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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. 6, No. 4, July – August 2014, 93 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 ------------------------------------------------------------------------------------ Sale of Gold Ridge mine to Solomons nearly done Radio New Zealand, 29 August 2014 The Australian based owner of the Gold Ridge gold mine in Solomons Islands, St Barbara, has con- firmed the sale of the mine to the Solomons government is being negotiated. The company would not disclose the terms of the transfer, saying negotiations are still underway but it says it would not play any further part in the operation of the mine. The mine has not operated since early April after flooding put it out of action. Earlier this month, the company laid off hundreds of local workers. 2 Editorial Never repeat such destruction The National, 29th of August, 2014 ENVIRONMENT and Conservation Minister John Pundari’s comments earlier this week that Papua New Guinea’s longest river, the Fly, in Western, is so badly polluted that it is ‘gone’ is, although an apt description, not a startling revelation. It is common knowledge that the activities of one of the country’s largest mines, Ok Tedi, in the province’s North Fly district, are solely responsible for the state of the Fly. Pundari condemned the damage done to the river system over the three decades that the mine had been in existence. The Ok Tedi Mine is an open-pit copper and gold mine located near the headwaters of the Ok Tedi River, in the Star Mountains Rural LLG of North Fly. The Ok Tedi River is a tributary of the Fly. Discharges from the mine have caused widespread and diverse harm, environmentally and socially, to the estimated 50,000 people who live in the 120 villages down- stream of the mine. The mine is operated by Ok Tedi Mining Limited (OTML), which is majority owned by the PNG Sustainable Development Program Limited (PNGSDPL). Before 2002, it was majority owned by BHP Billiton – the largest mining company in the world since a merger in 2001. Ok Tedi came into full operations in 1984 after cooper and gold deposits were first sampled in the 1970s. Located in a remote area of PNG, above 2000-metres on Mount Fubilan, in a region of high rainfall and frequent earthquakes, mine development posed serious challenges. The town of Tabubil was built to serve the mining operation. In 1999, BHP reported that the project was the cause of “major environmental damage”. The mine operators discharge 80 million tons of contaminated tailings, overburden and mine-induced erosion into the river system each year. Chemicals from the tailings killed or contaminated fish, which subsequently caused harm to all animal species that live in the area as well as the indigenous people. Some scientists have described parts of the river as a dead zone where plant and animal life has been affected to the ex- tent that the population numbers of aquatic life and the diversity of flora will not be seen again in pre-mining time. The dumping of tailings changed the riverbed, causing a relatively deep and slow river to become shallower and develop rapids thereby disrupting indigenous transportation routes. Flooding caused by the raised riverbed left a thick layer of contaminated mud on the flood plain where the plantati- ons of taro, bananas and sago palm that are the staples of the local diet grow. About 1300 square ki- lometres were damaged in this way. Although the concentration of copper in the water is about 30 times above the standard level, it is still below the World Health Organisation (WHO) standards. Pundari told Parliament on Wednesday that the situation was a lost cause and a plan to build a tai- lings dam was pointless because the damage to the river could not be undone. The problem with Pundari’s remarks is that everyone is already aware of the seemingly irreparable damage wrought on the environment of Western by this miner. What the people deserve to know is what is being done to assist the people of Western move on from this man-made disaster? If the Government, through the minister responsible, has already given up on finding a solution to the problem, then what hope do the people of Western have? Pundari should be looking at ensuring that what happened in Western does not occur in other parts of the country. One should remember that there are several mines in operation in the country and more planned in the short and medium term, so the State, at the very least, should be wary of the risks that are posed on the environment. The rhetoric does not put one at ease though. “What diffe- rence will it make when we have damage already? The livelihood of our people, if any, is gone,” Pundari said. Instead of lamenting the destruction of the Fly, Pundari should be coming up with al- ternatives to rehabilitate the Fly and limit further damage. Of course, the irony is that the state has 3 majority ownership of this mine through the PNGSDP and nothing has been said about closing the operations to protect the people and environment. Porgera mine ‘just as responsible’ The National, 29th of August, 2014 LAGAIP-Porgera MP Nixon Mangape says the Porgera gold mine in Enga is just as responsible for polluting the Fly River as the Ok Tedi mine in Western. He said that outside Parliament yesterday when asked to comment on The National’s front page story yesterday about Environment and Con- servation Minister John Pundari admitting that the Fly River “is gone”. Mangape has been one of the staunchest critics of the Porgera mine, which empties its tailings into the Porgera and Lagaip ri- vers in Enga, and eventually into Lake Murray, Strickland, and Fly rivers in Western. “We don’t have government officers on the ground to monitor all the toxins that are discharged from the mine into the river system,” he said. “The government only gets reports from the mining company (Bar- rick). I don’t think we are safe. “Toxins go straight into the river, into the Strickland, into Lake Murray, and all the fish are gone. Our Porgera River is already polluted.” Mining giant BHP under fire from lawmakers Post-Courier, August 29, 2014 By Gorethy Kenneth AUSTRALIAN miner BHP came under heavy fire in Parliament yesterday with legislators descri- bing the PNG Sustainable Development Program as only a clever ploy. The legislators are claiming the mining giant came up with the program to escape prosecution for massive environmental dama- ge from Ok Tedi mining operations. In 2011 [2001!], the Government of Prime Minister Sir Mekere Morauta, who is now chairman of PNGSDP, passed a legislation that allowed BHP to exit the mine, with a blanket immunity that protected the company from prosecution for the environmental dama- ge. The running of the mine was handed to program company PNGSDP, a company registered in Singapore with majority board members nominated by BHP. The debate, on a statement to Parlia- ment by Prime Minister Peter O’Neill yesterday, was fiery and at times emotional, with calls for Sir Mekere and his appointees to the board to step down voluntarily. The call by the legislators was un- animous – bring BHP to account and return the PNGSDP and the Long Term Fund to the people of Western province and PNG. Former Attorney General Kerenga Kua opened the assault on BHP by calling on the PM to fight the global mining giant, and ensure the fund set up and controlled by third parties be returned to the in- dependent state of PNG. "The setting up of PNGSDP and the long term fund is typical of global multinational corporations around the world, setting up complicated structures to escape responsibi- lities for damages they do to the environment and the lives of people," Mr Kua said. "The real issue was the massive damage done to the environment by its mining activity, and the potential massive 4 liability they faced. "They forced us into a clever deal, so that Parliament gave them immunity upon exit. But they did not live up to their part of the bargain by paying the compensation they promised. They instead met us halfway, by setting up this fund overseas and placed it in the hands of indepen- dent nonelected people who represent no one and report to nobody." Mr Kua said BHP and PNGSDP do not need to be compensated. What the government has started, in removing BHP’s immunity from prosecution, and the legal battle against PNGSDP is part of a process to undo a clever and complicated structure. "The Prime Minister and government have my support to get to the bottom of this, and to return to the State what it deserves," he said. Public Ser- vice Minister Sir Puka Temu, who was a member of the Eminent Persons Group that negotiated without success with Sir Mekere’s board, told Parliament in one of those meetings he almost leaned over to punch Sir Mekere. "We were genuine and we made concessions to PNGSDP. But Sir Meke- re and his group were not. I don’t know who they represent.
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