Tag Archives: Ok Tedi

Fly River affects Ok Tedi mine

Shirley Mauludu | The National aka The Loggers Times | January 3, 2020

THE low water level in the Fly River in Western has forced Ok Tedi Mining Ltd (OTML) to reduce its production by 50 per cent, according to chief executive and managing director Peter Graham.

Graham told The National yesterday that water level was low last month (December), thus, impacting the mine’s operations.

“During December, the water level in the Fly River has been insufficient to allow regular passage of Ok Tedi’s feeder vessels loaded with concentrate out of Kiunga and back from Port Moresby with fuel and food for all but the last days of the year,” he said.

Graham said four vessels were recently cleared but one loaded remained stuck in the shallows.

“As a consequence, Ok Tedi has limited stocks of fuel, diesel, explosives and other vital materials and concentrate storage in Kiunga is approaching capacity,” he said.

“To extend available stocks of vital materials, mine production has been reduced by 50 per cent and some contract personnel have been released.

“In the past week, some fuel and food has been received lifting stocks to 20-30 days at current reduced consumption rates.

“For the community, food stocks are adequate through the supermarkets and an allocation of diesel made available for rationing.”

Graham further noted that the weather forecast was for above average rainfall this month and next. However, he said: “Once river levels rise and sustain, recovery to full production will likely take several weeks.”

Meanwhile, in a recent statement regarding release of the final dividend of K100 million paid to shareholders, OTML chairman Sir Moi Avei said:

“This result has been achieved despite several extended periods of dry weather, including the current month (Dec), during which shipments of supplies in and product out have been severely constrained.”

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Shining a light on corporate human rights abuses in the Pacific

Business & Human Rights Resource Centre’s Amy Sinclair introduces a new portal that focuses attention on a resource-rich area remote from the rest of the world

Amy Sinclair | Ethical Corp | December 9, 2019

In recent months, damaging spills caused by foreign miners operating in the Solomon Islands and Papua New Guinea have wreaked havoc with the safety and livelihoods of coastal communities.

At the same time, with the independence referendum under way in the Bougainville region of Papua New Guinea, mining companies are jostling for new licenses. This is in a region where tensions over the infamous Panguna mine sparked a bloody decade-long civil war in the 1990s. Memories fade fast, particularly when there are profits to be made.

The Pacific region is intensely resource-rich, but with great distances separating Pacific nations – not only from one another, but also from much of the rest of the world – human rights abuses by companies have too often occurred in the shadows.

Mining companies are seeking licences amid Bougainville’s referendum for independence. (Credit: Melvin Levongo/Reuters)

With inward-investment growing, Pacific communities face increasing challenges to fair and informed engagement and run the risk of exposure to higher levels of abuse and environmental harm by global companies. This is particularly true for those on the frontline of deforestation, irresponsible mining, fishing, tourism and seabed exploitation.

Local activists and communities fighting these abuses are hindered by being far away from foreign company headquarters located in Canada, Australia or China. Distances may be great, but Pacific voices deserve to be heard. With greater visibility on global platforms, communities and advocates can be supported in their efforts to achieve stable, sustainable growth that will protect future generations.

The need for this increased visibility is great. Business-related human rights harms in the Pacific are, increasingly, being documented. Yet severe human rights abuses, including forced labour, slavery, human trafficking and child labour, persist.

In June, the Business & Human Rights Resource Centre (BHRRC) published a report on modern slavery in the Pacific tuna sector, which provides almost 60% of the world’s tuna catch in a growing industry currently worth $22 billion. The report surveyed 35 canned tuna companies and supermarkets, representing 80 of the world’s largest retail canned tuna brands, and found that, outside a small cluster of leading companies, the sector is not translating human rights policies into practice. Without urgent and decisive action in the Pacific fishing sector, and by those sourcing from it, there is a danger that company policy will provide a fig-leaf for abuse, while slavery continues unabated.

Deep-dives such as this yield invaluable insights into sector-specific questions, but more is required. There is a pressing need to raise awareness of the human rights responsibilities of companies operating in all sectors in the Pacific, and to bring to light the true nature and scale of human rights abuses being committed across the region.

The Solomon Islands, and Fiji in particular, are experiencing high levels of mining activity, and there is a danger that the mistakes of the past – seen in Papua New Guinea with the abuses and environmental degradation at Panguna, Ok Tedi and Porgera – will be replicated there and beyond. Community consultation must form the cornerstone of human rights due diligence by companies seeking to invest in the region, and profits should be fairly shared.

