Study confirms Golpu as world-class project

By MALUM NALU

Wafi‐Golpu joint venture participants, Harmony and Newcrest, yesterday announced a significant upgrade to the ore reserve estimate for the Golpu copper-gold deposit located in Morobe province, following the completion of a technical pre‐feasibility study (PFS).

The PFS supports an updated ore reserve estimate containing 12.4 million ounces of gold and 5.4 million tonnes of copper.

The study also confirms Golpu as a world‐class deposit with an expected mine life of more than 25 years. 

The nearby Wafi gold deposit is in concept study, with progress to PFS likely to occur later this calendar year.

The Wafi-Golpu project area in Morobe province.-Nationalpic by MALUM NALU

 “The PFS proposes that the Golpu deposit be mined via a large, long life, deep underground mine using the block caving method,” according to a statement from Morobe Mining Joint Ventures.

“It proposes that the ore be treated by flotation to produce a copper-gold concentrate which would be piped to storage facilities where it would be dewatered prior to loading onto ships for transport to smelters in the region.

“Various options have been identified for key infrastructure including tailings storage sites, power generation options and ship loading facilities.

“These will require further investigation and stakeholder engagement during the feasibility study phase which could take around 24 months to complete.

“The capital cost is estimated at K 10 billion to establish the mine and achieve first commercial production, which is anticipated around 2019.

“The PFS sets out a sustainable development approach focusing on people, environment, social environment and health and safety.

“Before the project proceeds to feasibility study status, the joint venture participants will be engaging extensively with key stakeholders including all levels of government and landowner representatives to ensure alignment on the project development and key elements of the next phase of work.”

Subject to the satisfactory resolution of these outstanding matters, Newcrest and Harmony anticipate they will progress the Golpu project into the feasibility study phase during the first half of calendar 2013.

In the meantime, further study work will occur. 

Joint venture participants, Harmony and Newcrest said: “This is an exciting project and we are keen to progress it to the next phase following further consultation with stakeholders to ensure alignment.”

Lihir gold mine reopens

By MALUM NALU

Operations at the giant Lihir gold mine in New Ireland province resumed at 8.30pm last night after Lihir Mining Area Landowners Association (LMALA) resolved outstanding issues with Newcrest Mining Ltd.

Lihir mine, one of the biggest in the world and the subject of a $US1.3 billion expansion, was shut down by protesting landowners at 12.45pm last Sunday, who placed traditional “gorgor” leaves around the mine site.

• A notice of intention to place “gorgor” was issued to Newcrest at 11am last Friday demanding: LMALA integrated benefits package (IBP) budget of K2.5 million be paid within the period of 48 hours; 
•    LMALA interim administration budget of K24 million was agreed to until the IBP review was completed;
• Address of specific outstanding issues; and
• Newcrest CEO Greg Robinson must meet Lihir leaders on the island.

The 48-hour notice lapsed on Sunday with landowners shutting down operations to the Putput plant site, mine pit and Kapit stockpile.

Newcrest country manager, Peter Aitsi, told The National from Lihir at 9pm last night that the dispute was resolved after an all-day meeting.

“Both parties have resolved the dispute,” he said.

“Operations have returned to normal as of 8.30pm.”

LMALA chairman Peter Suar said Newcrest released the K2.5 million to him yesterday, while discussions on the K24 million would continue today (Wednesday).

He said Newcrest had also agreed to release another K30 million plus interest which had accumulated since 2007.

“Newcrest has agreed to release the first installment of K6 million to LAMLA,” Suar said.

“The rest will be paid in monthly installments.”

Rumours of the unrest sent Newcrest stock down 4.9% in early trading on the Australian Securities Exchange yesterday and were most recently trading 3.6 lower at $26.21.

Newcrest produced 31,350 troy ounces of gold from Lihir in the 12 months to June 30, accounting for almost one-fifth of the company's total gold production during the year.

Lihir mine shuts down

By MALUM NALU

Settle all outstanding issues, say landowners

LANDOWNERS in New Ireland province have shut down the giant Lihir gold mine over outstanding issues with Newcrest Mining Ltd, The National reports.
Lihir Mining Area Landowners Association (LMALA) chairman Peter Suar said from Lihir last night that they had shut down all mine operations at 12.45pm on Sunday by placing the traditional gorgor plant around the mine site.Operations at the Putput plant site, mine pit and the stockpile area at Kapit remained suspended.It is understood that Newcrest officials from PNG and Australia were on their way to the island for talks with representatives from LMALA, Nimamar local level government, Lihir Agreements Review Independent Committee and state representatives (including the Minerals Resources Authority).
Landowner representatives had warned that if the current concerns of landowners were not addressed positively, the immediate future of the intergrated benefits package negotiations would be under threat.
Suar confirmed that operations at the mine remained closed.
“We are doing it professionally and peacefully, with no harm to the public or property.
“We have been patient for a long time. Our birthright is gone.”
Newcrest country manager Peter Aitsi said from Lihir last night that the company would be meeting with landowners today.
“We are hoping to deal with the issue tomorrow (today),” he said.
A notice of intention to place “gorgor” was issued to Newcrest at 11am last Friday demanding that:

• The LMALA integrated benefits package (IBP) budget of K2.5 million be paid within 48 hours;
• The LMALA interim administration budget of K24 million is agreed to until the IBP review was completed;
• Specific outstanding issues to be addressed; and
• Newcrest chief executive Greg Robinson must meet Lihir leaders on the island.                        

    Suar said the gorgor was placed due to the “continuous arrogant attitude” of the developer in not addressing LMALA IBP budget, LMALA administration budget and specific issue agreements of the affected areas within the special mining lease.The 48-hour notice lapsed last Sunday with landowners shutting down operations to the plant site, mine pit and stockpile area.
Suar said Newcrest offered landowners a K2.5 million cheque on Sunday but they refused it.
“Stage two of the action would be to shut down the Londolovit weir where water is sourced to supply the gold processing plant, and stage three is to shut down the Kunaye airport and geothermal.”
Suar said the gorgor would remain until they met Newcrest general manager PNG and Indonesia, Brett Fletcher, PNG country manager Aitsi, operations manager Andy Holdings, lawyer Rob Maloney, IPB review chairman Sir Brown Bai and national and provincial government officials.
“We will meet with Newcrest tomorrow (today) at 1pm,” Suar said last night.
“The company wanted to meet with LMALA officials today but the leaders wanted a formal meeting tomorrow.

Today's buai pekpek in Port Moresby

Today was a public holiday - National Covenant Day - however, it was just another day in Port Moresby, with the same old buai pekpek (betelnut shit) all over the place.
If we made a covenant today, it should have been for a cleaner Port Moresby and Papua New Guinea.
Happy buai pekpek!

Along Wards Road between Hohola and Waigani

Ubiquitous buai pekpek outside Mobil Service Station, Waigani

How can we ever control these buai vendors like this one outside BSP Waigani?

Today's buai pekpek in Port Moresby

With a little over two years to go before Port Moresby hosts the 2015 Pacific Games, the Papua New Guinea capital continues to retain its mettle as one of the filthiest capital cities in the world, where people spit betelnut, litter and do anything they want with no sense of ownership whatsoever.
Here are some pictures from the weekend.

The deterioration of Hohola Children's Park into a public dump for buai chewers, drunks and drug users shows shows much much we care for our city.

A state-of-emergency should declared to fight the buai pekpek and general littering in our towns and cities. It should be made a criminal offence of the same level as crime and corruption.

Plastics, plastics everywhere

The drains in Port Moresby are clogged with filth and stink to high heaven, such that you wonder if there is a council at all. This drain along Wards Road, Hohola, stank, yesterday arvo and when I took a closer look, saw a dead dog (left), plastic and all manner of filth. Give us a cleaner PNG for our children!

Papua New Guinea, you can have all the money in the world, all I want is a clean town with civilised people! It's time for us like-minded Papua New Guineans to create our own utopia, free of buai-chewing litter-bugs! This is the dump outside Aopi Centre in Waigani yesterday arvo.

 

 

Happy Birthday to Hula Debe Nalu

Happy birthday to my beloved wife and our Mum, Hula Debe Nalu, who would have turned 36 yesterday, August 25, 2012, but left us so alone and tragically on Easter Sunday, March 23, 2008.

Hula Debe Nalu

Memories of the time we have spent together will be cherished forever.

With never-ending love from Malum and our four young children Malum Jr (11), Gedi (10), Moasing (8) and Keith (5).

"Do not stand at my grave and weep,I am not there, I do not sleep.
"I am a thousand winds that blow.
"I am the diamond glint on snow.
"I am the sunlight on ripened grain.
"I am the gentle autumn rain.
"When you wake in the morning hush,I am the swift, uplifting rush

 "Of quiet birds in circling flight.
"I am the soft starlight at night.
"Do not stand at my grave and weep.
"I am not there, I do not sleep.
"Do not stand at my grave and cry.
"I am not there, I did not die!" - MARY FRYE, 1932

Hidden Valley mine pays K37.5 million to Morobe

By MALUM NALU

Morobe Mining Joint Ventures has paid a total K37.5 million in royalties for Hidden Valley mine to the Morobe provincial government, various local level governments, and landowner groups since 2009, however, has no say on how the money is spent.

