Tag Archives: PNG development

Papuan landowners in PNG to receive first LNG project royalties of K15m

Boera village in Central province landowners from the PNG LNG Project to receive royalties. Video: EMTV News

Meriba Tulo in Boera village | Asia Pacific Report | September 13, 2017

After more than three years and 200 shipments, landowners of Boera village in Papua New Guinea’s Central province have became the first beneficiaries from the PNG LNG Project to receive royalties.

This followed the release of royalty benefits for PNG LNG Petroleum Processing Facility Licence 2 (PPFL2) area landowners to the Mineral Resources Development Company (MRDC) from the Department of Petroleum and Energy, Department of Finance, and the Central Bank.

Royalty payments for the four villages of Boera, Papa, Porebada and Rearea are in line with the Ministerial Determination number G692, 2015, which will see 83 clans receive a share of K15.6 million (NZ$6.7 million).

According to the Oil and Gas Act 1998, only 40 percent is to be paid as cash disbursement to landowners, with the remaining 60 percent to be set aside in two trusts – the Future Generation Trust Fund (FGTF) and Community Investment Trust Fund (CITF).

Royalty Payment Allocation:
1. Cash Payment to Landowners: K6,250,701.00
2. Community Investment Trust Fund: K4,688,026.00
3. Future Generation Trust Fund: K4,688,026.00

From the K6,250,701.00 cash allocation, this is further broken up according to the following:
1. Rearea Village: K1,746,946.00
2. Papa Village: K1,746,946.00
3. Boera Village: K1,352,027.00
4. Porebada Village: K1,154,755.00
5. Others: K250,028.00

Meriba Tulo is a senior reporter and presenter and currently anchors Resource PNG as well as EMTV’s daily National News. EMTV News items are republished by Asia Pacific Report with permission.

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K15M For LNG Plant Site Landowners Delayed Again

Melissa Yafoi | Post Courier | September 7, 2017

Highlands landowners from the LNG resource site yesterday stopped the K15 million payment for their coastal counterparts.

And their actions are likely to cause a shutdown at the plant site in Port Moresby as a result.

They insisted no payments be made until their own houses were put in order including the clan vetting process and other outstanding payment commitments made by the O’Neill government over the years were honoured.

They said failure to pay them will result in their shutting down of the project from the upstream end.

Their action is likely to result in the same threat from the coastal provinces who have resolved their outstanding clan ownership issues and only awaiting the first K15 million payment.

The Central landowners were about to be paid the amount having fulfilled all the legal requirements until yesterday when a demand for stop payment was made to the government through the Department of Petroleum and Energy.

The LNG site landowners insistence were despite court actions and disputes and the outstanding clan vetting process on ownership of the land which the project is located delaying their payments.

All monies owed to them are banked in trust accounts including those from Central Province.

In the ransom-like situation newly appointed Petroleum and Energy Minister Fabian Pok was caught off guard lamely saying he was new to the job and needed more time to understand the outstanding issues.

This is despite the Government’s previous hard line stance in paying landowners that resolve their landownership issues ahead of those pending in courts, the mediation process and other resolution arbitration.

Departmental Deputy Secretary Kepsey Puiye and Mineral Resources Development Company Limited external affairs general manager Imbi Tangune also succumbed to the demands saying it was sensitive and payment would not be made to the Central landowners.

Mr Puiye said the K15 million will be paid to the plant site land owners once the minister gives his approval.

He said of the amount 60 per cent will be kept by MRDC as per the Oil and Gas Act under section 176 and only 40 per cent will be paid for immediate investment.

“This is one of the very important projects that will have a profound effect on the economy of the country that is why it is important that the minister needs to appreciate all the issues for the upstream.

“Because the upstream holds the pipeline and that is important so the minister is also very cautious of the implications it will have on the upstream landowners because projects such as this is fundamentally important so he is saying let me look at the issues first.

“The plant site landowners need to appreciate that once the upstream is not alright then we are going to destroy the project,” he said.

Mr Tangune added: “I’m actually very sensitive to the minister’s need to ensure that he understands the issues surrounding payments for the plant site, licence areas and the pipelines so when he is actually comfortable he will give us the timeline for us to make that payment.

“We’ve done everything and the money is with us and we have done everything to pay the money to the land owners.

We ask our landowners to be patient because money is coming, it’s not an issue of its not, it’s an issue of when and I think we have done everything possible to give money to landowners whatever they are entitled to.”

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2017 Bougainville Chocolate Festival

Post Courier | September 6, 2017

The 2017 Bougainville Chocolate Festival has officially begun. The Autonomous Bougainville Government Minister for Primary Industries, Marine Resources and Forestry Nicholas Darku and Australia’s Deputy High Commissioner Bronte Moules launched the two-day festival with a colourful and delicious ceremony in Arawa.

