THE POLITICS OF MINE CLOSURE AND SUSTAINABLE DEVELOPMENT AT THE OK TEDI MINE, PAPUA NEW GUINEA By Phillipa Catherine Jenkins August 2016 A thesis submitted for the degree of Doctor of Philosophy of The Australian National University. RESOURCES, ENVIRONMENT AND DEVELOPMENT PROGRAM CRAWFORD SCHOOL OF PUBLIC POLICY ANU COLLEGE OF ASIA AND THE PACIFIC THE AUSTRALIAN NATIONAL UNIVERSITY AUGUST 2016 ii Declaration I, Phillipa Catherine Jenkins, declare that this thesis, submitted in fulfilment of the requirements for the award of Doctor of Philosophy, in the Resource, Environment and Development Program, Crawford School of Public Policy, ANU College of Asia and the Pacific, Australian National University, is wholly my own work unless otherwise referenced or acknowledged. This thesis has not been submitted for qualifications at any other academic institution. Signed___________________________________________________ Date 26/08/2016 © August 2016 Phillipa Catherine Jenkins iii Acknowledgements I am appreciative to the many people who assisted me during my doctoral candidature. Firstly, I am greatly indebted to my supervisors Colin Filer and John Burton. The passing onto me of some of their extensive knowledge of PNG resource development and their encouragement of the project are greatly appreciated. Edward P. Wolfers’ enthusiasm for PNG continues to inspire me, and I appreciate greatly his enduring interest in my project. I also acknowledge the support of staff in Resource Management in Asia Pacific Program (now Resources, Environment and Development), especially Alison Francis. My research was funded through an Australian Postgraduate Award from the Federal Government, while RMAP provided fieldwork funding and Ok Tedi Mining Limited provided accommodation, transport, and food in Tabubil. I am eternally grateful to the management and workers of Ok Tedi Mining Limited for supporting my research. General Manager External Relations Musje Werror and the Community Relations Department welcomed me to the area and facilitated my research in myriad ways. I feel very privileged to have been allowed access to the Community Relations and Mine Closure Planning Departments, and see how they interact with the communities on a daily basis. I especially thank Yaru Pohei, Shannon Mackenzie, Ani Topurua, Yon Buhuyana, Jeff Ransley, Joe Boikoun, Leo Duba, Jane Wiyawa, Monty Awanim, and Joe Samar. Merikas Timori and Michael Namalok are the two people who I hold in high esteem because of their kindness and willingness to go out of their way to assist me in my research and fieldwork. Ok Tedi Development Foundation also provided great support, taking me out into the field and showing me the work they do. I appreciate greatly CEO Ian Middleton allowing me to use the time of Brian Ilsin and Watson Siarit. Fisheries Officer Tike Kulingim was the warmest, funniest and most encouraging person I met in PNG, and he iv went well out of his way to show me everything that he could of the North Fly. We shared many stories and cucumbers on our long drives up and down the Kiunga Tabubil Highway. In PNGSDP, Patricia Kila and Lawrence Stephens were of great assistance. I also thank Belinda Yapi from OTML, Kori Maraga from Tanorama, and Susan James from Misima for their friendship. I am grateful to my friends and family who contributed greatly to my successful completion of the thesis. My mother Catherine was a constant sounding board for ideas. My dear friends Kieran, Lauren and Bryan, who let me sleep over and talk their ears off, made my visits Canberra enjoyable. My beloved Grubby made me feel not so alone just by always being there. Finally, I would never have been able to complete this doctoral journey without the love of my husband Danny, who always supported and encouraged me, even though he was fearful for my safety and sanity. v Abstract This thesis is about the Ok Tedi mine in Papua New Guinea. Throughout the literature on mining and communities, there is a split between the technical and the social. Technical mining – the engineering, environmental, planning and operations – do not ordinarily consider communities beyond the technical aspects of community relations – housing, employment, transport – rather approaching communities in a sanitised, corporate manner. There is plenty of discussion about environmental aspects of mine closure already, but it is important to have an extended discussion and create a space for debate about the roles of mining companies in developing sustainability plans that are for communities, not just the environments they exist in. The Ok Tedi mine has a unique institutional aspect that has grown with the mine – the Ok Tedi Mining Complex – which is inhabited by various governmental and non-governmental organisations. The