DOCSLIB.ORG

Press Review: Mining in the South Pacific Vol. 5, No. 1, January

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Press Review: Mining in the South Pacific Vol. 5, No. 1, January Press review: Mining in the South Pacific Vol. 5, No. 1, January – February 2013, 92 pages Compilation: Dr. Roland Seib, Hobrechtstr. 28, 64285 Darmstadt, Germany http://www.roland-seib.de/mining.html Copyright: The material is copyrighted by the media and authors quoted. Abbreviations in common use: BCL: Bougainville Copper Limited LNG: Liquid Natural Gas PIR: Pacific Islands Report PNG: Papua New Guinea Websites: Pacific Islands Report: http://pidp.org/pireport/index.htm PNG Post-Courier: http://www.postcourier.com.pg PNG The National. http://www.thenational.com.pg ------------------------------------------------------------------------------------ Ramu Nico seeks qualified, experienced staff Post-Courier 28.2.2013 By Matthew Yakai THE first nickel and cobalt project in PNG based in Madang, the Ramu NiCo Project, strives to re- cruit and retain experienced and qualified mine engineers and other trades from within and abroad given the nature of the Project.During the First Quarter Ramu NiCo Project Quarterly Meeting held in Madang yesterday, Human Resources Deputy General Manager John Rosser told participants that experts are sought from countries including Canada, Australia and New Zealand, including PNG to ensure the Project is operated and managed by qualified people. Mr. Rosser indicated that the recruitment drive is permitted by the Project MOA which gives first preference to local project area people, followed by people from Madang, and rest of the country before seeking experts ab- road. Mr. Rosser indicated that by the end of December last year, a total of 626 nationals were working with Ramu NiCo from both sites, KBK Mine and Basamuk Refinery including Madang and Port Moresby offices compared to other expatriates. He also reiterated that the recruitment and training 2 drive is ongoing as expected, but the future recruitment and training will depend very much on the project success and its sustainability, as the Project commenced operation recently. “Without this Project, we will fail. Project ramp-up is continuing with most equipment working well per the de- sign capacity but there are challenges faced and rectification work is required with huge financial cost,” he said. However, Ramu NiCo Management aims to complete the Project ramp-up soon with full capacity production in late 2014 or early 2015, a healthy trend compared with other similar late- rite nickel mine companies in the world. Community Affairs General Manager, Martin Paining also presented the Project update covering the Kurumbukari Mine, the 135 km Pipeline and Basamuk Refinery, including the SEDP (Social Economic Development Programs) under the MOA. Mr. Paining said the Project may face huge challenges in the next two years if the production capacity does not reach its expected capacity and urged the landowners and other stakeholders to understand the situation. “It is normal for a new mi- ning Project in the first year. We must understand that if there is no Project, MOA expectations will miss out,” The Meeting is required under the Project MOA to give landowners an update on the Project. It was attended by all the four LOA Chairmen with their executives, Ramu NiCo manage- ment, state team and other stakeholders. US giant using SOPAC and illegal Fiji regime to access seabed minerals in internatio- nal waters PNG Mine Watch, 28.2.2013 The illegal government in Fiji is being squeezed by the American corporate giant, Lockheed Martin, to sponsor its search for seabed minerals in international waters. To that end, Lockheed is pushing the Fiji regime to fast track legislation and is being assisted in this endeavor by the Deep Sea Mine- rals Project (run by SOPAC, part of the Secretariat of the Pacific Community) and its British lawyer, Hannah Lily. Fiji’s cabinet is expected to approve a new Decree on seabed mineral ma- nagement by March the 5th. Consultation on the draft Decree has been fast tracked with relevant stakeholders given less than 3 days to make submissions whilst US giants Lockheed were consulted well in advance. The new law is required before Lockheed will enter into a formal joint-venture with the Fiji regime. Lockheed will then apply in April to the International Seabed Authority for a new exploration licence. The new law, which SOPAC, has assisted in drafting, makes vague statements about applying a precautionary approach and best environment practices and requiring Environment Impact Assess- ments but without specifying where or how Fiji is suddenly to get the expertise to manage and en- force these. Lockheed has already been granted approval by the International Seabed Authority to explore for polymetallic nodules in one area in partnership with the UK government. It now wants to join Fiji as its official national partner for further exploration licences – but first Fiji needs to