The event brings together cocoa farmers, chocolatiers, industry representatives and government officials to network and discuss market access, share improved farming and processing techniques. As well as sample the delicious chocolate made from Bougainville’s finest beans.

Minister Darku speaking at the opening ceremony said the festival is a culmination of efforts by the Bougainville Government and its stakeholders to revitalise the cocoa industry in Bougainville.

“The cocoa industry has significant and immediate growth potential for Bougainville. That’s why it makes sense to focus on rebuilding the industry to improve livelihoods of our people and at the same time, grow the economy,” Minister Darku said.

Ms Moules in her remarks commended the Autonomous Bougainville Government for its proactive efforts to boost the cocoa sector in Bougainville.

“We know that money from cocoa brings better health and education and more opportunities for Bougainvilleans. That’s why the Papua New Guinea-Australia Partnership, together with New Zealand, is working in Bougainville to help develop the cocoa value chain.

“Our partnership is working to improve the business environment and market access, increase production and quality and ultimately, put more money in the pockets of Bougainvillean farmers,” Ms Moules said.

The chocolate competition will again be a highlight at the festival this year. Farmers from throughout Bougainville have sent samples of their cocoa to Paradise Foods’ Queen Emma Chocolate Factory to be made into chocolate. A panel of local and international judges will then sample the chocolate before making a final decision on medal winners.

The Festival is an initiative of the Autonomous Bougainville Government led by the Department of Primary Industries in partnership with the Governments of Papua New Guinea, Australia and New Zealand.

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Mine attack threatens investor [exploiter] confidence: MRA

Cedric Patjole | Loop PNG | September 5, 2017

The re attack at the Kainantu Gold Mine last week has seriously threatened investor [exploiter] confidence in a big way, according to Mineral Resources Authority Managing Director, Philip Samar.

In a media conference yesterday, Samar said the attack on the mine developer K92 Mining Inc, which was a new company to PNG and who invested millions of kina to revive the mine, had serious implications.

He said the company spent the last two years carrying out maintenance at the mine site and only began selling in July, of which the true bene ts were yet to be seen when the attack occurred.

“It’s really discouraging,” said Samar.

“There will be people (investors) watching and wondering what’s going to happen next.”

According to K92 Mining Inc, K120 million (US$40 million) was injected to restart the mine while its total annual operating expenditure sits at K77 million per annum.

There have also been payments to landowners to the tune of K2 million while local landowner contracts total K738,000.

Samar said with such level on investment, any outstanding issues must be addressed through the proper channels and not by landowners taking the law into their own hands.

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Landowners Plan To Block Hidden Valley Mine Road

Bradley Mariori | Post Courier | September 5, 2017

Landowners of Hidden Valley in Bulolo District, Morobe Province are planning to block off roads leading to the mine site today.

This is in response to what they termed as the unfavourable response to their demands which they presented in a petition last Thursday.

The landowners walked out of the meeting with the mining company and decided to take action to get the attention of the government.

The petition by the landowners lapsed on 26th August.

Their demand was for the mining company to review all contracts and give landowner companies greater opportunities to participate in contracts and other spin off benefits to come off from the mine development.

The contracts include labor hire, transport hire, bus services, fuel cartage, general cargo, waste management, environment monitoring and rehabilitation, travel agency, boiler shop contract, crusher contract, camp services and maintenance, heavy equipment (assembling and dismantling), security, catering services, and all contracts given to non landowners including foreign companies be given direct to landowner companies

Landowner spokesman, Andrew Kupa of Seproku Limited said they walked out of the meeting with Harmony Mine because their demands were not met.

“We have given them 14 days to respond to our demands and they have not responded in our favor or responded according to the memorandum of agreement we signed,” Mr Kupa said.

“It will be a peaceful demonstration by blocking the road and we will get those people in higher authorities to come down and address these issues.

“In the last seven years, we have not been benefiting from NKW which Harmony Gold said is a landowner company.

“Contracts coming to the little landowner companies are the way to go about and not NKW as an umbrella company which does not benefit us.

“It’s a matter of giving us contracts and everything will go back to normal,” said Mr Kupa.

