MMJV admits "high" sediment in Watut River

By MALUM NALU

One of the joint venture partners in the just-commissioned Hidden Valley gold mine in Morobe province has admitted that there are “higher-than-expected” sediment levels in the Watut River.

South African company Harmony Gold Mining, through its chief executive officer Graham Briggs, made the announcement in a letter to stakeholders – published on its website (http://www.harmony.co.za/sd/message.asp) – on Tuesday this week.

Harmony CEO Graham Briggs

Briggs admitted that this was causing “serious concern within and outside the company” and a change in the course of a section of the lower Watut River, resulting in die-back of vegetation.

The admission came about as Morobe Mining Joint Ventures, made up of Harmony and Australian partner Newcrest, started paying compensation to affected villagers along the Watut River and as Bulolo MP Sam Basil called on villagers not to accept the payouts.

“The higher-than-expected sediment impacts in the Watut River in PNG have given rise to serious concern within and outside the company,” Briggs said.

“The mine’s environmental impact statement (EIS) predicted sediment loads in the Watut River during construction but, as it has taken longer than expected to reach hard rock at the mine which will be used to construct the interim waste dumps, the construction of stable waste dumps has been delayed resulting in a continued high sediment load in the Watut River.

“Construction of the interim waste dumps has been prioritised, with specific resources allocated to the project to ensure speedy progress.

“This will reduce the sediment load in the river, and allow the current sedimentation to flush out.

“In addition, mining activities which contributed to the increased sediment load have been stopped.

“The MMJV commissioned further impact assessments so that we could better understand the impact of these sediment loads on the river.

“These studies show that the increased sediment load in the Watut River (of which the mine is one source) has resulted in a change in the course of a section of the lower Watut River, and a die-back of vegetation in that area as a result of flooding.

“Although these changes in the river course occur naturally over time, the mine's contribution to the sediment load in the lower Watut River has speeded up this process.

“The MMJV has committed to expanding its monitoring programme to quantify the impacts coming from the mine and other sources, taking remedial action wherever possible, and working with the government to assess fair compensation for those affected.”

Hidden Valley mine was officially commissioned on Sept 29 by Governor General Sir Paulias Matane at a ceremony which also marked its opening.

The new gold project is a joint venture between South African miner Harmony Gold (70%) and Newcrest Mining Ltd (30%), the largest gold miner in Asia-Pacific.

MMJV plans to invest a total of K1.25 billion over a 10-year period, with the outlay to go towards wages and salaries (K800 million), royalty payments (K200m) and revenue for the provincial and national government (K250m).

The Hidden Valley mine is projected to produce an estimated 2.9 million ounces of gold.

Basil challenges MMJV over Watut River payouts

By MALUM NALU

Bulolo MP Sam Basil has gone on the warpath with Morobe Mining Joint Ventures after the company started paying out compensation to villagers along the Watut River who have been affected by activities of the Hidden Valley gold mine.

 Basil went on NBC national radio today to tell Watut River communities to refrain from signing any statutory declarations and documents issued by MMJV and Morobe provincial government until legal advice was sought.

The controversial statutory declaration (please click on images to enlarge and read contents)

 This is after MMJV started paying out compensation on Oct 18 to affected villagers along the Watut River system.

 “I believe signing the statutory declaration and receiving compensation may jeopardise future lawsuits by the locals and district administration,” he said.

 “My office has not been informed by MMJV officials about past methods of compensation, as well as the current compensation payouts, and the future implications of the already-signed statutory declarations.

 “I caution the Morobe provincial mining division officials not to blindly commit people of Bulolo district and Huon Gulf district - who are already affected by the river system - to sign any form of statutory declaration without knowing fully its future effects.

 “Any statutory declaration must have clearance from both parties’ legal representatives before executing the processes.”

Improvement damage valuation sheet

 Basil said his joint district planning and budget priorities committee (JDPBPC) recently approved K150, 000 to fund a toxicologist from Australia, who had already identified areas for sampling.

 “I also urge affected people of Huon Gulf to convince their local MP and Minister for Health Sasa Zibe, or Governor Luther Wenge, to fund the Huon Gulf side of the affected river system as it is a very expensive exercise which needs a joint effort from all concerned parties.

 “The documents (given out by MMJV and Morobe provincial mining) are now in the hands of lawyers representing Bulolo district, who will advise the Bulolo JDPBPC of its future implications.

 “If there are any implications, then the law firm has been instructed to file an order to stop MMJV and the Morobe provincial government from carrying out the compensation payouts, while also seeking nullification of the already-signed documents.”

 Basil said Bulolo JDPBPC would sue MMJV if there was enough evidence about Watut River pollution by the Hidden Valley mine.

 “I don’t want to see people blindly signing statutory declarations today without knowing its future implications,” he said.

 “Proper and just compensation must be carried out beforehand, with reference to the Ok Tedi experience.”

 MMJV general manager of sustainability and external relations David Wissink, in a letter dated Oct 8, 2010, said the company was committed to pay for individual improvement damages along Watut River.

MMJV's compensation letter

 He said these would be calculated in accordance with the PNG Valuer General 2008 revised rate and MMJV’s compensation policies and procedures.

Bulolo MP takes government to task for environmental damage

Bulolo MP, Sam Basil, has published photographs of the environmental damage caused by the Hidden Valley  gold mine and berated government agencies for not protecting the interests of local landowners and instead fighting the corner of the mining companies.
“I  want to make such information available to the public especially the resource districts to show them what they may expect when such developments comes their way in the future”, he says.
“Development as we all know will come at a cost but to me development must not cost my people’s environment as their lives depend on it”.

Basil says that as an MP he finds it very surprising that he is fighting the very institutions set up by the government of the people to monitor and safeguard the landowners interests – Mineral Resources Authority, Department of Environment and Conservation, Department of Mining and the provincial mining division.
“None of these Authorities or agencies are willing to help attend to the landowners' concerns of environmental destruction to the Watut River system” says Basil.
“MRA are totally ignorant.
"This organisation recently chose to buy two new Toyota Land Cruisers for Bulolo Ddstrict’s law and order offices costing more then K200,000 while ignoring the cries of environmental damages and MOA breaches by the both Watut River communities and the Nakuwi Landowners' Association”.

“The Morobe provincial mining division  officers were often seen wearing MMJV uniforms (orange jackets) and in the company of MMJV officers.
“Benson Suwang (provincial chairman of mines), a community representative whom I as MP for Bulolo appointed him into the Morobe provincial assembly,  gave a contradicting statement supporting the MMJV activities while ignoring the environment damages by saying development comes at a cost.
“The Department of Environment has never monitored the river system since MMJV started excavation and side casting from the mine site,  leaving the provincial government's mines officers walking around with MMJV-sponsored environmental reports - blindly believing without challenges.
“There is already evidence of the Watut River system damages and I will not turn back now but will fight this issue all the way.
“I welcome support and experiences from other Landowners or brothers and sisters from PNG.
“We must all now be responsible in making all mining practices now and in the future safe for the surrounding communities.If the government and its agencies are lazy or compromises themselves then the developer will take shortcuts at the cost of the unfortunate rural people”.