Dilemmas of Development
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Dilemmas of Development Published by ANU E Press The Australian National University Canberra ACT 0200, Australia Email: [email protected] This title is also available online at http://epress.anu.edu.au National Library of Australia Cataloguing-in-Publication entry Title: Dilemmas of development : the social and economic impact of the Porgera gold mine, 1989-1994 / Colin Filer, editor. ISBN: 9781922144416 (pbk.) 9781922144423 (ebook) Notes: Includes bibliographical references and index. Subjects: Gold mines and mining--Social aspects--Papua New Guinea--Porgera. Gold mines and mining--Economic aspects--Papua New Guinea--Porgera. Porgera (Papua New Guinea)--Social conditions. Porgera (Papua New Guinea)--Economic conditions. Other Authors/Contributors: Filer, Colin. National Research Institute (Papua New Guinea) Economics and Management. Dewey Number: 338.274109953 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the publisher. This edition © 2012 ANU E Press Contents Tables, figures and maps vi Contributors ix Abbreviations x Acknowledgments xi 1. Introduction 1 Colm Filer 2. Social change in the Porgera Valley 19 Susanne Bonnell 3. The economic impact of the mine 88 GlennBanks 4. The landowner relocation programme 128 Susanne Bonnell 5. Gardens and wantoks 160 GlennBanks 6. The next round of relocation 191 GlennBanks 7. Business as unusual 222 Glenn Banks 8. Porgera-whence and whither? 260 Aletta Biersack 9. Evidence of the 'new competencies'? 280 John Burton References 302 Index 313 Tables, figures and maps Tables 2.1 PJV employees by category and place of origin, March 1993 33 2.2 In-patient diagnoses at Porgera Health Centre, May 1992 to February 1993 37 2.3 Causes of death at Porgera Health Centre, May 1992 to February 1993 39 2.4 Community school enrolments by grade in Porgera Census Division, 1993 47 2.5 Female community school enrolments by grade in Porgera Census Division, 1993 48 2.6 Porgera crime statistics, 1992 66 3.1 PJV compensation payments made during 1992 by type 102 3.2 Wages paid to Porgeran employees, 1989-92 106 3.3 Distribution of PJV employment within the Porgera Valley 106 3.4 Porgeran PJV employees by length of service as of 18 November 1992 106 3.5 Cash inputs into the local economy originating with the PJV 108 3.6 Value of contracts by origin of contractors, 1990-92 108 3.7 Household survey statistics, 1992 110 3.8 Sources of income by value and number of recipients, 1992 113 3.9 Percentage of households with particular assets, 1992 116 3.10 Patterns of household investment, 1992 116 3.11 Cash contributions to national elections and traditional exchange, 1992 117 4.1 Relocation survey sample, 1993 138 4.2 Number of relocation houses with more than 12, 8 or 6 residents 139 4.3 Condition of relocation houses 141 4.4 Numbers of people using water tanks 144 4.5 Number of food gardens per relocated household 145 4.6 Toilet facilities of relocation houses 148 4.7 Availability of firewood in relocation houses 149 4.8 Types of marriage before and after relocation 153 4.9 Wives' place of origin before and after relocation 156 5.1 Crop and tree densities in the Porgera area, 1987 168 vi I Dilemmas of Development 5.2 Porgera garden survey data, 1987 168 5.3 Household size and garden numbers in recent surveys 171 5.4 Effect of mine development on land by subclan within the SML, 1993 172 5.5 Percentage of community members consuming food types in the previous 24 hours 174 5.6 Agricultural resources of Apalaka households, 1993 177 5.7 Agricultural resources of Kulapi households, 1993 181 5.8 Differences in economic status by residency type, 1993 186 5.9 Food eaten in the previous 24 hours by residency type, 1993 186 5.10 Percentage of non-Porgerans by community, 1993 186 6.1 Annual value and distribution of cash income for the Kewai community (1993) compared with other parts of Porgera (1992) 201 6.2 Material assets of Kewai households, 1993 204 6.3 Investment patterns among the Kewai and other Porgeran communities 204 6.4 Percentage of Kewai and other Porgeran community members consuming food types in the previous 24 hours 207 6.5 Households with total garden area surveyed in Apalaka, Kulapi and Kaiya 208 6.6 Rates of annual fees payable for the Kaiya LMP 217 7.1 Summary of differences in business activity by area, 1994 240 7.2 IPI shareholding and dividends paid, 1986-90 246 7.3 Typical two-year bus contract budget, 1994 256 9.1 Assessable capabilities in relation to social issues at PNG mining operations 282 9.2 Principal community relations tasks since exploration 293 9.3 Demonstrated capabilities in relation to social issues at Porgera 299 Figures 3.1 PJV compensation payments by quarter, 1987-92 102 3.2 Porgeran and total PJV employment, 1989-92 104 3.3 Numbers of individuals reporting income from different sources, 1992 114 3.4 Value of fortnightly