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K92 Mine Damage Valued at K6-9 Million [PC] or K13 million+ [RH]

Rosalyn Albaniel | Post Courier | September 4, 2017

The developers of the mine in Kainantu have reported the destruction and damage to its assets to be between US$2-3million (K6-9million).
The company has begun its rebuilding process, but the damage has set the company back quite substantially.
This was revealed by the Mineral Resources Authority managing director Philip Samar at a press conference in Port Moresby yesterday.
Mr Samar said the firm had advised that as a result it has since been forced to stop its underground production for at least a month.
The loss in revenue as a result is estimated to be US$2.5 million (K7.9million).
The firm also reported that about 200 workers and contractors would also have to be stood down or laid off in the short term.
Mr Samar said while the mine workers have returned to site following the mayhem he had been advised that it would take up to two months before it recommences commercial production.
The ripple effect of this he said would be a delay in benefits to the country including royalties.
He said among the properties burnt and damaged were the firms underground cablings, the prime movers all amounting to an estimated K13 million.
The latter the developer K92 Mines had advised required a lead time of about six months to order.
He said there were other costs also likely to be incurred including a penalty clause from their marketing contracts.
“Those are some of the costs that come with us acting the way we did,” the MD stated.
Mr Samar said the situation was quite disappointing and concerning especially for the developer which after two years had just kept true to its word turning around a mine which two other previous developers had relinquished ownership of.
Further and only after just one shipment.
Meanwhile, the company in its brief shows expenditure on mine restart was US$40million, while revenue from its first and only sale to date US$3million.
The mine had provided employment for 500 workers, 300 local landowners, 170 nationals and 30 expatriates.
Its wages bill annually is K6.6million for local landowners, while total operating expenditure K75 million per annum.
In the two years it has contributed to the socio-economic development in the local community it operates in including haus krai’s.

Property damage to cost K92 mine K13mil-plus

Shirley Mauludu | The National aka The Loggers Times | September 5, 2017
THE cost of the damage by landowners to the K92 mine in Eastern Highlands has been put at K13 million by the operator K92 Mining Ltd.
This is broken down into K10 million for the damage to mobile equipment, K2 million to fixed plant and K1 million to damage underground.
This will likely result in the suspension of underground production for at least one month which may cost the operator US$2.5 million (K7.82 million) loss.
In addition, about 200 workers and contractors will be stood down or laid off for a while.
Mineral Resources Authority managing director Philip Samar said the damage to the mine on Aug 24 was huge.
“The mine employees have gone back to work. But I don’t think they will go straight to commercial production. The damage is significant,” Samar said.
“From the briefing that I have received from the company, it’ll be something like two months before they go into commercial production.”
He said royalties for the months of July, August and even September may not be paid also.
“In terms of return to commercial production, it’s difficult because of all these things they need to be fixed. All the cabling into underground, everything was ripped up. Significant damage there,” he said.
Samar said other costs could be added on later for the mine to return to normal operation.
“Those underground miners are not easy to replace,” he said.
“And to replace one of those trucks, it’s not easy.
“You can’t make a phone call (to order a new one) for them to ship one over just like that.
“There is a leave time in access of six months for one. They destroyed two trucks. You can’t use a wheelbarrow to do that.”

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AusAID to partner with mining industry to deliver ‘aid’

Peter Aitsi and Bruce Davis can’t keep a straight face – just one more way for the Australian taxpayers to subsidise their mining industry!

THIS WOULD BE HILARIOUS IF IT WASN’T SO PATHETIC

EVEN MONTY PYTHON COULDN’T COME UP WITH ANYTHING SO RIDICULOUS…

Aust to assist Newcrest facilitate projects in PNG

The National | September 1, 2017

AUSTRALIA has entered into a partnership with Newcrest Mining Limited to facilitate support on projects in Papua New Guinea.
Australian High Commissioner Bruce Davis and Newcrest country manager Peter Aitsi signed an agreement yesterday.
The first year will be committed to:

  • Scholarships for Diploma of Nursing;
  • Australian awards scholarships in midwifery;
  •  Workshops on extractive Industries transparency initiative;  and,
  •  A mineral economics course to be delivered under the Pacific leadership and governance precinct.

Davis said it reflected Australia’s focus on engaging businesses to assist in development challenges.
“The approach recognises that the private sector has the means and increasingly the motivation to contribute to the development outcomes as part of their core business,” Davis said.
“It also recognises that the private sector are key players in addressing and improving the business environment, not just for themselves but also for their suppliers, buyers, employees and their employee’s families.
“Newcrest is on such company. Newcrest’s confidence in Papua New Guinea as an investment destination matches the Australian High Commission’s positive long-term outlook for Papua New Guinea.”
Aitsi said the company’s commitment to development was for the long-term.
“Newcrest already has a long record of engagement in PNG. And with 40 per cent of our global assets in this country, we hope to be a partner to Papua New Guinea for decades to come,” he said.

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