The shame of Lae…potholes in front of Nadzab Airport last Sunday as the Morobe provincial government can’t explain how it spent K13.5 million in royalty money from Hidden Valley mine.-Picture by MALUM NALU

The Morobe government receives 36% of royalties amounting to K13.5 million to date, while the balance is shared between LLGs and landowner groups.

An MMJV source provided the figures  following outrage over deteriorating infrastructure in Lae, including the pothole-filled Nadzab Airport, which has become an international disgrace to PNG.

The question of how the money was spent became a major point of contention between ousted Morobe Governor Luther Wenge and Bulolo MP Sam Basil.

Wenge and Basil had a gentlemen’s agreement that of the 36% royalties paid to the Morobe government, half was to go back to Bulolo district, but Wenge never honored that, the source said.

Basil and new Morobe Governor Kelly Naru have discussed this and MMJV is expected to receive a letter soon from Mineral Resources Authority (MRA) to start it up.

Provincial administrator Kemas Tomala told The National from Lae  that the Morobe government’s share was absorbed into the provincial budget, while LLGs were free to spend at their own discretion under the Budget Appropriation Act.

Tomala said Nadzab Airport was the responsibility of the national government under the National Airport Corporation.

“We (Morobe government) actually have an agreement with Bulolo district joint district planning and budget priorities committee (JDPBPC),” he said.

“Part of the money goes to Bulolo district while part comes to the Morobe provincial government.

“The money is absorbed into the Morobe provincial government budget.

“As for the LLGs, they have their own Budget Appropriation Act.

“It’s not for me to tell them how to spend their money on roads, bridges, whatever.”

According to the latest financials for the period July 31, 2011 to June 30, 2012, a total K13, 583, 284 has been paid to the Morobe government, breakdown being K2, 514, 575 in 2010; K5, 742, 851 in 2011; and K5, 280, 858 in 2012.

 “Payments started in October 2009 when there was some economic production from the mine and have ramped up along with production,” the source said.

“As per the Mining Act, royalties are 2% FOB revenue, less smelting/refining costs.

“Royalties belong to the state, not the company, and our only role is to write the cheques each month based on production.

“We have no authority to direct recipients on how the funds are spent, although we'd like to have a say in the matter, to ensure they are spent in a transparent manner.”

Apart from Morobe provincial government, those who have benefitted from Hidden Valley mine since 2009 include Mumeng LLG (3%, K1,128,190);  Waria LLG          (2%,  K752,127);   Buang LLG (1% , K376,063);  Wau/Rural LLG (5%, K1,880,317; Watut LLG   (5%, K1,880,317;  Wau/Bulolo Urban LLG (4%, K1,504,254); Highway Communities (0.50%,K188,032);  River Communities (0.5%, K188,032 ); Subsidiary Landowner Communities (1.5%, K564,095);  Settler Communities (2%,  K 752,127);  Wafi Landowner Association (0.5%, K188,032); Nakuwi Landowner Association (2%, K752,127);  Future Generations Trust (2%, K752,127); HV Landowners - Winima recipients (8.75%, K 3,290,555:;  HV Landowners - Kwembu recipients (8.75%,  K3,290,555); and  HV Landowners - Nauti recipients (17.50%, K 6,581,110).

Lae set to become tuna capital of Pacific

By MALUM NALU

Lae is set to become the tuna hub of the Pacific with four large multi-million tuna plants to be established at Malahang over the next couple of months.

While progress of the much-mooted Pacific Marine Industrial Zone outside Madang has somewhat slowed down because of landowner and non-government organisation issues, it is all systems go in Lae, with supportive landowners and provincial government.

Four large tuna plants – Majestic Seafoods, Dong Wong, Nambawan Seafoods and Hali Sheng – are set to make Lae their base.

Majestic Seafood’s’ K80 million new tuna canning  is facility expected to be opened over the next two months and will create at least 2,000 jobs for local people.

A new building at the new Majestic Seafoods’ facility at Malahang.-Picture by MALUM NALU

When in full production, it will create at least 5,000 jobs altogether for local people.

In the first phase of the project, in which 200 metric tonnes of tuna a day will be produced, up to 3,000 people will be employed, and in the second phase, in which 380 metric tonnes of tuna a day will be produced, up to 6,000 people will be employed.

Majestic Seafoods is a company put up by three major companies composed of Frabelle Fishing Corporation of Philippinnes, operating in PNG as Frabelle (PNG) Ltd; Philippine-based Century Canning Corporation; and Thailand-based Thai Union Corporation, a subsidiary of Thai Union Frozen Products PCL (TUF).