The Pacific tuna sector provides almost 60% of the world’s tuna catch and is worth $22bn. (Credit: Erik de Castro/Reuters)

 Fortunately, a nascent business and human rights movement is emerging in the Pacific. The first-ever dedicated Pacific session, Advancing the Business and Human Rights Agenda in the Pacific, was held during the annual UN Forum on Business and Human Rights in Geneva last month, a testament to the progress that has been made in the region recently.

To support and chart the growth of this emerging movement, BHRRC has launched a new web portal dedicated to the region. The Pacific portal brings the broad range of local business and human rights issues into sharper focus and amplifies local and community voices.

It’s hoped the portal will be a crucial tool for human rights and environmental rights advocates, both in civil society and in businesses themselves, seeking to prevent abuse and improve company human rights practices in the region. It will do this by highlighting research on key issues, identifying allegations of business-related abuse and calling attention to emerging cases.

Stability in the Pacific region requires urgent action to ensure human rights are embedded in investments from inception. Without regard for international rules requiring respect for human rights in business, the sustainability of life in the Pacific for future generations is under threat.

Efforts like this web portal are needed to shine a light into the shadows and improve awareness of Pacific business and human rights issues on the global stage.

To visit BHRRC’s Pacific portal click here: Pacific Business & Human Rights

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PNG’s Ok Tedi mine disaster money locked in new legal fight

Alex Maun, a landowner who sued BHP in the 1990s, in the dying forest near the Ok Tedi River. CREDIT: ALEX DE LA RUE

Nick Toscano | Sydney Morning Herald | November 3, 2019

A fresh legal dispute has erupted over control of a fund set up to benefit the tens of thousands of villagers affected by mining giant BHP’s environmental disaster at the Ok Tedi mine in Papua New Guinea more than 20 years ago.

The Ok Tedi mine – which BHP co-owned with the PNG government until selling its stake in 2002 – discharged tens of millions of tonnes of mine waste into the local river system during the 1980s and 1990s, contaminating fish and trees and devastating the area’s economy.

A special trust account was created by the mine owners in the late 1990s to accumulate dividends from the Ok Tedi copper and gold mine’s ongoing profits to compensate the 30,000 landowners of the worst-affected communities living downstream of the mine.

Estimated to contain 250 million kina ($106 million), the Western Province People’s Dividend Trust Fund had been managed by PNG government officials until September last year when the Ok Tedi and Fly River Development Foundation, a regional representative group, raised allegations the funds were being “misapplied … causing a diminishment” and won a legal bid to become its trustees.

The newly-formed foundation headed by local leaders claiming to represent 30,000 residents of the villages most immediately impacted by the Ok Tedi mine disaster obtained National Court orders to replace the government as trustees.

But control of the trust is again under a cloud with the PNG government, represented by prominent Australian law firm Corrs Chambers Westgarth, last month obtaining further court orders blocking the ANZ Bank from dispensing the funds.

The Ok Tedi and Fly River Development Foundation has applied to have the injunction set aside, alleging an abuse of process, including claims the PNG government is a vexatious litigant and that Corrs Chambers Westgarth had failed to obtain the necessary certification with PNG’s Investment Promotion Authority to be practising in PNG. The case will be heard in the country’s National Court in December.

A spokesman for Corrs Chambers Westgarth said the firm was “not in a position to comment” as the matter was before the court.

An ANZ spokesman said it would be inappropriate to comment as the matter was before the courts in Papua New Guinea.

BHP, Australia’s biggest mining company, completed its withdrawal from the Ok Tedi mine in 2002, transferring its 52 per cent equity stake to a development fund designed to operate for the benefit of PNG residents, known as the PNG Sustainable Development Program Limited. The fund was to use dividend payments from BHP’s transferred shareholding in Ok Tedi to finance long-term sustainable development projects in PNG, particularly the western province.

The miner also reached an out-of-court settlement with 30,000 landowners represented by Slater & Gordon in a landmark lawsuit in Victoria’s Supreme Court in 1996, which included $110 million in compensation for the affected villagers.

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AG Tasked To Look Into Use Of Ok Tedi Funds

A mother and her malnourished child, Bimadbn Village, Morehead, Western Province, Papua New Guinea. Photo: Penny Johnson

Gorethy Kenneth | Post Courier |  August 30, 2019

Prime Minister James Marape has instructed the deputy Prime Minister and Attorney General Davies Steven to seek a restraining order to protect more than K500 million of OK Tedi CMCA and non CMCA funds from being abused.