ha- ve the necessary laws to allow seabed mining in place. The proposed legislation covers the various aspects and issues arising out of experimental seabed mining operations, including establishing a regulatory authority within Fiji, and introducing a licensing regime, provisions on the protection of the marine environment, and delineating Fiji’s and the company’s duties and responsibilities. Hannah Lily, employed as a legal adviser by SOPAC, seems to have been advising on the drafting process directly on behalf of Lockheed (LH). Here are some of her comments on a draft version of the new law: • “LH would not accept the jurisdiction of the courts of Fiji, in case of dispute. The sub- contract would specify that the parties would be subject to UK law and courts. LH therefore suggest section 14 be deleted to avoid confusion. However UNCLOS Art 235 requires that: “States shall ensure that recourse is available in accordance with their legal systems for prompt and adequate compensation or other relief in respect of damage caused by pollution 3 of the marine environment by natural or juridical persons under their jurisdiction”. the IT- LOS Advisory Opinion summarises this as ‘requiring the sponsoring State to establish pro- cedures, and, if necessary, substantive rules governing claims for damages before its domes- tic courts’. Whether the proposed Fiji / LH model can navigate this requirement and LH’s requirement for UK arbitration remains a point to be explored” • “LH consider it unfair both to be charged the admin fee and to require the Company to cover its application costs. They suggest it should be one or the other, not both. “LH would expect a standalone non-disclosure agreement to cover Fiji’s handling of their commercial data” • “Query whether there is a reason Fiji would like this notice period to be so lengthy? LH would prefer this to be shorter, or if that is not possible to clarify that they would not be pe- nalised for failure to conduct activities during that 6-month notice period” • “LH request to delete, otherwise Fiji could unilaterally revoke the licence after 2 years’ in- action, which creates too great an uncertainty for the company” • “LH request that these specific figures are removed from the Decree and replaced with a provision permitting the Government to negotiate financial terms in a Sponsorship Agree- ment. NB The suggested fees are too high for LH. The UK rates (GBP 10k for application, 15k for first year, 25k after 6 years , 25k on each extension), which use an actual cost recovery mechanism would be more feasibl for LH - perhaps with some small room for negotiation, given that this is a developing country” • “LH would require that the contract stipulates the UK as the prevailing law and dispute reso- lution mechanism” The International Sea Bed Authority (ISBA) which regulates the leasing of seabed deposits have not yet developed a mining code to regulate the exploitation of minerals in international waters. NGOs have raised serious concerns about the experimental nature of the industry as well as its relevance as a development option for island nations. In addition NGOs have raised concerns about the need to protect the marine environment, prevention of pollution from seabed activities and whether states such as Fiji have the ability to monitor the environment impact. Oil Search Limited seek to expand explorations Post-Courier 28.2.2013 By Paeope Ovasuru Oil Search Limited (OSL) is now focused on expanding its gas expansion activities after recording a significant profit last year. With new partners coming on board and exploration and appraisal dril- ling activities in the Highlands, Gulf of Papua, Kurdistan and Tunisia, OSL is set for more progress in delivering its key growth strategies this year. According to managing director Peter Botten, dril- ling at P’nyang South in the Southern Highlands Province was successful in adding material reser- ves. “Studies by the P’nyang Joint Venture on what is an optimal development concept for the field are now taking place. We believe that the P’nyang resource is sufficient to allow gas expansion ac- tivities,” he said. In the Gulf of Papua, OSL is preparing for a multi-well exploration program which is due to start in March. “The drilling program comprising two firm wells will be the first re- al test of the many leads and prospects identified by the 2011 and 2012 seismic surveys. We believe that given exploration success, the Gulf drilling region could potentially have enough gas to support the development of a future standalone LNG project,” said Mr Botten. He further stated that as part of the company’s strategy to build a material oil business, drilling acti- vities commenced in Kurdistan in 2012 and will continue this year with activities in Tunisia. “Early results at the Taza well in Kurdistan have proved encouraging with the discovery of oil in the Jeribe Formation. Testing to date has been impacted by difficult drilling conditions with only relatively low production rates achieved so far.