Thai Union is the second-largest tuna canner in the world, while Century Canning is the biggest canner in the Philippines.

Dong Wong is a Korean company; Nambawan Seafoods is made up of Trans Pacific Journey Corporation and TSP Marine of the Philippines; and Hali Sheng is from Mainland China.

All three will be involved in tuna loining.

These add to the two already established canneries in Lae, Malaysian-owned International Food Corporation which produces the popular Besta canned mackerel, and Frabelle of the Philippines.

Morobe provincial administrator Kemas Tomala told The National in Lae that these developments, coupled with the US$700 million Lae port development, would make Lae the tuna capital of the Pacific and one of the largest tuna centres in the world.

“You can say that Lae is becoming the hub of fishing in PNG and in the Pacific,” he said.

“Yes, the fishing industry is interested in Lae and Morobe provincial government, provincial administration, and land owners are doing everything possible to ensure that the industry prospers in Lae and provides employment

“We are grateful that the national government is working with the Asian Development Bank to develop the new port in Lae.

“That will help us in our bid to make Lae the fishing hub of the Pacific.

“We are already moving in that direction.

“The biggest thing in PNG’s favor (tuna) is the access to the European Union market.

“All the investors are coming to PNG because of the access given to PNG by the European Union.”

Kemala said the tuna plants would also benefit other spin-off industries.

“We will be expecting other new investors,” he said.

“Apart from the canning of tuna, there will be a lot more downstream processing.

“This includes manufacturing of cans, packaging and other support that will come along with the tuna canneries.

“In a lot of ways, we are grateful that commercial investors have shown confidence in the commercial environment in Lae.”

New Morobe Governor Kelly Naru welcomed the latest inclusion to Lae’s commercial scene -   Majestic Seafoods’ K80 million new tuna cannery outside Lae, - which will employ at least 5,000 people when in full operation.

“My own view is that I approach the growth and development of the city and province with an open-door policy,” Naru told The National.

“I’m a team player and I want to allow economic growth, and investment, as part and parcel of this city and province.

“I’m happy with the fisheries projects and others coming into the province because they will create economic growth, employment, and cut down law and order problems.

“I believe in investments and I believe there’s a lot of potential to attract all different kinds of investment.”

Papua New Guinea currently boasts the largest fisheries zone in the Pacific at an area of 2.4 million sq km.

 The country landed 749,000 tonnes of tuna in 2010, some 17% of the world’s catch.

Under the EU deal, PNG’s canned tuna has been granted permission to enter the EU market duty free, and imports to the continent − which reached 15,600 tonnes in 2010 − are expected to double in this year.

 Papua New Guinea has also been permitted to export fish to the EU from outside its own territorial waters, allowing investors to source fish elsewhere and process it in PNG.

Governor, administrator keen on investments in Morobe

By MALUM NALU

Morobe Governor Kelly Naru and provincial administrator Kemas Tomala are both keen on bringing in more investments into Lae, the industrial centre of Papua New Guinea, and the province as a whole

Naru and Tomala said the investment climate had never been better, especially with development of the Lae port and other resource developments such as the giant Wafi-Golpu mining prospect, and Morobe was assured of a good future.

They especially welcomed the latest inclusion to Lae’s commercial scene.  Majestic Seafoods’ K80 million new tuna cannery outside Lae, which will employ at least 5,000 people when in full operation.

The main building of Majestic Seafoods’ K80 million new tuna cannery at Malahang outside Lae.-Nationalpic by MALUM NALU

“My own view is that I approach the growth and development of the city and province with an open-door policy,” Naru told The National.

“I’m a team player and I want to allow economic growth, and investment, as part and parcel of this city and province.

“I’m happy with the fisheries projects and others coming into the province because they will create economic growth, employment, and cut down law and order problems.

“I believe in investments and I believe there’s a lot of potential to attract all different kinds of investment.

“My administration is happy to work with and talk with investors who want to do business in Lae.”

Tomala predicted a bright future for Lae and Morobe province over the next 100 years, especially with the development of the Lae port and Wafi-Golpu.

“The economy of Morobe in general is looking good,” he told The National.

“In terms of the next 100 years or so, it will be a very bright future, based on current trends in business investments in Lae.

“We’re looking at the fishing industry, general downstream processing in Lae, and manufacturing industries coming in.

“We also have the new port coming in, which will propel a lot of investments coming in.

“We’re also looking at the mining sector, especially the Wafi-Golpu projects which comes on stream in 2014-2015.

