PNGSDP signs historic agreement with Western province

By MALUM NALU in Tabubil

PNG Sustainable Development Program (PNGSDP), majority shareholder of the giant Ok Tedi mine, has signed a historic agreement with the Fly River provincial government to ensure that more business opportunities flow down to the people of Western province.

The company currently owns 63.4% of Ok Tedi Mining Ltd (OTML), while the balance of 36.6% is owned by the PNG government.

The agreement was signed after a day-long meeting at the Tabubil Golf Club on Saturday in which representatives from PNGSDP, OTML, and Ok Tedi Development Foundation (OTDF) made comprehensive presentations to a delegation led by Governor Ati Wobiro, and deputy provincial administrator Willie Kokoba.

Wobiro signed the agreement on behalf of his people while board chairman Professor Ross Garnaut signed on behalf of PNGSDP.

Garnaut (left) and Wobiro sign the agreement on Saturday.-Picture by MALUM NALU

It was hailed as the beginning of a new era for Western province, especially given that Wobiro is a former employee of PNGSDP, who is familiar with all its workings.

“I’m sure that with the partnership we have already signed, we can bring our resources together,” Wobiro said in his first major engagement as Western province Governor.

“This is an exciting time for all of us.

“Our people expect us to do things and let’s do the right thing by them.”

Garnaut said Western province had access to a lot of funds from different sources and the way forward was to plan how to use these,

“In everything that we (PNGSDP) do, we hope we can work with the provincial government,” he said.

“We are natural partners in development in this province.

“There are a lot of partners that belong to the province in Department of Finance SSG (special support grants), MRDC (Mineral Resources Development Company).

“What we need to do is we need to have a plan to put the funds from PNGSDP, Ok Tedi, OTDF alongside your funds and build the important business projects that can really make a big difference in taking this province forward.

‘“We have a partner who can work with us to make use of this golden opportunity.

“It will be our great opportunity in turning this this opportunity into achievement.”

Western province launches US$2.3 million vessel

From MALUM NALU in Tabubil
 

Western province’s brand-new US$2.3 million vessel, mv Fly Explorer, was delivered to the people at Kiunga along the banks of the Fly River yesterday (Sunday) morning.

mv Fly Explorer steaming up the Fly River yesterday on its way to Kiunga.-Pictures by MALUM NALU

The state-of-the-art vessel, which will be used mainly for research purposes along the Fly River by Ok Tedi Mining Ltd, is owned by the eight Community Mine Continuation Agreement (CMCA) groups of Middle Fly, Dudi, Kiwaba, Manawete, Suki Fly Gogo, Nupmo, Waitri and Tunwe.

Design, customs and delivery was made possible by the Ok Tedi Development Foundation (OTDF).

Immediately after the dedication prayer and welcome speeches by Western province Governor Ati Wobiro and OTDF chairman and OTML managing director and CEO, Nigel Parker, mv Fly Explorer and its sister ship mv Fly Hope took guests on a cruise and lunch along the Fly River.

Sister ships mv Fly Explorer (right) and mv Fly Hope at the busy Kiunga port along the Fly River in Western province yesterday.

An excited OTDF CEO, Ian Middleton, told The National along the Fly River that this was the beginning of beter things to come for Western province as it started making use of its natural “super highway”.

“It (Fly Explorer) will be used by the (OTML) environment department for riverine sampling,” he said.

“That’s the primary purpose but we’ll also do community relations patrols twice a year.”

mv Fly Explorer features has cabins for 12, a purpose-built laboratory, hydrographic winch for sediment sampling, outboard motor and fishing workshop, and office facilities at the top deck.

It was built to order at Saraway Slipways MRI, Malaysia, and was sailed to PNG by an all-PNG crew led by Captain Pokai Aisuk from the Siassi islands of Morobe province.

This is the second such vessel ordered by the OTDF, the first being mv Fly Hope, a purpose-built 150-person passenger  vessel delivered last April to enable accessibility to services never before experienced by the CMCA communities.

A third vessel, mv Fly Warrior, a 65m bulk cargo/fuel carrier, is expected to be delivered to the people of Western province in November this year.

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?