Load more

Recommended publications
  • The Bougainville Bulletin Edition 11 2017
    Edition 11 - December 2017 Free copy, not for sale Our voice, Our image, Our place Email: [email protected] | us AutonomousBougainvilleGovernment | www.abg.gov.pg BOUGAINVILLE TO BE MAJOR BOUGAINVILLE ECONOMIC DECLARED PROJECTS UPDATE DEVELOPMENT WEAPONS-FREE Page 6 Page 10 Page 14 AROB-PNG Women unite leaders talk Women of Bougainville have met on the 16th anniversary of the signing of the Peace referendum Agreement to discuss unification and their leadership role in Bougainville’s future. he long deferred TJoint Supervisory Body (JSB) meeting between the Autonomous B o u g a i n v i l l e Government and the National Government has been scheduled for the 14-15 December. In a special parliament convened on 22 November President Chief Dr John Momis said some of the agendas are outstanding from previous JSB meetings, while others are focused on referendum preparations. A key issue for discussion will be the eputy Speaker • Discuss unification “In the early part of the recent formation of the DFrancesca Semoso, and solidarity to promote peace process you risked Bougainville R e f e r has brought Bougainville women’s empowerment and your lives going into the e n d u m Commission women together to discuss advance their participation jungles to persuade your and the urgency to their leadership role as in political processes. husbands, children and operationalize it. the region prepares for Ms Semoso said women relatives to put down “We need to appoint referendum. Held at should be educated about weapons and join the peace Commissioners, agree Parliament House, Speaker the roles of the parliament, process,” Hon Hamal said.
    [Show full text]
  • Human Capital in the Human Resource Management Literature...11 2.1 Introduction
    ‘Human Capital Analysis’ Describing the Knowledge Gap in the Financial Investment Recommendation Process Using Human Capital Analysis Burcin Hatipoglu Industrial Relations and Organisational Behavior School Of Organisation and Management The Australian School of Business University of New South Wales Thesis submitted in fulfillment of the requirement for the degree of Doctor of Philosophy August 2010 Abstract Describing the Knowledge Gap in the Financial Investment Recommendation Process Using Human Capital Analysis After 2000 we have witnessed corporate collapses and at the same time a decrease in the trust in the financial investment industry. More than before, individuals are finding themselves investing in the financial markets directly or indirectly. Now, unsurprisingly, they tend to seek more accurate information about the reality that will aid them in decision making and at the same time build their trust in companies. This thesis seeks to examine the extent to which human capital information is reported by corporations to the public and the extent to which human capital information is analyzed by equity analysts in their investment recommendations in the Australian Equity Market. Knowledge sharing is making investors more knowledgeable through communications, which results in better decision making. The thesis examines separately the reporting of human capital in human resource management literature and finance and accounting literature. The human resource management and sustainability literatures establish a positive link with better human resource practices and financial results. Several different methods have been developed for measuring the value of human capital in human resource management. In the finance literature financial models that are used for estimating future company performance, derive data from financial statements.
