Press review: Mining in the South Pacific Vol. 4, No. 3, May – June 2012, 105 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.eastwestcenter.org/pireport/graphics.shtml PNG Post-Courier: http://www.postcourier.com.pg PNG The National. http://www.thenational.com.pg ------------------------------------------------------------------------------------ Australian Company Granted Iron Sands Mining Lease In Fiji 21-year lease permits Amex Resources to dredge Ba River MELBOURNE, Australia (Radio Australia, June 28, 2012) – Australian mining company Amex Resources has been granted a 21-year mining lease to extract iron sands from 120 square kilometers of shallow water in and around the Ba River delta. Managing director Matthew Collard says the project will employ around 300 people. He says Amex has not asked for tax concessions and will pay the standard royalties and corporate taxes to the Fiji Government. "There is a 3 percent export royalty that the company must pay once we are exporting the product and then, at this moment in time, we are obligated to the 20 percent corporate tax, as every other entity," he said. "We haven't proceeded into any incentives, or tax incentives at this stage. We've just been focused on getting all our approvals through so that we can get into the construction phase." Mr. Collard says extracting the iron sand will be a very simple operation. "We are a dredging operation, so very similar to pre- vious exercises around Fiji when they have used it for flood mitigation in the river systems," he said. "We'll be dredging up the sand and the only difference is that we will have a floating concen- trator behind our dredge. 2 "That dredge will be extracting the iron minerals and once we've extracted the iron minerals, we'll be depositing the remaining sand back into the sea floor and then transporting the iron in a transport barge 30 kilometers to the Lautoka Port, where it will be stockpiled and loaded onto a handimax vessel, more likely to be destined for China." Mr. Collard says Amex will follow the New Zealand model for iron sand mining. "I think the benchmark for iron sands production is definitely New Zealand. They have been doing it for many decades now and have set the standard," he said. "They are a high quality iron sands producer. Ba delta, once we have the project up and running, the scheduled production rates are not too dissimilar to New Zealand's operation at the moment so it will place the Fijian operation up there as one of the larger iron sands producers." Mr. Collard says it has obtained environmental approval for the mining project to start. "The river system and man- aging it, and making sure we do not cause any further damage to the reef is important to us. "We have engaged a local environmental consultant who is highly regarded in Fiji and he will be respon- sible for the continued monitoring of the mining operation." Tolokuma mine resumes operation Post-Courier 28.6.2012 By PATRICK TALU TOLUKUMA Gold Mine (TGM), the 100 percent nationally owned mine has resumed operation on Wednesday afternoon after aggrieved landowners lifted the taboo placed on the mine ten days ago. After two days of negotiation between Patromin PNG Holding Ltd (Petroimin) as the owner of TGM, Mineral Resources Authority (MRA) as a stakeholder and the Yulai Landowners Association (YLA), the landowners removed the plant through their own Goilala customary procession, a way of reversing the taboo placed to stop the mine’s operations. The lifting of the taboo was after Petromin and YLA entered into a special agreement to address the landowners’ grievances mutual- ly. Among the requests Petromin made commitment to; give 5 per cent equity in the mine consistent with government’s mining policy and also to look at seting up a business development office sub- ject to establishing a mechanism as to how the landowners can have 50 per cent interest of all con- tracts in TGM. Petromin through its managing director and chief executive officer Joshua Kalinoe also agreed to pay all outstanding payments including a K600,000 for YLA; set a desk for YLA at TGM office in Port Moresby and pay other outstanding financial obligations for the exploration activities incurred. The MD also agreed to have direct communication with YAL and look at building capacity and training for mine area workforce while making commitment to review working condition for gen- real Papua New Guinean workforces as part of Petromin’s human resources policy review. He also commited to work with the State to look at the Tolukum Access Road to Port Moresby. As a party to the special agreement YLA chairman George Gusi and