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Press Review: Mining in the South Pacific

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Press Review: Mining in the South Pacific Press review: Mining in the South Pacific Vol. 4, No. 4, July – August 2012, 140 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 PNG Mine Watch: http://ramumine.wordpress.com/ ------------------------------------------------------------------------------------ SPC defends criticisms against regional framework on deep sea mining By Makereta Komai, PACNEWS Editor in Rarotonga, 31.8.2012 The Director General of the Secretariat of the Pacific Community (SPC), Dr Jimmie Rogers has de- fended criticisms leveled at the regional legislative and regulatory framework for Deep Sea Mining (DSM) launched in Rarotonga at the margins of the Pacific Forum Leaders meeting Tuesday. A co- alition of regional civil society groups had earlier in the week called for a moratorium on deep sea mining activities in the Pacific until all risks and uncertainties are properly analysed. The civil soci- ety groups sought legal opinion from the U.S Office of the Environmental Law Alliance Worldwide to provide clarity on the appropriate level of action that must be undertaken by Pacific governments to meet their national obligations on the ‘precautionary’ principle in seabed mining. Dr Jimmie Rodgers does not agree with the interpretation of the civil society groups. “The regional framework provides our countries and territories of the Pacific a set of tools that will allow them to 2 assess, firstly do we want to engage in deep sea mineral mining, if the answer is yes, what are the steps we go through. “For any legislation to work, it must have a regulatory framework, similar to what we are recommending. We are saying, if you do this, these are benefits and you have to make sure there are safeguard mechanisms to protect your resources. Dr Rogers said the DSM framework is a tool that enables countries to engage in the development process of the legislative framework. “Most of them don’t have that. This is our concern, if commercial companies come into the region and push the agenda for mining, our resource owners might see and love the dollar sign and agree to allow companies to come in without any legislative base. The SPC head argued the new regional framework will allow Pacific countries and territories to think through their options before developing a legislative and regulatory framework for deep sea mining activity. “Our agenda is to enable countries to be knowledgeable and have the tools they re- quire to think through the process. And if they want to engage, they should know who they want to be engaged with at the national level, with NGOS, civil societies, churches, governments and indus- tries. Dr Rogers assured the DSM framework launched by Pacific Forum Leaders was developed with stakeholders. “I understand these NGOs are here. I’d like to talk to them because I think we are operating at two different levels. I don’t think we necessarily disagree with the principles they are saying that should be safeguarded, they are in the framework. “Their concerns are real. I am not belittling their concerns but I think they can be too closed shop and not opened to looking at what the framework is trying to achieve – to enable the countries to develop. “Let me pose these questions – would these NGOs prefer that Pacific Island Countries don’t have any legislation and commercial companies walk in, offer money and buy off the miner- als? “I don’t think so, and if what I think is what they want, then the framework provides a protec- tion, said Dr Rogers. The framework was launched by Dr Rogers and Cook Islands Deputy Prime Minister, Tom Masters in the presence of a number of Pacific Islands Forum Leaders. Cook Islands lead the push for deep sea mining By Makereta Komai, PACNEWS Editor in Rarotonga, 31.8.2012 Cook Islands is one of the first countries in the world to enact the Seabed Minerals Act 2009, which will commence in March 2013. Launching the regional legislative and regulatory framework for deep sea mining in Rarotonga this week, Deputy Prime Minister, Tom Marsters said the Act was designed to regulate any future sea bed mining activities within Cook Islands exclusive economic zone (EEZ), in particular the island’s huge manganese nodules resource. “I believe now, as ever be- fore, it is very exciting time to be a Pacific Islander. We are sitting in a region that is looking to grow, develop and be part of an emerging deep sea minerals industry, both in national and interna- tional jurisdiction. “Indeed, the opportunity these previously untapped resources may present, for improving economic well being of our Pacific people was once just a dream our past leaders and that dream I believe is fast becoming a reality. However, with all the excitement, DPM Marsters called for caution. “We would not want to do any- thing today that will ruin the lives of our children and grandchildren, in cultural, social, environ- mental and economic terms. He called on all Pacific Island Countries and Territories to ‘enter this new seabed mineral frontier with common standards and best advice available.’ The proposed re- gional framework for deep sea mining seeks to provide Pacific Islands with tools necessary to make a decision about whether or not to engage with the emerging deep sea mining industry. In 2009 Pa- cific Leaders at their meeting in Cairns called for the development of a regional framework on sea bed mining to allow countries to realize the economic benefits from their marine mineral resources, while supporting the environmental monitoring that preserves fragile marine ecosystems and biodi- versity. 3 Nautilus Minerals-PNG set to begin operations Post-Courier 31.8.2012 By Gorethy Kenneth NAUTILUS Minerals-PNG has spent more than $US400 million (K820m) so far on their operation since inception in Papua New Guinea and is likely to spend another $US400 million to bring the project into production. And the company has agreed to form an unincorporated mining joint ven- ture with the State of PNG through its nominee Petromin PNG Holdings Limited. The State of PNG has exercised its option to take a 30 percent stake in the Solwara 1 Project and other assets within the Mining Lease (ML154) area. Nautilus Minerals-PNG boss Mel Togolo said this yesterday, add- ing that the company would kickstart its three-year operation hopefully by the end of 2013. Report- ers in Port Moresby were taken on a conference presentation by Mr Togolo and Chief Operating of- ficer Anthony O’Sullivan, specifically on the awareness of the project and its impact. They were given an outline of the whole operation in PNG and abroad – Vanuatu, Tonga, New Zealand and Solomon Islands. Both executives stressed that Nautilus Minerals has met world-class standards and that its sea floor production was safe and environmentally friendly. They said this project was different from the rest, adding that it would help generate money for the people of PNG. “Any money we make, any divi- dend to be declared, 30 per cent of that dividend will go to Papua new Guineans. And this is very important, because then our Government will use that money to build schools, hospitals, aid posts, teacher’s houses, roads and bridges,” Mr Togolo said. “We are probably the biggest country in the South Pacific but we have lots of demand on our leaders to deliver goods and services and our lead- ers depend on businesses also helping in terms of taxes to the Government to implement the de- mands of our people. “…in our discussion, our awareness with the communities, we’ve listened to their concerns. The main concerns were from the fisheries, they want their fish to be protected. They also want their reefs to be safe…we’ve designed the delivery system to make sure that…probably no impact on fish stock or low impact on marine fish…we are out in the big ocean…. “This project, when in operation, will not impact on the reefs at all. We are operating 1600 metres deep, there are no fish down there…fish only live on the top warm water where there’s oxygen, so fish will not be affected. “We will deliver this project at the end of next year, but there may be some delays and we are still looking at the end of next year or early 2014. “This project is a bit different from the rest and the life span of the project is about three years, but we are looking at others close by, that’s why we can move the ship from this one to the other. “We are going there to make sure it is profitable and the shareholders are rewarded because they are putting money. “Nautilus Minerals will commence its seabed mining operations hopefully at the end of 2013. It has spent $US400 mil- lion and expects to spend another $US400 million to get the project to production stage,” he said. Mr Togolo said that there are positive issues also surrounding the company and they included: The exploration of territorial waters of PNG since 1997, when the first offshore mineral exploration license was granted; Nautilus and PNG are leading the world in the exploration of seafloor massive sulphide (SMS) deposits; - Different risk profile to oil and gas; - Compared to land-based counterparts: Smaller physical footprint; - Training in state-of-the-art techniques under the supervision of world renowned deep sea ecol- ogists; - No direct impact to (human) communities; - Supporting Education and so far, four PNG Nationals have been awarded a chance to study at Duke University (USA); - About 15 per cent of Nautilus full time employees are PNG Nationals (as of April 2012); and 4 - Nautilus’ ultimate goal is for project workforce to be PNG Nationals.
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