“This will be major economic investments that will trigger off a lot of commercial investments in Lae.

“At the moment, we’re advised that it (Wafi-Golpu) will be around for 40-60 years, so this is going to be a major investment in its own right.

“This will trigger off a lot of commercial investments in Lae.”

Kemala said economic activities were also planned for the Markham Valley including agri-business, power generation and others.

He said companies from neighbouring provinces such as Madang were using Lae to conduct business as well as use the Lae port, which augured well for the city and province.

Kelly Naru: Morobe people have spoken

By MALUM NALU

New Morobe Governor Kelly Naru says the people of the province have spoken by voting out his predecessor Luther Wenge after 15 years in office.

“You have to get the people of Morobe to answer that,” he said at his first press conference at Melanesian Hotel in Lae last Friday since being elected as Morobe Governor.

Morobe Governor Kelly Naru making a point at his press conference last Friday.-Picture by MALUM NALU

“What has happened is that people have not seen change for the better, and in their right mind, they have decided that my former brother (Wenge) would have to accept early retirement.

“And that’s what they’ve done.”

Naru said law and order was a major stumbling block to development in Lae and Morobe province, and made reference to Wenge’s court cause against Australia’s Enhanced Cooperation Programme (ECP) in 2005, which saw Australian policemen and women ordered out of PNG.

“Believe me, I will not go to court and chase ECP out,” he said.

“We have to begin addressing law and order problems in the city.

“I believe that policies and law-enforcement agencies are here to help us.

“There are people who are here to help us, how how can we chase them out again?

“This is something that I don’t like.”

Naru said successive governments over the years had failed to address the law and order problem in Lae.

“Law and order is a major concern in Lae City,” he said.

“Successive governments have tried to address this, but they didn’t address it well.

“To me, the problem of law and order in Lae is still there.

“We have to find some ways and means of addressing this.

“Law and order is part and parcel of a package.

“We have to address law and order not on a piecemeal basis, but with other issues such as unemployment, youth, women, religion.

“I will sit down with our leaders and we will try to address this problem of law and order.

“I will invite all stakeholders together so we can address the problem.

“If we can create economic growth and business activities in which youths can be engaged, then obviously we will minimise problems of law and order.

“Hopefully, we can address the issue, not in total eradication, but in minimising law and order problems we have in the city.”

New K80 million tuna cannery to be opened in Lae

By MALUM NALU

Majetic Seafoods’ K80 million new tuna canning facility at Malahang outside Lae is expected to be opened over the next two months and will create 2,000-3,000 jobs for local people.

When in full production, it will create 5,000-6,000 jobs altogether for local people.

People lining outside Majestic Seafoods’ cannery at Malahang outside Lae last Friday hoping to secure a job.-Nationalpic by MALUM NALU

In the first phase of the project, in which 200 metric tonnes of tuna a day will be produced, up to 3,000 people will be employ, and in the second phase, in which 380 metric tonnes of tuna a day will be produced, up to 6,000 people will be employed.

Majestic Seafoods is a company put up by three major companies composed of Frabelle Fishing Corporation of Philippinnes, operating in PNG as Frabelle (PNG) Ltd; Philippine-based Century Canning Corporation; and Thailand-based Thai Union Corporation, a subsidiary of Thai Union Frozen Products PCL (TUF).

Thai Union is the second-largest tuna canner in the world, while Century Canning is the biggest canner in the Philippines

Operations and project manager Cristito Andrade said work on the project started in September 2010 with the first phase nearing completion.

“This will be the biggest canning project in the country,” he said.

“We will be producing canned tuna and processed loins.

“The project cost around K80 million.

“The major components are the building itself for the plant.

“For the first phase of our project, we will employ 2,000-3,000 local people.

“In the second phase of the project, we will employ 5,000-6,000 local people.

“We will increase production from 200 metric tonnes a day to 380 metric tonnes a day.

“We are targeting to open the plant in the last quarter of this year, around October or November.”

Andrade said recruitment had started early so that women could be trained on how to process tuna.

“Our human resources department has started hiring local women because we want to train them before actual production starts,” he said

“Eighty per cent of the catch will come from PNG waters while 20% will come from other suppliers.

“It will be unloaded at our main port of Lae.

“From the boat, it will be transported in insulated trucks to Malahang.

“We will sell 80% of our produce overseas and 20% on the local market.

“Most will go to the European Union, while the rest will go the the USA, Middle East and Japan.”

Andrade said the benefits would be enormous for the local economy.

“It will greatly benefit the local economy,” he said.

“Firstly, the labour, in which many local people will be hired.

“Then there are the spin-off businesses which will emerge as a result of this project.”