HARMONY Gold mining company, Africa’s third largest producer of the precious metal, has revealed that the company’s Wafi-Golpu joint venture with Newcrest Mining Ltd in Papua New Guinea may be three times the size of its next biggest mine, The National reports.
According to a presentation posted on the Harmony website, Wafi may yield as much as an annual 700,000 ounces of gold and 320,000 tonnes of copper.
The company was still working on sizing up the resource.
Harmony, which produced 1.43 million ounces of gold last fiscal year, was digging mines abroad as depleted South African reserves became more difficult and dangerous to excavate, coupled with rising cost of labour and electricity.
In the financial year ended June 30 last year, Harmony’s Tshepong mine yielded about 217,000oz of gold.
The company climbed 3.66 rand, or 2.7% to 99.61 rand - the highest level since April 2009 close of the Johannesburg trading, giving Harmony a market value of US$6 billion.
Wafi may add US$1.5 billion to US$2 billion, or about 40%, to the value and make the company a takeover target, RBC Capital Markets said last week.
Wafi’s content was estimated at 16moz of gold, 4.85mt of copper and 55,000t of molybdenum, or a total gold equivalent of 38.5moz, according to the presentation.
It added that only Freeport-McMoran Copper & Gold Incorporated’s Grasberg mine in Indonesia and Ivanhoe Mines Ltd’s Oyu Tolgoi deposit in Mongolia have higher gold equivalent grades.
Harmony’s management last year estimated the cost of building a mine at Wafi at US$2.5 billion to US$3 billion.
Friday, April 01, 2011
Bench warrant sought for arrest of doctors
By JACOB POK
AN application for a bench warrant to arrest the doctors on strike is expected to be made at the Waigani National Court this morning, The National reports.
The National Doctors Association and its members have been cited for continuously failing to comply with last Friday’s court orders restraining them from going on strike.
The court will, today, also hear submissions on contempt proceedings against the doctors for defying the court order.
Justice Catherine Davani yesterday upheld last Friday’s restraining orders pending the hearing of the substantive matter.
She issued the orders while dismissing the doctors’ motion to set aside the restraining order.
Davani also noted that the doctors’ claims where not related to the previous agreements but were new, ambiguous and unregistered.
She said the NDA, being professional men and women, had circumvented the law and established processes to achieve their goals.
“That is a dangerous trend and one that can lead this nation to anarchy as other unions and citizens of this country are observing with interest.
“This court will not condone the NDA’s claims and condemn it in the strongest possible terms,” Davani said.
“The processes in relation to the resolving of industrial claims are available to the citizens of this country and must be utilised.
“There are no short cuts.
“Parties should not resort to strike action at their whim. Rules and processes must be followed.
“In this case, we have professionals, being doctors, who are uncompromising and will not allow due processto take its course. That, again, should not be allowed to happen,” Davani said yesterday.
She earlier warned NDA executives to refrain from “flaunting” their issues in the media, while they continued to go on strike and described their actions as “fervently breached of the court order”.
AN application for a bench warrant to arrest the doctors on strike is expected to be made at the Waigani National Court this morning, The National reports.
The National Doctors Association and its members have been cited for continuously failing to comply with last Friday’s court orders restraining them from going on strike.
The court will, today, also hear submissions on contempt proceedings against the doctors for defying the court order.
Justice Catherine Davani yesterday upheld last Friday’s restraining orders pending the hearing of the substantive matter.
She issued the orders while dismissing the doctors’ motion to set aside the restraining order.
Davani also noted that the doctors’ claims where not related to the previous agreements but were new, ambiguous and unregistered.
She said the NDA, being professional men and women, had circumvented the law and established processes to achieve their goals.
“That is a dangerous trend and one that can lead this nation to anarchy as other unions and citizens of this country are observing with interest.
“This court will not condone the NDA’s claims and condemn it in the strongest possible terms,” Davani said.
“The processes in relation to the resolving of industrial claims are available to the citizens of this country and must be utilised.
“There are no short cuts.
“Parties should not resort to strike action at their whim. Rules and processes must be followed.
“In this case, we have professionals, being doctors, who are uncompromising and will not allow due processto take its course. That, again, should not be allowed to happen,” Davani said yesterday.
She earlier warned NDA executives to refrain from “flaunting” their issues in the media, while they continued to go on strike and described their actions as “fervently breached of the court order”.
Clouds, crew factors in air crash
BAD weather and inadequate pilot experience contributed to the 2009 Kokoda plane crash which killed all 13 people on board, including nine Australians, transport investigators said in their final report released yesterday, The National reports. The Airlines PNG flight, captained by Jannie Moala, slammed into the side of a hill as it made its way to Kokoda from Port Moresby on Aug 11, 2009.
