the Cadia mine in Orange, NSW.

Paul Garvey | The Australian | 25 July 2017

For much of its recent history, Newcrest Mining has been relying on its Cadia mine in NSW to make up for the problems at its Lihir mine in Papua New Guinea. Now, the roles are being reversed.

With Cadia out of action ­following an earthquake earlier this year, it was a record quarter from the oft-maligned Lihir that helped the Melbourne-based miner reach its annual production guidance.

Lihir produced 276,230 ounces of gold during the June quarter, up 20.3 per cent for the period in what was a record quarter for the operation.

The strong performance of Lihir — which had historically been the cause of several operational headaches during its early years under Newcrest ownership — helped make up for the sharp decrease in output at Cadia, which was hit by an earthquake in mid-April.

One of two panel caves at Cadia has since restarted production, with the outstanding panel scheduled to come back into operation during the ­September quarter.

The unexpected outage and the cost of remediation work at Cadia will likely weigh on Newcrest’s earnings when it posts it full-year result next month, with the costs associated with the ­incident likely to show up as an exceptional item in its accounts.

Newcrest managing director Sandeep Biswas said the record numbers out of Lihir reflected the “relentless drive for improvement” at the mine.

“Given the disruption to ­production at Cadia due to the seismic event, the overall ­performance this quarter was ­remarkable and demonstrates the resilience of Newcrest’s ­assets,” Mr Biswas said.

Newcrest’s total output for the quarter came in at 551,815 ounces of gold and 12,968 tonnes of ­copper, down from 598,602 ­ounces of gold and 22,074 tonnes of ­copper in the March quarter.

The outage at Cadia, which has historically been Newcrest’s highest-margin mine, meant the company’s all-in sustaining cost margin fell to $US360 an ounce during the June quarter, down from $US521 per ounce in the ­previous three months.

RBC Capital Markets analyst Paul Hissey said that while he ­expected the Cadia incident to affect Newcrest’s upcoming results, the company had been able to limit the damage with improved output from its other key mines.

“While events at Cadia appear largely beyond Newcrest’s control, this result shows that the company has been able to move other levers to broadly mitigate the impact,” he said.

Brokerage Goldman Sachs says the cost guidance in the full year results will be a key driver of sentiment towards Newcrest.

On the exploration front, Newcrest revealed it had applied for 40 exploration tenements in Ecuador, which is emerging as a new gold exploration hotspot. Newcrest has already entered Ecuador through its investment in SolGold, whose Cascabel copper-gold discovery is shaping up as particularly promising.

Newcrest spent another $US40 million on a further 4.5 per cent stake in SolGold during the quarter, taking its interest in the London and Canadian-listed group to 14.54 per cent.

Shares in Newcrest closed 18c, or 0.9 per cent, higher at $19.76.

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Compensation demand for Lihir airport land use

Landowners on Lihir in Papua New Guinea’s New Ireland province are threatening to close the island’s airport if their demand for compensation is not met.

Operation of the Lihir gold mine, which is run by Australian company Newcrest, are dependent on the small Kunaye airport, known also as Londolovit.

Nimarmar Local Level Government Council Media Officer, Tony Sapan said that landowners were frustrated that the mine had operated for over twenty years without any formal compensation for use of their land.

He said the landowners wanted $US900 million or $K3 billion, in compensation.

“They’ve played around with their calculations and they think that’s what the compensation outstanding is worth. And then they can come up with a future for the continued use of that land where the Kunaye airport stands,” said Tony Sapan.

Despite the existence of memorandums of agreement between the provincial government and various local stakeholders for operation of the mine, there is no formal agreement between landowners for use of the airport.

“The airport physically supplies the mine. And there is no such agreement. That is what the landowners are up in arms about,” he said.

The landowners earlier gave notice of their demands in April and have been in discussions with the mine owners, the government and the Mineral Resources Authority.

According to Mr Sapan, the landowners were planning for a meeting next Wednesday, where it was hoped a representative of the mining company could be present for discusssions.

He said the landowners were trying to exhaust negotiation options before carrying out their threat.

“At the last resort, I’m sure, they would want to do that,” Mr Sapan explained.

“But they are talking to the mine, they are talking to the government, they are talking to the Mineral Resources Authority that handles mines in Papua New Guinea. So they are trying their best to do this under the law.”

