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Porgera Riverine Disposal Case Study

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Porgera Riverine Disposal Case Study Mining, Minerals and Sustainable Development April 2002 No. 68b Mining for the Future Appendix I: Porgera Riverine Disposal Case Study This report was commissioned by the MMSD project of IIED. It remains the sole Copyright © 2002 IIED and WBCSD. All rights reserved responsibility of the author(s) and does not necessarily reflect the views of the Mining, Minerals and MMSD project, Assurance Group or Sponsors Group, or those of IIED or WBCSD. Sustainable Development is a project of the International Institute for Environment and Development (IIED). The project was made possible by the support of the World Business Council for Sustainable Development (WBCSD). IIED is a company limited by guarantee and incorporated in England. Reg. No. 2188452. VAT Reg. No. GB 440 4948 50. Registered Charity No. 800066 I–1 Contents 1 Introduction................................................................................................................3 2 Overview ...................................................................................................................3 2.1 Physical Setting..........................................................................................................................5 2.2 Socio-Economic Setting ...........................................................................................................5 3 Mining Operations .....................................................................................................6 3.1 Waste Disposal...........................................................................................................................6 4 Environmental Impacts ...............................................................................................8 4.1 Sedimentation............................................................................................................................8 4.2 Water quality............................................................................................................................10 4.3 Biodiversity..............................................................................................................................12 5 Impacts on Communities...........................................................................................13 5.1 Compensation .........................................................................................................................13 5.2 Benefits ....................................................................................................................................14 6 Governance ..............................................................................................................15 References.......................................................................................................................15 Acronyms .......................................................................................................................16 I–2 Mining for the Future 1 Introduction The Porgera mine is an open pit mine located in the Enga Province of Papua New Guinea (PNG), approximately 600 km north-west of Port Moresby (see Figure I1). Porgera is PNG’s second most important mine after Ok Tedi. It is one of the largest gold mines in PNG and Australasia, and was originally one of the world’s major low-cost gold producers. As the mine has matured operating costs have increased. Figure I1. Location of the Porgera Mine Mine waste from Porgera has been disposed of into the Porgera-Strickland River system since the beginning of operations in 1990. Tailings and incompetent waste rock are discharged in the upper tributaries of the Strickland River System. The Strickland River joins the Fly River, which then flows into the Gulf of Papua (Figure I2). Tailings and waste rock from the Ok Tedi mine are also discharged into the Fly River System, via the Ok Tedi. During 1999, approximately 15,400 tonnes per day of ore was processed at the Porgera concentration plant and the tailings disposed of into the Strickland River System. Between 10 and 15 million tonnes of waste rock also enters the Strickland River System annually from erodible waste dumps. 2 Overview The mine is operated by the Porgera Joint Venture (PJV), 50% owned by Placer Dome Asia Pacific, 25% by Goldfields Ltd. of Australia, 20% by Orogen Minerals Ltd (51% PNG Appendix I: Grasberg Riverine Disposal Case Study I–3 Figure I2. The Porgera Mine area and Strickland River System Government owned) and 5% by Mineral Resources Enga Pty Ltd (50% Enga Provincial Government and 50% Special Mining Lease landowners). In 2000, gold reserves at the Porgera mine were estimated to be 78.5 million tonnes of proved and probable reserves, with an average grade of 3.3 grams per tonne. Reserves are estimated to contain approximately 8.3 million ounces of gold.1 The original approvals for the Porgera mine were granted on the basis of an ore processing rate of 8,500 tonnes per day and the disposal of 64,000 tonnes per day waste rock, the majority of which would be contained in stable dumps. In 1993, the company applied for and was granted a variation to the permit, which allowed for an increase in the ore processing rate to 15,400 tonnes per day with a corresponding increase in the discharge of tailings. In 1995, PJV submitted a request for an additional variation to the discharge permit, which allows for an increase in the ore processing rate to 17,700 tonnes per day and the discharge of waste rock to 210,000 tonnes per day. Approximately half of the waste rock would be stored in a stable facility and the remainder disposed of into two erodible dumps. The increased throughput has lowered operating costs and lead to lower cut-off grades and increased metal recovery grades. Plans are to continue disposing of the tailings and incompetent waste into the river; however, studies are exploring the possibility of the co- disposal of the tailings into the stable waste dumps. 1 See Porgera Environmental Advisory Komiti (PEAK) website at http://www.peak-pjv.com (accessed 2001). I–4 Mining for the Future 2.1 Physical Setting Porgera mine is located in the PNG highlands, about 130 km north-west of Mount Hagen, at an altitude of 2,800 m. The area is subject to seismic activity, landslides and high rainfall. The terrain is covered in rain forest (CSIRO, 1996). Figure I2 shows the position of the mine within the Strickland River System. Precipitation averages 3,650 mm per year, occurring over 300 days in the year. Temperatures range from 10–25 °C. The area is prone to landslides and a high rate of erosion, caused by the abundant rainfall and very soft, easily erodible mudstone. This is further aggravated by frequent seismic activity. These factors result in naturally high sediment loads in the Strickland River System. The tailings and incompetent waste rock enter the Porgera River, which joins the Lagaip River and then merges with the Ok Om and becomes the Strickland River. The Strickland River then joins the Fly River and flows out into the Gulf of Papua. The distance from Porgera to the Gulf is approximately 1,000 km. Lake Murray is connected to the Strickland River via the Herbert River which can exhibit reverse flow. This River System (referred to as the Strickland River System in the rest of the text) flows across steep terrain in the upper reaches. The waters are turbulent and fast flowing in this section of the River System. After the confluence of the Herbert River, in the lower reaches of the River System, the terrain is flat and the flow is relatively slower. Fish populations appear to be naturally small in the high altitude rivers near the mine site, (CSIRO, 1996). Dominant species in the Lagaip River and the Ok Om are mountain tandans (Neosilurus equinus), and freshwater prawns (Macrobrachium). In the lower Strickland River, fish populations are larger. Sharp-snouted catfish (Arius macrorhynchus) and fork-tailed catfish (Cinetodus crassilabris) are the most abundant species. Lake Murray’s most abundant aquatic species is the barramundi (Lates calcarifer) (PJV, 1999a). Other animals in the area used as food sources include pigs, possums, tree kangaroos and pythons. Agricultural food sources include sweet potatoes, bananas, taro, sago, and tapioca (CSIRO, 1996). 2.2 Socio-Economic Setting Today, approximately twelve thousand people, belonging to seven different tribes, live in the area around the Porgera Mine. The main communities are the Paiela, the Paiam, the Karik and the Tipininni. Over 2000 people live in the villages on the River System downstream of the mine. (CSIRO, 1996) Villages potentially affected by riverine disposal of tailings and waste rock include: Wankipe, Sisimin, Waiki, Yokona, Tinahae, Omami, and Komagato in the upper River System, Kusikina, and Miwa in the Lake Murray vicinity, and Dwale (Igibera), Udugumbi, and Ugaiumbu (Tiumsinawam) in the lower River System (CSIRO, 1996). Appendix I: Porgera Riverine Disposal Case Study I–5 In the upper region of the Strickland River System, the general health of the population is poor. Common diseases (not related to the mine) include hyperendemic malaria and filariasis. Skin infections, childhood malnutrition (<5 years old) and infant mortality are also widespread. Many of the same ailments are found in the communities of the lower regions of the River System. (CSIRO, 1996) 3 Mining Operations Exploitation of the underground mine at Porgera ceased in 1998 and ore is now extracted using conventional open pit mining techniques. In 1999, approximately 69.2 million
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