his chiefs representing three major clans agreed to acknowledge Petromin as the 100 per cent owner of TGM and also agreed to work closely with Petromin and TGM management team to protect the commercial interest of the mine. Mr Gusi also apologised to Mr Kalinoe, his senior Petromin management team and MRA’s mining coordina- tor Pelis Watnabar for the mine closure and all the loss incurred. Mr Kalinoe said,” Petromin learned a valuable lesson. What happened is history. Don’t lean too much on history and live the past because the past will destroy the future. Let’s find a way forward to develop the mine,” Mr Kalinoe said. Mr Kalinoe who is also a director on the TGM Board expressed confidence in the current TGM management team headed by acting general manager David Laulau and his senior team at Petromin with the likes of Lyndah Brown-Kola (Acting General Manager Minerals) and Sam Inguba (General Manger Corporate Services) to lift TGM to a next level. The reopening min- ing proceeded with a pig killing and exchange of betel nuts between Petromin and YLA chiefs be- fore removing the taboo marking the resumption of mine’s operation. Mr Kalinoe will fly into 3 Tolukuma today and personally deliver the K600, 000 and a K50,000, part of the K100,000 cash gift as part of the customary peace ceremony while the next K50,000 will be paid next month. Ok Tedi Development Fund celebrates successful 2011 The National, June 27th, 2012 OK Tedi Development Foundation (OTDF) has enjoyed a successful 2011 despite the many chal- lenges that were faced, according to chairman Musje Werror. Werror said in OTDF’s 2011 annual report that these challenges included building trust among mine-impacted communities while at the same time establishing itself as a stand-alone entity operating at arm’s length from Ok Tedi Mining Ltd (OTML). “I am proud to say that the efforts and commitment by the OTDF team, with support from OTML and PNG Sustainable Development Program (PNGSDP) are starting to build a genuine partnership through a shared purpose with the mine-affected communities and the Fly River pro- vincial government (FRPG),” he said. “Through the partnership of the CEO, Ian Middleton and his executive team, we are now beginning to realise the true meaning of sustainable development, and how it makes a tangible difference to the lives of the people impacted by the Ok Tedi mine, fulfil- ling their hopes and dreams for the future.” Middleton said a restructure in 2009 enabled OTDF to operate independently of OTML. “The company established an ambitious portfolio of community- orientated programmes and projects for delivery to the Community Mine Continuation Agreement (CMCA) people, whose lives have been impacted by mining operations,” he said. Tolukuma mine to resume operation Post-Courier 27.6.2012 By PATRICK TALU at Tolukuma THE Tolukuma Gold Mine (TGM) in the Central province is expected to be reopened this morning (Wed) after its operation has been closed down for 9 days due to outstanding mine related landown- er issues. George Gusi, Chairman of Yulai Landowners Association (YLA), the umbrella associa- tion representing three major clans from the Tolukum mine area assured Petromin Managing Direc- tor Joshua Kalinoe and his management team and representative from the Mineral Resources Au- thority (MRA) yesterday at the mine site that the mine will resume operations after the taboo placed at the entrance of the mine is removed this morning in a traditional ceremony. Mr Gusi’s assurance came after Mr Kalinoe’s appeal to YLA to lift the taboo placed last early week; a Goilala custom in which traditional trees are planted at the gate or entrance of building premises to disallow trespass- ing. After a successful two days negotiations with the landowners, Petromin and MRA team, the land- owners have finally agreed to remove the taboo for the mine to commence operation immediately on the condition that Petromin adhere to their demands. Mr Gusi with the clan chiefs presented the demands to Mr Kalinoe at the mine site witnessed by local landowners, local workers, and the dele- gates from Port Moresby and other hired workers. YLA demanded among others that: Petromin and the State honor the Memorandum of Agreement (MOA) obligation as well as other socially respon- sible impact projects outside of the MOA. These includes immediate payment of outstanding K600, 000 to YLA, access road from TGM to Port Moresby as well as improving working condition of both local and other Papua New Guinea employees. Whatever issues that need immediate response, they must be responded immediately so as not to delay the resumption of mine operation.