Norman B. Keevil Instute of Mining Engineering University of Brish Columbia, Vancouver, Canada ECONOMIC DIVERSIFICATION AND MINE CLOSURE: AN ANALYSIS OF THE MISIMA MINE CASE

A review of the community development projects at Misima Mine Ltd. in Papua New Guinea

Presented by: Nepeya Azaria Boa Outline

• Introducon • Socio-economic development and Mine Closure • A Tour of the Island • Placer Dome on Misima • Corporate Social Responsibility • Closure Plan • Community Development Projects • Discussion of Research Results • Conclusion Introducon

Meet the team • Suzee McFaul (SEF Canada), Dr. Andre Xavier & Azaria Boa (UBC)

Misima Case Study • Placer Dome Inc. planned to avoid the “Resource Curse” • Invested in Amenies and economic development projects • Many were not successful over the long term

Image sources; (1) hp://www.sefcanada.com/, (2) hp://www.presstv.ir/Program/283864.html, (3) hp://www.sefcanada.com/ Introducon

Research Goals Methodology

• Explore reasons for failed • Reviewed documents about projects Misima from industry, • Provide insight for industry government and scholarly on how to avoid sources unsuccessful economic • Interviews with mining diversificaon plans execuves from PDI & current exploraon company A tour of the island Environment • Locaon: 220 Km from east coast of Papua New Guinea

• Climate: Tropical Rainforest

• Topography: Volcanic and Mountainous

• Seismology:

Earthquake prone Freddie the surveyor

A tour of the island Mining History • Mining

Historic Gold exploraon: 1880-1950 • 1880: one of the first modern underground mines was on Misima • 1939-1945: WW2 & evacuaon of miners

Misima Circa 1920 A tour of the island – Mining History

Placer Dome Inc. & Misima Future Mining on Misima Mines Ltd.: 1989-2006 • • 1977: PDI gains exploraon Current exploraon for low rights on Misima grade gold and copper ore • • 2001: mining stops & Gold potenal, 10 year life reclamaon begins span, 350 jobs • • 2004: processing stops Copper Potenal, extends life spam to 50 years, 1000 • 2006: Barrick Gold Inc. jobs acquires Placer Dome • 2012: Final Closure is complete

Corporate Social Responsibility (CSR)

Placer Dome Inc. CSR ahead of Community engagement to its me include desires of the community Organizers of the closure plan • Environmental Protecon • Sustainable Advisory • Job security Commiee ( Stakeholders) • Misima Mine Closure Commiee (Closure experts)

Image source: hp://www.sefcanada.com/ CSR

Amenies

• Tradion Livelihoods: Subsistence farming, hunng and fishing

• No running Water

• Limited transportaon (roads, airport, dock)

• No electricity

Image source: hp://www.sefcanada.com/ • Placer Dome Inc. invested in upgrades and basic amenies Providing fresh running water for Bwagaoia Fishing docks Government building

New dock for fishing vessels Image sources: (1&2) hp://www.airpora.com/papua-new-guinea/misima-island-airport/photo/57669884/Bwagaoia_Town_Misima_Island__PNG, Road to airport (3&4) hp://www.corporateregister.com/a10723/pd-mm00-ssus-ca.pdf. CSR

Economic Development & Diversificaon • 80-93% Misiman employment at the Mine • Scholarships & Training • Cash crops & Processing Plant • Commercial Fishing • Guesthouse • Community Ovens • Garment Business

Office staff Image sources: (1) hp://imgc.allpostersimages.com/images/P-473-488-90/21/2171/JOKCD00Z/posters/marco-simoni-eastern-bread-baked-in-outdoor-communal-oven-olymbos-olimbos-karpathos-greece.jpg, (2) hp://the3fighngirish.blogspot.com.br/2012/06/belmont-cocoa-processing-plant.html , (3) hp://www.crowley.com/Industries-We-Serve/Fishing, (4) hp://www.anglicanfranciscans.org/franciscanimages/, (5) hp://pngemmiyet.blogspot.com.br/2011/01/western-highlands-provincial-government.html Image source: (1) hp://www.northernstar.com.au/news/apn-rescue/13004/, (2) hp:// hoveto.com/lileone/?p=1128 , (3) hp://themtnmillers.blogspot.com.br/2010_10_01_archive.html, (4) hp://overland, (5) hp://sanaakosirickylee.wordpress.com/ 2012/06/02/be-recepve-to-celesal-messages-omens-of-bad-luck/ ingwestafrica.blogspot.com.br/ CSR -Economic Development & Diversificaon

