Tag Archives: Newcrest Mining

Meeting to resolve Fiji row over mineral prospecting licence

namosi protest

Radio New Zealand

Fiji’s Prime Minister, Frank Bainimarama, has called an urgent meeting to resolve a row over a mineral prospecting license.

Namosi Joint Venture was awarded the license to search for minerals in the Namosi highlands, west of Suva.

Mr Bainimarama says he was told by the Minerals Resource Department that everyone had been consulted.

But a landowner in Waivaka Village, Pedro Leveni, told Bridget Grace they did not give approval.

PL: The Namosi Joint Venture is the join of three companies, two from Japan, Nittetsu Mining from Japan and Newcrest Mining from Australia joined together and they call themselves Namosi Joint Venture, that’s the company that is exploring minerals in our land.  They didn’t renew the SPL license in the last decade, and the last renewal is on the 15th of March this year and matagali, matagali is one of the land that is being targeted by this company, there is a lot of mineralisation in my land.  And seven matagalis discovered that this company has been destroying our environment, damaging our forest, and the flora and fauna, damaging it without good payment.  And that’s why we didn’t want to renew the SPL license.  At the end of the day what we have been understanding that, doing exploration for the last four decades, at the end of the day they will mine our land.  But we don’t want mining, that’s why we don’t want to renew the exploration license.

BG: Your village was consulted about the license and you said no?

PL: When the license expired in March 15th this year, the Minerals Department came around asking the landowners about their view, and seven matagalis that are involved in this exploration, the company’s targeting their land.  They don’t want, we don’t want the license to be renewed because of that reason, damaging the ecosystem, damaging the rivers, damaging the flora and fauna.  At the end of the day we are looking, at the end of the day exploration has been done where for the last four decades, we didn’t understand this company would mine our place, but Namosi is very small and we have heard from the geologists about the deposit underneath our land is the biggest in the Southern Hemisphere.  Compared to the deposit on the surface, they are totally different.  The mine on our land will be going nowhere and our land would be like a desert.  I think you’ve been seeing good vegetation of Fiji especially in Namosi, in the rainforest.  If they mine this place there will be a big pool of water with nothing growing.  And we are thinking of our future generations, where will they survive.  Because mining will just go on for 50, 60 years, after the mining what will our trees and deserts survive.  That’s why we do not renew this license.

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Filed under Environmental impact, Exploration, Fiji

Fiji PM calls for urgent meeting regarding NJV explorations

namosi exploration

 Aliki Bia | Fiji Broadcasting Corporation

Prime Minister Voreqe Bainimarama has called on the Mineral Resource Department and the Minister for Lands Mereseini Vuniwaqa to resolve the row over the granting of the special prospecting license to Namosi Joint Venture to explore minerals in the Namosi highlands.

During a talanoa session at Waivaka Village in Namosi yesterday, Prime Minister Voreqe Bainimarama heard that majority of the landowners there did not agree to the granting of exploration license to the Namosi Joint Venture.

Bainimarama says the discussions he had with the Minerals Resource Department is that everyone had been consulted and he was not aware that the exploration was destroying the environment especially the rivers.

With this concern, Bainimarama has called for an urgent meeting to resolve the matter.

He has also assured the people of Namosi that government will not allow any exploration to harm their environment.

The Landowners claim that those who were consulted prior to the extension of license are not registered to the village in the Vola Ni Kawa Bula.

The Prime Minister did not indicate when the urgent meeting will take place.

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Fatalities and mechanical failures give Newcrest a poor start to the year


Newcrest Mining has revealed an underwhelming set of production numbers for the September quarter. Photo: Bloomberg

Peter Ker | Sydney Morning Herald

Newcrest Mining has made a disappointing start to the 2016 financial year, with two workplace fatalities, mechanical failures at its two most important mines and below-par production rates.

The deaths of workers at the Cadia Ridgeway mine in NSW and the Hidden Valley project in Papua New Guinea have continued a bad period for safety in Australian mines.

The fatalities prompted Newcrest to shut the two operations for 11 and 33 days respectively, meaning the company fell behind on its annual production target.

Newcrest plans to produce between 2.4 million and 2.6 million ounces of gold in the 2016 financial year, and will need to improve on the 583,745 ounces it produced in the September quarter if it is to achieve that target.