According to Civil Aviation’s aviation investigation commission, the plane crashed while in controlled flight, meaning there had been nothing wrong with the plane itself.
Although the day had been very cloudy, the crew had attempted a descent using visuals only and it did enter a stage where instruments needed to be used.
The co-pilot had not been qualified to fly using instruments.
Senior AIC investigator Sid O’Toole said that the aircraft was well-equipped in terms of its multifunctional unit including navigational, weather, terrain avoidance and warning systems.
“When the crew commenced the descent through the Kokoda Gap in the reported rapidly changing weather conditions, they committed themselves to a course of action that they could not be assured of completing safely,” the report said.
The difficult conditions of the flight would have tested the crew, it added.
“It was probable that during the descent, the crew were required to manoeuvre the aircraft to remain clear of cloud, or regain that status, and in so doing, impacted terrain,” the report concluded.
The crash happened around 11.14am, about 20 minutes after it took off from Jackson International Airport.
The AIC attributed some responsibility to Airlines PNG, saying it had no emergency procedures in place should pilots needed to rely primarily on flight instruments.
But it also did not rule out the possibility that the co-pilot had become incapacitated before the crash, although it noted he had appeared to be in good health.
In response to the accident, the civil aviation safety authority is in the process of legislating for cockpit voice recorders to be installed in all aircraft that carry nine or more people.
CASA PNG has also set up a new chief medical officer position and shifted responsibility for incident reporting to the accident investigation commission.
Despite PNG being a signatory to the Chicago Convention on International Civil Aviation, it previously had neither a compulsory or voluntary reporting system.
Airlines PNG has also since employed new visual flight procedures.
According to Civil Aviation’s aviation investigation commission, the plane crashed while in controlled flight, meaning there had been nothing wrong with the plane itself.
Although the day had been very cloudy, the crew had attempted a descent using visuals only and it did enter a stage where instruments needed to be used.
The co-pilot had not been qualified to fly using instruments.
Senior AIC investigator Sid O’Toole said that the aircraft was well-equipped in terms of its multifunctional unit including navigational, weather, terrain avoidance and warning systems.
“When the crew commenced the descent through the Kokoda Gap in the reported rapidly changing weather conditions, they committed themselves to a course of action that they could not be assured of completing safely,” the report said.
The difficult conditions of the flight would have tested the crew, it added.
“It was probable that during the descent, the crew were required to manoeuvre the aircraft to remain clear of cloud, or regain that status, and in so doing, impacted terrain,” the report concluded.
The crash happened around 11.14am, about 20 minutes after it took off from Jackson International Airport.
The AIC attributed some responsibility to Airlines PNG, saying it had no emergency procedures in place should pilots needed to rely primarily on flight instruments.
But it also did not rule out the possibility that the co-pilot had become incapacitated before the crash, although it noted he had appeared to be in good health.
In response to the accident, the civil aviation safety authority is in the process of legislating for cockpit voice recorders to be installed in all aircraft that carry nine or more people.
CASA PNG has also set up a new chief medical officer position and shifted responsibility for incident reporting to the accident investigation commission.
Despite PNG being a signatory to the Chicago Convention on International Civil Aviation, it previously had neither a compulsory or voluntary reporting system.
Airlines PNG has also since employed new visual flight procedures.
K100m windfall for public servants
Public servants to get hefty pay rise
THE government is putting an additional K100 million in the pay packets of all public servants, The National reports.
Cabinet approved the pay increase yesterday.
The increase “is better than they have been asking for” and would cover striking doctors as well, acting Prime Minister Sam Abal said last night.
Details of the deal will be presented by Public Services Minister Moses Maladina as soon as the details have been finalised.
Abal said: “The Somare government is conscious of the rise in cost of living in recent days. We have to keep up with the speed of things happening.
“We have decided to increase the pay packets of public servants across the board. I want public servants to respond positively to this by improving on their productivity, efficiency and effectiveness.”
Abal said: “Public servants should be happy but at the same time we are putting a challenge before them.
“This is the carrot but the stick will come later.”
While the exact terms are still being negotiated, Abal said the wages bill of the state would increase by more than K100 million.
The bill for salaries and emoluments for this year was projected in the National Budget at K2.494 billion, an increase of K541.3 million compared with last year.
The largest increase in personnel emoluments for national departments this year was attributed to hospital management services (K16.8 million), Correctional Services (K17.4 million) as well as full superannuation funding of K220 million.