    [Show full text]
  • The Sukundimi Walks Before Me
    THE SUKUNDIMI WALKS BEFORE ME SIX REASONS WHY THE FRIEDA RIVER MINE MUST BE REJECTED About this report This is a publication of the Jubilee Australia Research Centre and Project Sepik Principal Author: Emily Mitchell Additional Material and Editing: Luke Fletcher, Emmanuel Peni and Duncan Gabi Published 14 March 2021 The information in this report may be printed or copied for non-commercial purposes with proper acknowledgement of Jubilee Australia and Project Sepik. Contact Luke Fletcher, Jubilee Australia Research Centre E: [email protected] W: www.jubileeaustralia.org Project Sepik Project Sepik is a not-for-profit organisation based in Papua New Guinea that has been working in the Sepik region since 2016. Project Sepik advocates for the vision of a local environment with a sustained balance of life via the promotion of environmentally sustainable practices and holding to account those that are exploiting the environment. Jubilee Australia Research Centre Jubilee Australia Research Centre engages in research and advocacy to promote economic justice for communities in the Asia-Pacific region and accountability for Australian corporations and government agencies operating there. Follow Jubilee Australia on Instagram, Facebook and Twitter: @JubileeAustralia Acknowledgments Thanks to our colleagues at CELCOR, especially Mr Peter Bosip and Evelyn Wohuinangu for their comments on drafts. Thank you to Rainforest Foundation Norway for generously supporting this project. Cover image: Local village people along the Sepik River THE SAVE THE SEPIK CAMPAIGN The Save the Sepik campaign is fighting to protect the Sepik River from the Frieda River Mine. It is a collaboration between Project Sepik and Jubilee Australia Research Centre.
    [Show full text]
  • PNG's Ok Tedi, Development and Environment
    Parliamentary Research Service PNG's Ok Tedi, Development and Environment Paul Kay Science, Technology, Environment and Resources Group 19 September 1995 Current Issues Brief NO.4 1995-96 Contents Major Issues 1 Background to Ok Tedi 3 Discovery and Development 5 Geology and Mining 8 The Economic Impact ofOk Tedi 9 Environmental Issues 12 Legal Challenges 14 Endnotes 16 Tables Table 1 : Comparison of the Fly River with Other Recognised Systems 14 Figures Figure 1 : Ok Tedi - Locality Maps 4 Figure 2 : Original Ok Tedi Ore Body and Mount Fubilan 6 Figure 3 : Ok Tedi Locality Map 6 PNG's Ok Tedi, Development and Environment Major Issues The Ok Tedi mine commenced operations on 15 May 1984, bringing tremendous change to the Western Province of Papua New Guinea (PNG). On a national level. PNG depends on the mine for 15.6 per cent of export income, royalty and taxation payments. Regional development ofthe Western Province ofPNG has been facilitated by the Ok Tedi mine and the development ofthe mine has accrued substantial benefits to the local people. The mine has created employment and business opportunities along with education options. Through the provision of medical services, people in the mine area have experienced decreased infant mortality. a decreased incidence of malaria and an average 20 year increase in life expectancy.' Some 58 million tonnes of rock are moved each year at Ok Tedi by means of open cut mining techniques. Of this, 29.2 million tonnes of ore are recovered per annum while the remainder is overburden or associated waste. The result ofthis production is about 589000 tonnes of mineral concentrate, which is exported to markets in Asia and Europe.
    [Show full text]
  • BHP: Fine Words, Foul Play 23 September 2020 Introduction
    BHP: fine words, foul play 23 September 2020 Introduction BHP presents itself, and is often considered by investors, as the very model of a modern mining company. Not only does it present itself as socially and environmentally responsible but now as indispensable in the efforts to save the world from climate catastrophe. Given the impacts and potential impacts of its Australian operations on Aboriginal sites and the furore over Rio Tinto’s destruction of the Juukan Gorge site earlier this year, perhaps BHP will begin to tread more carefully. It certainly needs to. This briefing summarises concerns around current and planned operations in which BHP is involved in Brazil, Chile, Colombia, Peru and the USA. LMN and our member groups work with communities or partner organisations in these five countries. Concerns include ecological and social impacts, violation of indigenous rights, mining waste disposal and the financing of clean- up. Other matters of current concern are briefly noted. At the end of the briefing are reports on three legacy cases - in Papua New Guinea, Indonesia and Colombia - where BHP pulled out, leaving others to deal with the environmental destruction and social dislocation caused by its operations. LMN exists to work in solidarity with communities harmed by companies linked to London, including BHP, the world’s largest mining corporation. This briefing is intended to encourage those who finance the company to use that finance to force change, and members of the public to join us in support of communities in the frontline of the struggle to defend their rights and the integrity of the planet’s ecosystems.