North Fly MP James Donald took the PM to task to explain why there were a certain group of people now drawing down K58 million from the CMCA funds parked at a commercial bank in Port Moresby.

An irate PM Marape demanded the inquiry report done by former prime minister Peter O’Neill to be released.

“It saddens me that we continue to have people with interest outside of the main stream, outside of everyone, to use institutions of our democracy to access funds run-ning in and out of Vulupindi Haus, running in and out of Court Houses and access funds under the auspices or pretext of being better for our people.

Western Province like many other provinces with entitlements from resources continues to remain backward in so far as development indexes and indicators are concerned,” Mr Marape said.

“Let me call on the Attorney General and our Deputy Prime Minister to firstly furnish to us the enquiry that was made on the use of CMCA and non CMCA earlier, this Parliament deserves to have the benefit of that report.

“Let me advise the leaders of Western Province, that I also ask the State Solicitor to intervene and that this matter is put on hold until we ascertain exactly what is being pursued or what is being accessed and whether they are in compliance with the Trust Instruments we have and whether they have legal entitlements to those funds,” he said.

“As we speak, it is immoral to have Western Province still backward over K500million in funds that are entitled for development sitting in banks and government institutions, legal firms, many of the so called educated people, we are fighting over money that is meant to fix Western Province.

“They have their own funds sitting there, yet educated Western Provinces with a combination of other Papua New Guineans over time have been feasting on this funds outside of what these funds are meant for.

“It is about time we put to shame people who continue to access these funds and I propose AG to establish a pathway, with legitimate bodies on the ground like government, districts and CMCA agencies on the ground so that Daru town does not have black buckets anymore.

“The National Government will add in their ex-gratia component and their own funds and we will work in partnership to ensure that this province is moving on the right spot.

“Let’s find a way to help the Western Province leaders and the people,” he said.

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Landowners Want 100 Per Cent Ownership of Porgera Mine

Zombi Kep | Post Courier | August 5, 2019

Majority landowner representatives are calling on Prime Minister James Marape to extend his ‘Take Back PNG’ campaign by taking back the Porgera gold mine from operator Barrick Niugini Limited (BNL).

Acting through the Justice Foundation of Porgera, 18 out of 24 landowner agents who signed the MOA in 1969, are urging the PM to act on his word by taking back Porgera gold mine from Barrick.

In a recent press conference in Port Moresby, chairman of Justice Foundation for Porgera Mr Jonathan Paraia, claiming to speak for the 18 landowner agents, declared their intention to take 100 per cent ownership.

“Enga must own the land which was given to us by God and the 95 per cent that is leaving the country for Canada must stay back in the country,” said Mr Paraia.

“We own all the resources in the country, yet all the resources are leaving the country.”

He said if the profits were retained, a lot of people from Porgera, Enga and PNG as a whole will be employed and there will be surplus of money owing into the country.

“That’s why when the mining lease expires, we are putting our resolution up to government not to renew the agreement.”

He said according to the Mining Act, anything six foot underground belongs to the State and the State should have full ownership of the mine and its profits.

But he claims the ownership had somehow passed onto foreigners. “Over the last 30 years, 95 per cent is owned by Barrick and nothing is coming back to us, even the country is missing out on it,” said Paraia.

“But now as the mining lease is expiring, PNG must own this mine.”

He said that just like the government taking over OK Tedi, they want to take ownership of the Porgera mine to resettle the landowners affected, pay proper compensation, and deliver proper services.

“The government must allow us to take over the mine so that all the damages that were done to Porgera will be fixed by ourselves,” he said.

“The things that Barrick has failed to do today; we want to do ourselves.”

He stressed that the mine will continue to operate just as it is but the ownership needs to change. “All the workers will be intact and all contractors will remain but the ownership must change.”

Former Laigaip Porgera MP Nickson Mangape who is also one of the 18 landowner agents, brushed aside comments made on social media that they are incapable of owning the mine.

“You people kept asking who will take over Porgera gold mine and saying that it’s too complicated on Facebook,” explained Mr Mangape.

“You look at OK Tedi, the government of the day took over. This is the same thing that we want with Porgera.”

He said there is no difference.

“About 33 per cent went to landowners (Ok Tedi) and 67 per cent went to the government, the same will happen with Porgera.

Enough is enough,” he said.