The K100 million announced yesterday was additional to the projected increase.
Abal said the government was overhauling and streamlining the entire public service general orders, including the pay structure.
Where legislative changes are required, the necessary bills will be drafted and go before the next sitting of parliament in May, Abal said.
Public servants are still owed a 6% across-the-board salary increase by their employer but Abal indicated the deal approved by the government was superior.
At the same time, he called on striking doctors to return to work and let the industrial machinery to sort out their grievances.
He said the government was responding positively and doctors should respect this.
He said: “Something has gone wrong but we are reasonable. We will increase their pay rates.
“In return, they must come honest and serve the people.
“We should not be irresponsible and try to coerce or force by intimidation and threats.
“That is for people with less intelligence, not professionals like doctors.”
THE government is putting an additional K100 million in the pay packets of all public servants, The National reports.
Cabinet approved the pay increase yesterday.
The increase “is better than they have been asking for” and would cover striking doctors as well, acting Prime Minister Sam Abal said last night.
Details of the deal will be presented by Public Services Minister Moses Maladina as soon as the details have been finalised.
Abal said: “The Somare government is conscious of the rise in cost of living in recent days. We have to keep up with the speed of things happening.
“We have decided to increase the pay packets of public servants across the board. I want public servants to respond positively to this by improving on their productivity, efficiency and effectiveness.”
Abal said: “Public servants should be happy but at the same time we are putting a challenge before them.
“This is the carrot but the stick will come later.”
While the exact terms are still being negotiated, Abal said the wages bill of the state would increase by more than K100 million.
The bill for salaries and emoluments for this year was projected in the National Budget at K2.494 billion, an increase of K541.3 million compared with last year.
The largest increase in personnel emoluments for national departments this year was attributed to hospital management services (K16.8 million), Correctional Services (K17.4 million) as well as full superannuation funding of K220 million.
The K100 million announced yesterday was additional to the projected increase.
Abal said the government was overhauling and streamlining the entire public service general orders, including the pay structure.
Where legislative changes are required, the necessary bills will be drafted and go before the next sitting of parliament in May, Abal said.
Public servants are still owed a 6% across-the-board salary increase by their employer but Abal indicated the deal approved by the government was superior.
At the same time, he called on striking doctors to return to work and let the industrial machinery to sort out their grievances.
He said the government was responding positively and doctors should respect this.
He said: “Something has gone wrong but we are reasonable. We will increase their pay rates.
“In return, they must come honest and serve the people.
“We should not be irresponsible and try to coerce or force by intimidation and threats.
“That is for people with less intelligence, not professionals like doctors.”
Thursday, March 31, 2011
Beneath the shadow of Mt Giluwe
By MALUM NALU
National Agriculture Research Institute’s high altitude research station is situated in picturesque Tambul, Western Highlands, on the foothills of the majestic Mt Giluwe.
Mt Giluwe is the second highest mountain in Papua New Guinea at 4,368 metres (14,331 feet), after Chimbu’s Mt Wilhelm (4, 509m or 14, 793ft), and is in neighbouring Southern Highlands.
Tambul, situated to the west of Mt Hagen and bordering Enga and Southern Highlands provinces, is famous for its fresh vegetables.
In fact, it is the single biggest producer of fresh vegetables in the country such as potatoes, broccoli, cabbages and cauliflower.
Its people are some of the hardest working who still value their subsistent way of living.
Unlike other parts of the highlands, where tribal fighting, rapes and murders are commonplace, Tambul is one place that begs to differ.
The people are putting down their guns and knives, and picking up their spades and shovels, to work the rich volcanic soils of Giluwe that God has provided.
They are keen to supply the gas project in just a stone’s throw away in neighbouring Southern Highlands.
Tambul station is about 2,224m (7, 296ft) above sea level at the foot of Mt Giluwe, and was established as a government patrol post in the 1950s, with the first highlands highway passing through it in the 1960s to Mendi in Southern Highlands.
Believe it or not, ice and snow are regular occurrences here, and the place is freezing cold, too cold, in fact, to grow coffee
Tambul is already contributing in a big way towards development of agriculture in this country, with the research station.
Around the station, there are cattle, sheep and goats grazing, amidst kaukau, potato, wheat and rice fields in scenes of pastoral poetry.
It’s a joy for visitors like me to wander through the scenic fields, garnished by sentinel-like trees, to the magnificent backdrop of Mt Giluwe.
Tambul, in the Kaguel Valley, is also one of the more lush, fertile and verdant areas of the Highlands.