    [Show full text]
  • Our Publications 2006-06-02 00:00:00 Sustainable Banking In
    Sustainable Banking in Practice A closer look at the nominees for the 2006 Financial Times Sustainable Banking Awards Prepared for BankTrack by Jan Willem van Gelder, Profundo BANKTrack May 2006 Sustainable Banking in Practice Contents Introduction .............................................................................3 Archipelago Resources, Australia ................................................4 BHP Billiton, Australia................................................................4 Bunge, United States ................................................................5 Ciliandra Perkasa, Indonesia ......................................................6 Gazprom and Rosneft, Russia.....................................................7 Newmont Mining, United States..................................................9 Pou Chen, Taiwan and Yue Yuen, Hong Kong................................9 Sinopec, China ....................................................................... 10 Sonangol, Angola.................................................................... 11 State of Israel, Israel .............................................................. 12 Total, France.......................................................................... 13 2 Sustainable Banking in Practice Introduction The British business newspaper Financial Times together with the International Finance Corporation is awarding the 2006 Financial Times Sustainable Banking Awards to “recognise banks that have shown leadership and innovation in integrating social,
    [Show full text]
  • Taking Responsibility for Australia's Mining Legacies
    GROUND TRUTHS: TAKING RESPONSIBILITY FOR AUSTRALIA’S MINING LEGACIES Charles Roche and Simon Judd ACKNOWLEDGEMENTS Research: Charles Roche, Simon Judd and Sangita Bista We recognise and pay tribute to the communities, researchers and mining professionals who have long understood the need for mining legacies reform in Australia. This project was sponsored by a grant from the Australian Conservation Foundation. Editors: Charles Roche and Simon Judd Design and layout: Elbo Graphics All images (c) MPI unless attributed Cover artwork: Trying to Protect Our Land, Jacky Green Prints available, monies raised will support community response to mining at McArthur River. ISBN: 978-0-9946216-0-3 A publication by the Mineral Policy Institute www.mpi.org.au | [email protected] GROUND TRUTHS: TAKING RESPONSIBILITY FOR AUSTRALIA’S MINING LEGACIES 2 CONTENTS Executive Summary 4 Recommendations 4 Mining In Australia 5 Mine Closure Or Mining Legacy? 6 Success or failure? Mine closures in Australia 6 Mining legacies 7 The Australian response to mining legacies 7 International recognition and response 9 Risk 11 Environmental and social risk 11 Financial Risk 12 Textbox 1. Yabulu Refnery 14 Examples Of Mining Legacies In Australia 15 New South Wales coal – case studies 15 Textbox 2. Financial risk at Russell Vale 18 Victorian coal – case studies 19 Textbox 3. A lack of closure planning at Anglesea 21 The Carmichael coal mine; project viability and closure risk 23 McArthur River Mine 23 Ranger Uranium Mine 24 Textbox 4. Burning rocks and technical risk at McArthur River 26 Regulation and Management of Mine Closure and Mining Legacies 28 Coordinated action on Australian mine closure 28 The state system and environmental fnancial assurance 28 The bonds system 29 Mining levies 29 New South Wales 29 Textbox 5.