Despite being behind the pace, Newcrest maintained its full-year production guidance target for now.

Lower production saw all-in sustaining costs rise to $1088 an ounce during the quarter, well above the $941 an ounce the company achieved last financial year.

Investors reacted savagely to the lacklustre quarterly on Tuesday, sending Newcrest shares down by 5 per cent.

Fatalities aside, Deutsche analyst Brett McKay said the biggest focus for shareholders was news of a failure in one of the two semi-autogenous grinding (SAG) mills at Newcrest’s flagship Cadia mine on Saturday.

The SAG mills use steel balls to grind ores into smaller particles and are a crucial part of the processing phase.

Newcrest said the outage appears to be linked to the mill’s motor, and the issue is yet to be fixed.

Mr McKay said uncertainty over how long the mill would be out of action was troubling shareholders.

“The fact they have not put a time on that outage is concerning,” he said.

The company’s second most important asset, the Lihir mine in PNG, also suffered failures in the conveying and milling circuits.

Those failures are familiar to long suffering Newcrest shareholders, and come despite chief executive Sandeep Biswas staking his reputation on his ability to fix Lihir.

But Mr Biswas’ focus was on the tragic fatalities.

“We are deeply saddened that two of our colleagues were fatally injured during the quarter … I have instigated a full and detailed review of all aspects of safety management at all our sites with a particular focus on high-risk tasks,” he said.

Newcrest shareholders will be keen for an update on the Cadia SAG mill at the company’s annual meeting next week.

The miner will be hoping to avoid a second “strike” against its remuneration structure at the meeting, after more than 44 per cent of shareholders rejected the remuneration report at last year’s meeting.

A motion to spill the Newcrest board could follow if more than 25 per cent of shareholders vote against the remuneration report next week.

But influential proxy advisers ISS Governance and CGI Glass Lewis have both urged shareholders to avoid a board spill and approve the remuneration report, with CGI saying a spill would not be in the best interests of shareholders.

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Filed under Financial returns, Papua New Guinea

Govt undermining Wafi-Golpu feasibility studies claims governor

While New Ireland Governor Julius Chan is attacking Newcrest greed his Morobe counterpart, Governor Kelly Naruhas shares no such concerns, happily promoting the Australian company as ‘world class’… 

MP condemns decision
The National aka The Loggers Times
MOROBE Governor Kelly Naruhas condemned the Government decision to dissolve the special land titles commission to complete the determination of land boundaries and ownerships in the Wafi-Golpu project.
But despite the decision, he said the provincial government and the district development authority would support the three landowner associations.
Naru said the Government’s decision affected the Morobe Mining Joint Ventures’ confidence to complete feasibility studies.
“Government needs to re-examine its decision and re-establish the SLTC to complete court determination process of land boundaries and ownership,” Naru said.
“The SLTC must come back and finish the land boundaries court determination.”
Naru said “we can bring in world class mining developers but land boundary disputes and ownership rights still exist which SLTC are subjected to settle”.
Babuaf Landowner Association president Thomas Nen had raised his concern during presentation of two vehicles and opening of community hall at Finnchif on Saturday.
Huon Gulf MP Ross Seymour, DDA adviser Robin Bazinuc and members presented the vehicle while the MMJV built the hall.
Naru commended MMJV for providing such infrastructures in advance.
He told the landowner associations to form an umbrella company to work with government and investors.
Hengabu and Yanta landowners associations have also raised similar concerns.

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Filed under Exploration, Mine construction, Papua New Guinea

Julius Chan demands greater benefits from mining for people

Newcrest making K1 billion a year while the people of New Ireland get just 3% claims Chan…

But why didn’t Chan address the situation when he was Prime Minister?

Why is his son, New Irelander and current Mining Minister, Byron Chan so silent?

Maybe these politicians are just as greedy, narrow minded and selfish as the mining companies?

julius chan

Julius Chan demands greater benefits from mining for people

Post Courier

NEW Ireland Governor Sir Julius Chan has issued a statement concerning the benefits received from the Lihir Gold Mine by the company Newcrest Mining, the State and the people of New Ireland.

“Recently Newcrest issued a press release saying the mine had paid K376 million in royalties over a ten year period.

‘It seems they think that is a lot of money.

“But when you look at it the total only represents K37.6m each year that the people of New Ireland have received in royalties.