mine closure and sustainability planning process under the OTMC is unique to Ok Tedi mine, as there is no other mine in PNG that is guided by the same legislation, norms, and cultural frameworks. The OTMC is dominated by the stakeholder relationships of the organisations under its auspices, and the outcomes of these relationships directly affect the outcomes of development planning. This thesis examines the development of the OTMC, and assesses the way it shaped the relationship between the main stakeholder organisations - Ok Tedi Mining Limited, PNG Sustainable Development Program Ltd., PNG national government, Ok Tedi Development Foundation, communities of the Community Mine Continuation Agreement regions, Fly River Provincial Government – has influenced the development of mine closure as a function of sustainability planning, the ongoing funding streams available for programs, and the development and implementation of programs aimed at encouraging sustainable livelihoods. This involves two case studies of livelihood promotion programs – Agriculture and Food Security, and Artisanal and Small Scale Mining. The dissertation is an original contribution to knowledge because there has been no systematic examination of the Ok Tedi Mining Complex as an institution, and there have been significant developments transforming the way that the stakeholder organisations relate to each other concerning mine closure and sustainability planning. vi Abbreviations 10SA Mining (Ok Tedi Tenth Supplemental Agreement) Act 2013 6SA Mining (Ok Tedi Sixth Supplemental Agreement) Act 1986 9SA Mining (Ok Tedi Ninth Supplemental Agreement) Act 2001 ARAMA Alice River Alluvial Mining Association ART Alice River Trust ASM Artisanal and small-scale mining BCL Bougainville Copper Limited BHP Broken Hill Proprietary CAP Community Agriculture Program CD Census Division CMCA Community Mine Continuation Agreement CMCC Community Mine Continuation Consent process CMCEA Community Mine Continuation Extension Agreement CSIP Community and Social Investment Program CSR Corporate Social Responsibility CuCON Copper concentrate slurry DAL Department of Agriculture and Livestock DEC Department of Environment and Conservation DMCP Detailed Mine Closure Plan DMPGM Department of Mineral Policy and Geohazard Management DNP Department of National Planning ECP Evangelical Church of Papua EITI Extractive Industries Transparency Initiative FAF Financial Assurance Fund vii FGF Future Generations Fund FRDT Lower Ok Tedi Fly River Development Trust FRPG Fly River Provincial Government GRI Global Reporting Initiative HNI Historical New Institutionalism ICMM International Council on Mining and Minerals HVDP Highway Village Development Program ITS Interim Tailings Scheme K Papua New Guinean Kina KLMDDA Kiunga Lake Murray District Development Agreement LLG Local Level Government LLGA Local Level Government Area LMP Lease for Mining Purposes LOT Lower Ok Tedi LOTA Lower Ok Tedi Agreement LOTIC Lower Ok Tedi Investment Company LORIT Ok Tedi Royalty Investment Trust LTDS Tabubil Long Term Outlook Development Study MAF Mission Aviation Fellowship MAGMA Misima Alluvial Gold Mining Association MAV Mine Area Villages MCDC Ok Tedi Mine Closure and Decommissioning Code (Part of 9SA) MCM Montfort Catholic Mission MLE Mine Life Extension MML Misima Mines Limited viii MMSD Mining Minerals and Sustainable Development Project MOA Memorandum of Agreement MRA Mineral Resources Authority MRDC Mineral Resource Development Company MROT#2 Mineral Resources Ok Tedi No.2 Limited MRSM Mineral Resources Star Mountains Limited MWMP Mine Waste Management Project MWTP Mine Waste Tailings Project NARI National Agricultural Research Institute NEC National Executive Committee NFRAP North Fly Regional Action Plan NGO Nongovernmental Organisation NOT North Ok Tedi NRRF Non-Renewable Resources Fund NSO Papua New Guinea National Statistical Office Ok Tedi River also known as Wai Tri, Wai Deri, Alice River OTDC Ok Tedi Development Company OTDF Ok Tedi Development Foundation OTFRDP Ok Tedi Fly River Development Program – Trading entity of OTDF OTMC Ok Tedi Mining Complex OTMIAA Ok Tedi Mine Impact Area Association OTML Ok Tedi Mining Limited PA Mining (Ok Tedi Agreement) Act 1976 Chapter 363 PAD Preferred Area Districts Parish Village land area ix PCON Pyrite concentrate (Tailings) slurry PNGSDP Papua New Guinea Sustainable Development Program Limited RESA Mining (Ok Tedi Restated Eighth Supplemental Agreement) Act 1995 SMIT Star Mountains Institute of Technology SML Special Mining Lease SSG Special Support Grant TCS Tax Credit Scheme VDF Village Development Funds VPC Village Planning Committee WCED United Nations World Council on Environment and Development WDC Ward Development Committee WHT Withholding