    [Show full text]
  • TROUBLED WATERS How Mine Waste Dumping Is Poisoning Our Oceans, Rivers, and Lakes
    TROUBLED WATERS HOW MINE WASTE DUMPING IS POISONING OUR OCEANS, RIVERS, AND LAKES Earthworks and MiningWatch Canada, February 2012 TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................1 TABLE 1. WATER BODIES IMPERILED BY CURRENT OR PROPOSED TAILINGS DUMPING ................................. 2 TABLE 2. MINING CORPORATIONS THAT DUMP TAILINGS INTO NATURAL WATER BODIES .......................... 4 TAILINGS DUMPING 101....................................................................................................5 OCEAN DUMPING ....................................................................................................................................... 7 RIVER DUMPING........................................................................................................................................... 8 TABLE 3. TAILINGS AND WASTE ROCK DUMPED BY EXISTING MINES EVERY YEAR ......................................... 8 LAKE DUMPING ......................................................................................................................................... 10 CAN WASTES DUMPED IN BODIES OF WATER BE CLEANED UP? ................................................................ 10 CASE STUDIES: BODIES OF WATER MOST THREATENED BY DUMPING .................................11 LOWER SLATE LAKE, FRYING PAN LAKE ALASKA, USA .................................................................................. 12 NORWEGIAN FJORDS ...............................................................................................................................
    [Show full text]
  • CUT and RUN: How Britain's Top Two Mining Companies Have Wrecked Ecosystems Without Being Held to Account
    CUT AND RUN: How Britain's top two mining companies have wrecked ecosystems without being held to account Aerial view of a coal mining operation in Central Kalimantan, Indonesia. Credit: Daniel Beltrá London Mining Network (LMN) is an alliance of human rights, development, environmental and solidarity groups. Published February 2020 London Mining Network is especially grateful to The Gaia Foundation, Andrew Hickman, Hal Rhoades, Volker Boege, Richard Solly and Lydia James for their support. Report designed by Javiera Martínez and edited by Ciprian Diaconita. The contents of the report are the sole responsibility of London Mining Network. London Mining Network, 225-229 Seven Sisters Road, London, N4 2DA Tel: +44 (0) 7903851695 Registered Charity No. 1159778 CONTENTS INTRODUCTION 4 BHP DESTROYING BORNEO´S RAINFOREST 6 Indomet coal mine, Indonesia WILL THE MINE CLEAN UP THE RIVER? 11 Ok Tedi mine, Papua New Guinea RIO TINTO THE MINE THAT CAUSED A CIVIL WAR 14 Panguna mine, Bougainville THE MONSTER THAT IS EATING 20 OUR LAND Grasberg mine, West Papua CONCLUSIONS AND RECOMMENDATIONS 24 REFERENCES 25 INTRODUCTION Mining is one of the most destructive activities in This report examines several cases where two the world. Apologists for the industry* tell us that it mining companies with good reputations among only disrupts one per cent of the Earth’s surface and ‘ethical’investors have not only created severe and yet, along with agriculture, supplies 100 percent of lasting environmental damage but have then its people with the things we need to live. walked away, leaving responsibility for clean-up to others who have proved unable or unwilling to do it.
    [Show full text]
  • Environmental Protection After Bougainville1
    APPENDIX A: ENVIRONMENTaL PROTECTION AFTER BOUGaINVILLE1 Today, environmental understanding and government regulation have moved on and it is highly unlikely that regulators and investors would approve a mine which depended on riverine tailings disposal. Regulation of mining is an area where the World Bank’s Mining Division has pro- vided valuable technical assistance to countries such as Papua New Guinea (PNG), and as a result the PNG authorities and the authorities in other countries have a much stronger capacity to monitor the effects of mining on the environment and to demand remediation when and where necessary or to withdraw the company’s mining permit.2 The history of Freeport’s mine in Indonesia which uses riverine tailings disposal shows what can happen when a well-resourced government and a mining company work together to understand and minimize adverse environmental impacts. Forty years ago riverine tailings disposal was a risk that both the gov- ernment of PNG and the mining companies were willing to take in order to generate tax and royalty revenues and to provide jobs. Rather than going ahead with mining others would doubtless have voted to leave the minerals in the ground as was the case with Canford. At the time when Bougainville Copper Limited (BCL) and Ok Tedi were per- mitted, NGOs were not as influential in the decisions that were made about tailings disposal as they would be today. Moreover, the monetary fines andcompensation ­ now levied on environmental offenders provide a brake on risk taking. © The Author(s) 2017 207 G. Cochrane, Anthropology in the Mining Industry, DOI 10.1007/978-3-319-50310-3 208 AppEndiX A: EnVironmEntal ProtEction AftEr BoUgainVillE1 Contemporary attitudes and the record suggest that BCL and Ok Tedi should not be used to characterize all mining because BCL and Ok Tedi risks were unique both historically and geographically and because not all mining produces toxic waste that requires impoundment.