Further economic support • Royales • Land owner compensaons • Trust fund • Tax

Image source: hp://colombiareports.co/injusce-colombia-mining-royales/ Discussion of Research Results

Contribung factors for unsuccessful projects; • Lack of Capacity to manage • Ownership of projects was misplaced • Low social capital among stakeholders • Community not properly represented in plans • Project failure along social chain of custody

Image source: hp://volunteeralberta.ab.ca/wp-content/uploads/2014/03/capacity-building.jpg Conclusion Success stories • Good reclamaon • job security during mine life • health improvements • 300 off island miners are Before Reclamaon working today • inter generaonal legacy of educaon • social chain of custody not broken

Aer Reclamaon

Image source: hp://barrickbeyondborders.com/2012/12/a-look-back-at-the-misima-mine-closure/ Conclusion Successful economic diversificaon iniaves include: Undesirable outcomes

• amenies and economic diversificaon projects were • Early assessment of socio- not long lasng economic dynamics of the mine closure • Capacity building • Ownership of development plans within the community • Strong relaonships amongst stakeholders • Social capital • Management and technical training

Conclusion

Suggeson for industry

• Grassroots community engagement model

• Empower community by building capacity, leadership Enterprise Facilitaon and strong relaonships • planning has been successful in economic diversificaon during mine closure, and example of this is at the Cobar Mine in Australia. QUESTIONS? ~ OBRIGADA References

Australian Government, Department of Industry Tourism and Resources. (2006). Mine Closure and Compleon. Retrieved from hp://www.innovaon.gov.au/resource/Documents/LPSDP/ LPSDP-MineClosureCompleonHandbook.pdf. Barrick Gold Corporaon. (2012). A look back at the Misima mine closure. Beyond borders: Responsible mining at Barrick Gold Corporaon. Retrieved from hp://barrickbeyondborders.com/2012/12/a-look-back-at-the-misima-mine-closure/. Bergerud, E. M. (1996). Touched with Fire: The Land War in the South Pacific (p. 411). New York: Viking. Boulier, R.G. (2002). Mapping stakeholder relaonships: Experience from the Misima project, PNG. Paper presented at annual convenon of the Prospectors and Developers Associaon of Canada, Toronto, Canada. Byford, J. (2003). In Kay Kalim (Chair). Too lile too late: Women’s in the misima mining project. In Women's Issues in Mine Closure (pp. 1-24). The World Bank. Retrieved from hp:// siteresources.worldbank.org/INTOGMC/Resources/336099-1163605893612/ byfordtooliletolate.pdf Jackson, R. T. (2002). Capacity building in Papua New Guinea for community maintenance during and aer mine closure. Mining, Minerals and Sustainable Development, (181). Jul-Larsen, E., Kassibo, B., Lange, S., & Samset, I. (2006). Socio-economic effects of gold mining in Mali: A study of the Sadiola and Morila Mining operaons. Bergen, Norway: Chr. Michelsen Instute. Petueli, R., Pepena, P., Benko, W., & Muntz, W. (2001). Mine Closure – Misima Mines, A Case Study. ICME Newsleer, 6(3). Placer Dome Asia Pacific. (2000). Misima Mine Sustainability Report. Retrieved from hp:// www.corporateregister.com/a10723/pd-mm00-ssus-ca.pdf. Salim, E., Minangsari, M., & Sulaiman, R.E. (2002). The extracve industries review project 2002. In Extracve I ndustries Review (pp. 1-21). World Bank. McFaul, S., Xavier, A.M., & Mafu, N. (2013). Supporng mining community development through economic diversificaon: The adopon of Enterprise Facilitaon (EF) ™ in Cobar, Australia. Proceedings of 6th Internaonal Conference on Sustainable Development in the Minerals Industry, Milos, Greece. WCB Resources Ltd. (2010). Misima island. Retrieved from hp://www.wcbresources.com/misima-island/