Vegetables and fruit grown in abundance, supplemented by readily-available chicken, pork, sheep, goat, cattle and fish from aquaculture projects.
Hence, in this land of milk and honey – on the border of Western Highlands, Southern Highlands and Enga provinces - you have a very healthy-looking population.
During my visit, I spent an enjoyable Friday afternoon with NARI staff including programme manager Johannes Pakatul, as well as my former Aiyura National High School mate, scientist Kud Sitango, who showed me around beneath the towering presence of Mt Giluwe.
“We have a dedicated team of scientists and staff from all over PNG working here,” Pakatul tells me.
“What we are doing here will benefit the whole country.”
I couldn’t agree more.
National Agriculture Research Institute’s high altitude research station is situated in picturesque Tambul, Western Highlands, on the foothills of the majestic Mt Giluwe.
 |
| Mt Giluwe towers over the station |
Tambul, situated to the west of Mt Hagen and bordering Enga and Southern Highlands provinces, is famous for its fresh vegetables.
 |
Field supervisor Joana Galua in a kaukau (sweet potato) plot
|
In fact, it is the single biggest producer of fresh vegetables in the country such as potatoes, broccoli, cabbages and cauliflower.
Its people are some of the hardest working who still value their subsistent way of living.
Unlike other parts of the highlands, where tribal fighting, rapes and murders are commonplace, Tambul is one place that begs to differ.
The people are putting down their guns and knives, and picking up their spades and shovels, to work the rich volcanic soils of Giluwe that God has provided.
They are keen to supply the gas project in just a stone’s throw away in neighbouring Southern Highlands.
Tambul station is about 2,224m (7, 296ft) above sea level at the foot of Mt Giluwe, and was established as a government patrol post in the 1950s, with the first highlands highway passing through it in the 1960s to Mendi in Southern Highlands.
Believe it or not, ice and snow are regular occurrences here, and the place is freezing cold, too cold, in fact, to grow coffee
Tambul is already contributing in a big way towards development of agriculture in this country, with the research station.
 |
Wheat grows in proliferation
|
It’s a joy for visitors like me to wander through the scenic fields, garnished by sentinel-like trees, to the magnificent backdrop of Mt Giluwe.
 |
Taro besides potato screen houses
|
Vegetables and fruit grown in abundance, supplemented by readily-available chicken, pork, sheep, goat, cattle and fish from aquaculture projects.
 |
Potato screen houses
|
During my visit, I spent an enjoyable Friday afternoon with NARI staff including programme manager Johannes Pakatul, as well as my former Aiyura National High School mate, scientist Kud Sitango, who showed me around beneath the towering presence of Mt Giluwe.
 |
Station manager Johannes Pakatul at the station signboard
|
“What we are doing here will benefit the whole country.”
I couldn’t agree more.
Freight subsidy the way to go: Dutton
By MALUM NALU
Former MP Warren Dutton believes the success of Ok Tedi Mining Ltd’s freight subsidy scheme for rubber growers in Western province can be duplicated throughout PNG for every crop produced by rural villagers.
He said this today at a workshop focusing on the impact of LNG on the PNG economy, with particular reference to agriculture.
Dutton, who is chairman of the Consultative Implementation and Monitoring Council (CIMC) agriculture sectoral committee, said successive governments over the years were of the view that PNG should not have a freight subsidy policy.
“I would confidently suggest that if our members of parliament were to set aside half of their annual K10 million into a freight subsidy fund, that that K500 million or so would be sufficient to provide a marked improvement in the prices that would be paid for cash crops right throughout all their electorates,” he said.
“I would suggest that it would be an even greater vote winner than the free education policy was some years ago.
“More importantly than that, it would change the mood of the nation.
“It would change that mood, because our rural people would be able to believe that they were at last being recognised as productive citizens of their country, whose labour and sweat deserved an appropriate financial reward.
“Rather than beggars, who are only worthy of recognition at election time!”
Regarding the LNG project, Dutton said successive governments over the years had lacked experience and wisdom to manage and share the wealth from various resource projects to rural people.
He said inflation brought about by the LNG project would squeeze most village cash crop producers out of business.
“If we allow this to happen, we will be responsible for their inevitable reaction,” Dutton said.
“The LNG project will inevitably cause this to happen.
“It may, hopefully, sometime after 2016 supply the revenue needed to continue the alleviation of the problem.”
Former MP Warren Dutton believes the success of Ok Tedi Mining Ltd’s freight subsidy scheme for rubber growers in Western province can be duplicated throughout PNG for every crop produced by rural villagers.
He said this today at a workshop focusing on the impact of LNG on the PNG economy, with particular reference to agriculture.