    [Show full text]
  • Broken Hills: Six Cases from BHP's Long Trail of Disasters
    Broken Hills: Six cases from BHP’s long trail of disasters Above: Devastation one month after the Fundão dam collapse. Photo credit: Nilmar Lage Introduction From Latin America to Oceania, companies in the BHP group have left a trail of environmental, social and public health disasters. All too often they have walked away from the devastating messes that their critics accuse them of ​ creating. In so doing they have left communities and lands scarred, while the work, and the cost, to heal and restore is left ​ ​ in the hands of others. In this short briefing you will find five cases of ongoing disasters, and one case, in the ​ United States, of a disaster in the making. Ok Tedi, Papua New Guinea Majority owned and operated by BHP until 2002, the Ok Tedi copper and gold mine in Papua New Guinea began production in 1986. Since that time, the mine has discharged 80,000 metric tonnes of mine wastes, including heavy ​ metals, directly into the Fly River system every day. The rivers downstream of the mine run thick and grey. When the river floods, it rises over its banks, smothering the ​ forests and food-producing gardens of the indigenous peoples living along the Ok Tedi and Fly Rivers. The ​ polluted water also travels up side-creeks, wreaking similar destruction there. More than 2,000 square kilometres of forest have been damaged or destroyed by tailings from the Ok Tedi mine, ​ ​ including the hunting, fishing and garden areas of more than 40,000 indigenous people. Mount Fubilan, the site of the Ok Tedi Mine, has been reduced from a peak of over 2,000 metres, to an open pit, the bottom of which lies at sea level.
    [Show full text]
  • Lessons from Ok Tedi in Papua New Guinea
    2 7 Science, governance and environmental impacts of mines in developing countries: lessons from Ok Tedi in Papua New Guinea Ian C. Campbell 27.1 Introduction The construction of the Ok Tedi mine in western Papua New Guinea (PNG) began in 1981, with the fi rst production commencing in 1984. The mine is operated by Ok Tedi Mining Limited (OTML), a company jointly owned in the 1990s by the Australian mining company BHP, the PNG government, and Inmet Pty Ltd, a Canadian mining company. In 2002 BHP, which by then owned 52% of the shares, withdrew from OTML, passing its shareholding to PNG Sustainable Development Program Limited, a company established solely for the purpose of administering the 52% share in the company and using any returns to undertake development work in PNG, particularly within the Western Province. The remainder of the shares are held by the PNG government (30%) and Inmet (18%). However, in 2009 Inmet commenced negotiating with the PNGSDPL to exchange its 18% equity interest for a 5% net smelter return royalty (Inmet, 2010 ). The mine has been a major contributor to the economy of PNG. In 2007 it achieved a record pre-tax profi t of K2.7 billion (approximately US$1 billion) and contributed 32% of PNG’s export earnings (OTML, 2009 ). It is also a major employer within the Western Province, and PNG as a whole, with a directly employed workforce of about 2000 people, of whom 95% are PNG nationals, and an additional 1500 or so people employed through contractors working for the mining operation.
    [Show full text]