In Mining Agreements in Papua New Guinea: the Case of Hidden Valley/Hamata Mine
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An Analysis of the Concept of ‘Sustainability’ in Mining Agreements in Papua New Guinea: The case of Hidden Valley/Hamata Mine A thesis submitted in partial fulfilment of the requirements for the degree of Master of Social Science in Public Policy at The University of Waikato by Bernard Esonu _________ The University of Waikato 2009 ABSTRACT This thesis examined the way in which notions of economic, social and environmental sustainability were addressed in mining agreements in Papua New Guinea (PNG), through a case study of the Hidden Valley/Hamata mine. The thesis offered a discussion of indigenous and western perspectives on economic, social and environmental perspectives and practices. It then developed a model of sustainable development drawn from the scholarly literature and applied it to the case study. The thesis explored the extent to which principles of sustainable development were incorporated into the mining agreement, as well as in negotiations amongst key actors. The study analysed key documents relating to sustainable development in PNG, including relevant national legislation and the memorandum of agreement negotiated amongst the principal actors in the Hidden Valley/Hamata mine. In addition, interviews and focus groups with the main participants in the Hidden Valley/Hamata case were also analysed. The analysis revealed significant deficiencies in the understandings of issues around sustainable development among all actors, which affected the negotiations of the mining agreement. The dominant concern for all actors, reflected in the analysis of documents and interviews, was economic. Furthermore, indigenous perspectives on sustainability were not given a hearing in the negotiations. The study demonstrated that the major power differences between government and the mining company, on the one hand, and the landowners, on the other hand, prevented meaningful participation of the affected villagers in the negotiation process. The contradictory role of the state as both the regulator of the mining company and its partner in the mining development, along with a lack of awareness about issues of sustainable development, adds to the difficulty of implementing the provisions of the Environment Act. The thesis concludes by developing an analytical framework for negotiating sustainable development in mining agreements through incorporating indigenous and western perspectives ii and practices of economic, social and environmental sustainability in development projects. The significance of this research is that it addresses a gap in the literature on sustainable development with specific reference to mining in PNG. It offers insights into the negotiation process of mining agreements and offers a framework for negotiating sustainable development in practice in the future. iii ACKNOWLEDGEMENTS An academic journey that results in a thesis of this nature could never be completed without the involvement of many people. Foremost are my two supervisors, Associate Professor Priya Kurian and Dr. Patrick Barrett, who were challenging, inspiring and encouraging. They have helped me tremendously throughout this academic endeavour. I owe them a great deal. I also would like to record my appreciation to the New Zealand Government for awarding me a NZAID scholarship to do my Masters. Without this support, I would not have been able to undertake such a study. I also would like thank Professor David Kavanamur and Professor Albert Mellam of the School of Business Administration, University of Papua New Guinea, for providing financial assistance for hiring car and for accommodation in Lae and Wau during my research trip in Papua New Guinea. I also extend my appreciation to Dr. Lawrence Sause, Mr. Danny Aloi, Mr. Elly Kinkin, Mr. Leo Marai, and Dr. Terence Laufa for their words of encouragement and support, and being helpful in a number of ways. I also owe a great debt of gratitude to the participants in this study, particularly to Mrs Aigie Mulai for arranging a vehicle and providing me accommodation in Kwembu village enabling me to continue with this research. Without the willingness of the people to participate in this research, this thesis would be deficient in detail. I also am grateful to my research assistant Mr. Graham Kesa, and to Mr. John Lape for providing me accommodation during my short stay in Port Moresby. I am thankful to Andrew Hoffmann and Irene Ismael for having useful discussions with me about my study. They helped me a lot in many ways in my stay in New Zealand during the time of study. Thanks also to Mr. Alosina Faumui for kind assistance and support in many ways. iv Lastly, I owe much to my wife Khee and son Raynold for being patient with me while I was writing this thesis. I would also like to pay a special tribute to my dad, as he is not alive to witness the end product of this academic journey. I appreciate your hard work in my life, as without your support, I would not be where I am today. v TABLE OF CONTENTS ABSTRACT ............................................................................................................ ii ACKNOWLEDGEMENTS ................................................................................... iv TABLE OF CONTENTS ....................................................................................... vi LIST OF FIGURES ............................................................................................... ix LIST OF TABLES .................................................................................................. x ABBREVIATIONS ............................................................................................... xi CHAPTER 1 INTRODUCTION ....................................................................... 1 1.1 Background to research ................................................................................. 1 1.2 Brief background of Papua New Guinea ...................................................... 5 1.2.1 Landownership conflicts in mining in PNG .......................................... 6 1.2.2 Mining and environment in Papua New Guinea .................................... 8 1.2.3 Mining and development in Papua New Guinea.................................. 10 1.3 The research, its rationale and significance ................................................ 11 1.4 Methodology ............................................................................................... 14 1.5 Brief outline of the thesis ............................................................................ 15 CHAPTER 2 THEORETICAL FRAMEWORK AND METHODOLOGY ........ 17 2.1 Introduction ................................................................................................. 17 2.2 Sustainable development ............................................................................. 17 2.3 Environmental security ............................................................................... 21 2.4 Perspectives on sustainability ..................................................................... 22 2.5 Analysis of sustainable development model ............................................... 28 2.5.1 Normative values ................................................................................. 28 2.5.2 Economic systems ................................................................................ 30 2.5.3 Knowledge base ................................................................................... 30 2.5.4 Key actors............................................................................................. 31 2.5.5 Community participation ..................................................................... 32 2.6 Methodology ............................................................................................... 34 2.6.1 Methods used ....................................................................................... 34 2.6.2 In-depth interview ................................................................................ 36 2.6.3 Focus group interview .......................................................................... 36 2.6.4 Data analysis ........................................................................................ 37 2.6.4.1 Interview analysis.......................................................................... 37 2.6.4.2 Document analysis ........................................................................ 38 2.6.5 Limitations of the methods used .......................................................... 38 2.7 Summary ..................................................................................................... 39 CHAPTER 3 SUSTAINABLE DEVELOPMENT IN PNG: AN ANALYSIS OF KEY DOCUMENTS ............................................................................................