income sources, 1992 114 3.5 Number of people reporting expenditure by category, 1992 118 3.6 Expenditure patterns by value, 1992 118 Contents I vii 4.1 Porgera relocation house plan 133 5.1 Length of residence of non-Porgerans in Porgera, 1993 187 6.1 The main lines of the Kewai clan 197 6.2 Age profile from the Kewai household survey, 1993 198 6.3 Number of Kewai households receiving income from various sources, 1993 203 6.4 Value of Kewai household income from various sources 203 6.5 Expenditure patterns of Kewai households by number of persons, 1993 206 6.6 Expenditure patterns of Kewai households by value, 1993 206 7.1 PJV trade store survey findings, 1990-91 236 7.2 Business turnover by area, 1994 240 7.3 IPI asset and liability levels, and shareholders funds, 1984-93 245 Maps Papua New Guinea, with Porgera highlighted xiii 1.1 Porgera mine impact area 4 5.1 Apalaka garden area, 1993 179 5.2 Kulapi garden areas, 1993 183 6.1 Location of houses in the Kaiya LMP, 1991 195 6.2 Distribution of Kaiya gardens and forest (1991) 210 6.3 Predicted impact of the Anjolek spoil 215 7.1 Areas distinguished in Porgera Business Survey 237 Currency conversion table US dollars per PNG kina, 1988-98 (year end) Year US$ 1988 1.2100 1992 1.0127 1994 0.8485 1996 0.7553 1998 0.4700 The following symbols are used not available zero insignificant n.a. not applicable viii I Dilemmas of Development Contributors Glenn Banks initially became involved in the Porgera Social Monitoring Programme while studying for his doctorate at the Australian National University. He now teaches in the School of Geography and Oceanography at the Australian Defence Force Academy, University of New South Wales. Aletta Biersack has been engaged in detailed ethnographic studies of the Ipili-speaking people since 1974. Her most recent fieldwork in the Porgera area has been primarily concerned with the social impact of the mine. She holds a teaching position in the Anthropology Department at the University of Oregon. Susanne Bonnell was employed by the Porgera Joint Venture from 1989 to 1991, initially in the position of Technical Training Officer (Relocation) and later as Assistant Superintendent (Social Development). Since leaving the company she has worked as an independent consultant on various mining projects in Papua New Guinea, including her two periods of collaboration with Glenn Banks on the Porgera Social Monitoring Programme. John Burton initially became involved in consultancy work for the mining industry while teaching at the University of Papua New Guinea. His more recent work has been carried out under the auspices of his own consulting company, Pacific Social Mapping Pty Ltd. Colin Filer also taught at the University of Papua New Guinea, where he helped to establish the university's business arm (Unisearch PNG), before joining the National Research Institute as the Head of what is now its Social and Environmental Studies Division in 1995. Contents I ix Abbreviations AIDS Acquired Immune Deficiency Syndrome BCL Bougainville Copper Ltd CIC Community Issues Committee CODE College of Distance Education CSIRO Commonwealth Scientific and Industrial Research Organisation DEC Department of Environment and Conservation DTIGSC Department of Trade and Industry Goods and Services Committee EMMP Environmental Management and Monitoring Programme FIFO fly-in/ fly-out HIV Human Immunodeficiency Virus IMF International Monetary Fund IPI Ipili Porgera Investments Pty Ltd LDC less developed country LMP Lease for Mining Purposes LNC Landowners' Negotiating Committee MCH Maternal and Child Health MIM Mount Isa Mines MOA Memorandum of Agreement NYMP National Youth Movement Programme PDA Porgera Development Authority PLA Porgera Landowners' Association PJV Porgera Joint Venture PMV public motor vehicle PNG Papua New Guinea PNGBC Papua New Guinea Banking Corporation. PPYA Porgera Paiela Youth Association PWA Porgera Women's Association RDU Rapid Deployment Unit SEIS Social and Economic Impact Study SML Special Mining Lease STD sexually transmitted disease WEPS Wambao Enga Pii Sikulu WIPS Wambao Ipili Pii Sikulu x I Dilemmas of Development Acknowledgments Glenn Banks wishes to thank Benedict Imbun, formerly Teaching Fellow (now Lecturer) at the University of Papua New Guinea, and the student fieldworkers who assisted in one or more of the questionnaire surveys undertaken in the Porgera area-Londe Powell Imbun, Nick Kakapae, Mogola Kamiali, Jiro Kandoiya, Micheal Leamon, Norit Luio, Garry Sali, John Samboek, and Martin Sabrini. The Environment, Business Development and Community Relations staff of the Porgera Joint Venture provided valuable back-up and assistance on site: particular thanks should go to Nick Currey, Des Fanning, Don Flaganan, Rob Goldsmith, Laurie Martin, Jirn McNamara, Greg McNee, Bill Muntz, Opis Papo, Jonathan Paraia, Fritz Robinson, Charlie Ross, and the inimitable Noel Waiters.