Dutton, who is chairman of the Consultative Implementation and Monitoring Council (CIMC) agriculture sectoral committee, said successive governments over the years were of the view that PNG should not have a freight subsidy policy.
“I would confidently suggest that if our members of parliament were to set aside half of their annual K10 million into a freight subsidy fund, that that K500 million or so would be sufficient to provide a marked improvement in the prices that would be paid for cash crops right throughout all their electorates,” he said.
“I would suggest that it would be an even greater vote winner than the free education policy was some years ago.
“More importantly than that, it would change the mood of the nation.
“It would change that mood, because our rural people would be able to believe that they were at last being recognised as productive citizens of their country, whose labour and sweat deserved an appropriate financial reward.
“Rather than beggars, who are only worthy of recognition at election time!”
Regarding the LNG project, Dutton said successive governments over the years had lacked experience and wisdom to manage and share the wealth from various resource projects to rural people.
He said inflation brought about by the LNG project would squeeze most village cash crop producers out of business.
“If we allow this to happen, we will be responsible for their inevitable reaction,” Dutton said.
“The LNG project will inevitably cause this to happen.
“It may, hopefully, sometime after 2016 supply the revenue needed to continue the alleviation of the problem.”
Sovereign wealth fund to offset ‘Dutch Disease’
By MALUM NALU
The creation of a sovereign wealth fund (SWF) can offset the negative impacts of ‘Dutch Disease’, according to deputy treasury secretary Anthony Yauieb.
He said this today at a workshop focusing on the impact of LNG on the PNG economy, with particular reference to agriculture.
“Can ‘Dutch Disease’ be avoided?” Yauieb said in his presentation.
“Cause of ‘Dutch Disease’ is an inflow of foreign currency into PNG
“It can be reduced by not bringing all of the foreign currency into PNG
“Policy option to minimise the effects of ‘Dutch’ Disease is through creation of an offshore SWF.”
Yauieb said the size of LNG revenues have substantial macroeconomic implications that need to be carefully managed, including:
• Exchange rate appreciation / Dutch Disease;
• Cost and operation of monetary policy;
• Risk of overheating the domestic economy; and
• Adverse effects in non-mineral sectors of the economy.
He said offshore arrangements for the SWF included: state retaining full ownership and control; promoting macroeconomic stability; underpinning long- term development and socio-economic objectives; helping protect non-mineral sector industries; and were robust, transparent and effective.
Yauieb said the plan was to establish a consolidated pool of offshore funds with three coordinated and integrated funds for infrastructure; stabilisation; and future (savings) fund
He said other plans for the PNG SWF were:
• Fully integrating SWF with the budget and fiscal framework;
• Governance, transparency, disclosure, accountability and asset management rules would be based on international best practice;
• Drawdown rules would be developed to ensure prudent macroeconomic management while supporting development objectives;
• SWF would be overseen by an independent board; and
• Investment would be undertaken by offshore investment manager.
The creation of a sovereign wealth fund (SWF) can offset the negative impacts of ‘Dutch Disease’, according to deputy treasury secretary Anthony Yauieb.
He said this today at a workshop focusing on the impact of LNG on the PNG economy, with particular reference to agriculture.
“Can ‘Dutch Disease’ be avoided?” Yauieb said in his presentation.
“Cause of ‘Dutch Disease’ is an inflow of foreign currency into PNG
“It can be reduced by not bringing all of the foreign currency into PNG
“Policy option to minimise the effects of ‘Dutch’ Disease is through creation of an offshore SWF.”
Yauieb said the size of LNG revenues have substantial macroeconomic implications that need to be carefully managed, including:
• Exchange rate appreciation / Dutch Disease;
• Cost and operation of monetary policy;
• Risk of overheating the domestic economy; and
• Adverse effects in non-mineral sectors of the economy.
He said offshore arrangements for the SWF included: state retaining full ownership and control; promoting macroeconomic stability; underpinning long- term development and socio-economic objectives; helping protect non-mineral sector industries; and were robust, transparent and effective.
Yauieb said the plan was to establish a consolidated pool of offshore funds with three coordinated and integrated funds for infrastructure; stabilisation; and future (savings) fund
He said other plans for the PNG SWF were:
• Fully integrating SWF with the budget and fiscal framework;
• Governance, transparency, disclosure, accountability and asset management rules would be based on international best practice;
• Drawdown rules would be developed to ensure prudent macroeconomic management while supporting development objectives;
• SWF would be overseen by an independent board; and
• Investment would be undertaken by offshore investment manager.
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