Meantime the National Court in Waigani ruled last week Friday that BNL and Mineral Resources Enga (PJV) will continue mining after the August 16 expiry of the mine’s SML.

Following the ruling, BNL president and chief executive officer Mark Bristow said a total of K20 million in royalties for landowners are withheld as a result of ongoing legacy issues.

Mr Bristow also said the company has funded a lot of training initiatives and to date, the total value of K544 million including donations has provided schools, health services, water, power, bridges and roads in support with the local government to change the lives of the people for the better.

He said the company has also made a commitment following its recent meeting with Prime Minister James Marape that it would invest in the Paiam hospital to get it operational again.

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Tuke yet to receive mining audit report

The National aka The Loggers Times | July 4, 2019

MINING Minister Johnson Tuke says a report on an internal audit into one of the trust accounts that keeps the funds from the proceeds of the Ok Tedi mine for the people of Western is yet to be furnished to his office.

Tuke said these in response to questions from Western Governor Taboi Awi Yoto in Parliament yesterday.

Tuke said the previous government under the leadership of Peter O’Neill had put a moratorium on one of the trust accounts to undertake an audit after allegations of corruption and misuse of funds.

“There are two trust accounts – the Community Mine Continuation Agreement (CMCA) Trust Account and non-CMCA,” he said.

“Under CMCA 12 projects have been identified and they were being done. It comes under Ok Tedi Development Foundation (OTDF).

“The other one is non-CMCA and projects were endorsed before I became the minister.”

Tuke said there were 148 projects endorsed and funded under non-CMCA Trust.

“These projects were done already but we don’t know, whether these projects were actually delivered on the ground or not.

“For this reason, the previous government authorised a project audit to be done so that the people would know whether these funds were actually used to deliver projects and programmes to benefit the people of Western or not,” he said.

“The audit report was done already but I have yet to receive it.”

Tuke said once he received the report he would act on its recommendations with the relevant authorities.

He also clarified that the balance of that funds under the non-CMCA Trust would be given to the Mineral Resource Development Company (MRDC) as per a Cabinet decision.

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No tangible development in Western despite decades of mining

A father holds his malnourished son in Western Province, Papua New Guinea. Photo: Sally Lloyd

Marape Tells Awi Yoto To Improve Western

Leiao Gerega  | Post Courier | June 24, 2019

For almost 38 years Western province has seen no tangible development taking place despite helping the country generate millions in kina from the Tabubil mine.

The province remains one of the least developed in the country with low health status and lack of basic delivery of service to its people.

Prime Minister James Marape who visited the province on Friday to launch both the provincial and district five year development plans was implored by Governor Taboi Awi Yoto to look at the provinces needs which include;

  • Creation of one or two electorate added to the province’s current three electorates;
  • Uplift moratorium on the Province’s need to recruit new public servants;
  • Fix issues with the province’s dividend trust account through former operations with Ok-Tedi;
  • Find common ground on issues regarding WP’s major development program called the PNG sustainable development program;
  • Building of a major port to export its resources;
  • Request Ok-Tedi and Porgera to compensate middle and south Fly over mining waste pollution;
  • Current 33 percent shares in Ok-Tedi be lifted to previous 64 percent and
  • Stop fly-in and fly out of Ok Tedi workers to ensure money goes back to the people

Mr AwiYoto admits that the slow progress of development of the province was due to disunity amongst the leaders.

He assured Mr Marape that they are now ready to work together to ensure their people benefit from the money owed to them.

The 2018-2022 development plan under the theme “a new way forward” focuses on three key areas which are health, education agriculture and covers the province and its three districts in the Middle, South and North y.

“This is no easy task….everyone in this country have their own issues,” Mr Marape said while giving examples to how Buka and Lihir have fared poorly over the years despite the huge mining activities.

“Our agriculture and mining resources have been lost over the years while the people are suffering. Waigani is stealing from them and we are here now to turn things around,” Mr Marape said.

“These new work will take years but we want to direct and steer the country in the right path,” he said.

Mr Marape who travelled later to Tabubil to hear presentations from Ok-Tedi mining limited says everything will be discussed in Waigani after which they would strictly ensure monies owed to the people under various areas will be “unlocked.”

Mr AwiYoto says despite giving so much to the country the province has been failed by so many governments over the past years and is confident there is certainly a positive journey ahead.

Around 17,000 people gathered to welcome the prime minister at the Kiunga Township on Friday.

Mr Marape grew up as a child in Western province where his father was a Seventh Day Adventist pastor.

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