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Landowners shutdown Lihir airport

Gregory Moses | NBC News via PNGFacts | 29 May 2017

Landowners on Lihir, have threaten to shut down the Londolovit Airport today, over outstanding compensation demand of about K3bn, for more than 20 years.

Nimarmar Local Level Government Council Media Officer Tony Sapan, says the closure will affect the Lihir Mine’s Fly In Fly Out services, medicinal supply to the island, businesses, banks and emergencies if they occur during the closure.

“Ol papa giraun ting olsem company has used it long enough and they need to be compensated for it.

“Imas igat compensation agreement. The company has forgone meetings ol ibin plenim long toktok long dispela compensation.

“Na nau, failure blo ol ibai affectim mine, na the whole Lihir community.

“Ol (landowners) ibai planim gorgor long airport tomorrow.”(Monday 29.05)

Mr Sapan also says the landowners have set the April 15 as the deadline to talk about their compensation demand with the company, but this has lapsed and they now have opted to shut down the airport for an indefinite period.

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New Ireland refuses to sign Simberi MOA approved by NEC

State Solicitor’s office accused of dishonesty 

Sharon Lowa | Post Courier | May 22, 2017

The New Ireland provincial government has refused to sign the Simberi Gold Mine memorandum of agreement recently approved by the National Executive Council (NEC) in April.

Deputy governor and chairman for natural resources in the provincial executive council Ambrose Silul said they are sick and tired of being misled by the state team negotiating the new MoA for both Simberi and Lihir Gold Mines.

Mr Silul insists that the state keep its word, and until it does, the New Ireland government will not sign any new MoA.

The New Ireland team had been renegotiating the Simberi MoA for over four years and a provisional MoA had been agreed in 2013, but that it was conditional on approval by the PEC.

“Our team wrote to the state team and Mineral Resources Authority (MRA) on October 6, 2013 that the draft MoA must include the provisions approved by the New Ireland PEC on May 21, 2013.

“That includes increasing the rate of royalties from two percent (FOB) annual revenues to 10 percent, as well as similar increases in the special support grant and tax credit scheme,” Mr Silul said.

Mr Silul further stated that the state solicitor’s office agreed that the changes the New Ireland government wanted made to the MoA would be included in the draft to go to the NEC.

He said that in a meeting in April 2015 in Kavieng, the state solicitor agreed they would include New Ireland’s provisions in both the Lihir and Simberi MoAs and allow the NEC to make a final decision.

“All we are asking is that NEC – and not the state bureaucrats – decide on the merits of our suggestions. Instead, we have a bunch of bureaucrats making decisions that should be made by NEC.”

“We will not accept this dishonesty on the part of the state team,” Mr Silul said.

Mr Silul is calling on the mining minister to conduct an immediate investigation into this affair.

The MRA mining coordinators and the state solicitor’s office deliberately and willfully misled the NEC by submitting an MoA that did not include the provisions they promised would be included.

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Newcrest begins exploration on Tatau island

The National aka The Loggers Times | May 2, 2017

THE Newcrest Mining Limited is conducting exploration on Tatau Island in New Ireland for copper and gold deposits.
In its recently released quarterly report, it said exploration had begun on Tatau Island as part of Newcrest’s option and farm-in agreement with St Barbara Limited to look for copper-gold porphyry-related deposits.
Tatau is an island in the Tabar Group to the east of New Ireland and about a mile south of Simberi Island.
According to Newcrest, target generation exploration is presently being conducted over several priority porphyry target areas to define future drill targets.
In a recent interview, New Ireland Provincial Government Mining, Lands and Commerce director Brian Hosea told The National that the provincial government was in consultation with Mineral Resources Authority regarding the project.
“We are in consultation with MRA. That is still on the drawing board,” Hosea said.
“We need to have things in place like briefing the Governor (to see) where we want to go. We also need to have all agreements signed – landowner agreements, memorandum of agreements, integrated benefit packages to do with the project.”
The province has Newcrest’s Lihir gold mining project and St Barbara’s Simberi operation. Nautilus Minerals is also developing the first seabed mining project in the province.
Hosea had previously said NIPG had been working closely with local landowners as the province will now play host to three mining projects.
He said the provincial government is aware of the importance of local participation in the mining projects.

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