“Compare that to what Newcrest and the National Government have received,” said Sir Julias.

Newcrest has actually only operated the mine for five years since late 2010.  However, in that five years, according to Newcrest’s own annual reports, the difference between the cost of production and the sale price of gold means they have made nearly K5 billion in profit.

“So during  the time that the people of New Ireland were receiving only K37.6m per year in royalties, Newcrest was making nearly a billion kina per year.  That is over twenty-five times as much as the people of New Ireland,” Sir Julias said.

Sir Julius also said that during the same time “the National Government has been making over K300 million per year in various taxes, mining levies and other fees.

“This means National Government is making nearly ten times as much as the people from whom the wealth actually comes.

“So when you look at it, between the company and the National Government they are making about K1.3 billion per year, while the province is only receiving K37.6 million in royalties and a pittance in special support grant.

“So the people of New Ireland are only getting about 3% of the benefits coming from their own ground.  This is unacceptable.”

“The situation must change, we need to increase royalties to be consistent with international practice.

“Royalties should be set at 10% of annual revenues.  Special Support Grant should be increased from the current ridiculous level of ¼ of 1% to 10%.  The same with the tax credit scheme, increase it from ¾ of 1% of assessable income to 10% of assessable income.”

Sir Julius concluded by saying that the people of Papua New Guinea should refuse to allow any further exploitation of their natural resources until the National Government and the mining companies are willing to direct the lion’s share of the benefits to the people from whose land the wealth comes.


Filed under Financial returns, Human rights, Papua New Guinea

Newcrest admits non-compliance revealed in Lihir water audit

Newcrest accepts non-compliance but fails to reveal details of its extent or impacts…

Mine to work with audit team

The National aka The Loggers Times

Lihir Gold Ltd says it will work with the government in implementing recommendations of government sanctioned environmental audit into the extraction of water at Londolovit River on Lihir Island that it extracts.

The audit had confirmed that LGL has complied with its water extraction permit conditions for the overwhelming majority of the period and identified some brief periods of non-compliance.

Australia’s North Victorian based company Moroka Pty Ltd carried out the environmental audit of the Londolovit River between May and August after it been commissioned to do so by Conservation and Environment Protection Authority (CEPA) of the Government.

“LGL acknowledges these and while the periods and levels of non-compliance were relatively minor, we will work with the Government and local stakeholders to implement all of the changes recommended in the report” a statement released by the company said. The LGL said it acknowledged those brief periods of non-compliance and supported the recommendation to work with CEPA to agree a longer term water supply strategy to ensure this does not happen in the future.

“LGL has introduced innovative measures to manage the use of water during the current extended dry spell at Lihir,” the company said.

“ We are monitoring water extracted from Londo River supplies the mining operation and others.”

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Filed under Environmental impact, Papua New Guinea

Sir Julius: Newcrest claims not true

As usual it is very hard to know if Chan is being sincere or just trying to save his own backside…

Julius Chan

Post Courier

Sir Julius Chan, Governor of New Ireland Province, has refuted claims by Newcrest Mining concerning the amount of royalties paid to the Provincial Government.

He said that for almost half that period, royalties were paid by the previous owner of the mine, Lihir Gold Limited contradicting the claims by Newcrest.

He said the media reports by Newcrest Mining gives the impression that huge sums have gone to the province, when in fact this is not the case.

He explained that it was not until late 2010, when Newcrest finalised purchase of the mine, that Newcrest began paying royalties.

“The total return of the mine to both the company and the National Government is between five and ten times what comes to the province.

“Between the two, they make literally billions of kina per year, while the province, the LLG and the landowners combined make around K40m. There is something wrong here. It is true that the mine under both LGL and Newcrest has paid K374m in royalties over the past ten years. Of this amount, half has gone to the landowners and the Local Level Government. The other half has come to the Provincial Government,” Sir Julius said.

However, under a PEC decision on the 50 per cent received by the Provincial Government, only 10 per cent is retained as 30 per cent is given to the Namatanai District, where the mine is located and 10 per cent to Kavieng District.

According to this calculation, the provincial government has only received directly about K37 million over the last ten years.

“The Provincial Government came to an agreement with the two Districts that royalty funds should be used for the ‘benefit of all New Irelanders.”


Filed under Financial returns, Papua New Guinea