Sir Mekere Morauta is new chairman for Ok Tedi Mining Ltd

The board of PNG Sustainable Development Program Ltd announced yesterday that it had accepted the resignation of Professor Ross Garnaut as PNGSDP’s nominee chairman and director for Ok Tedi Mining Ltd.  

 PNGSDP is the majority shareholder of Ok Tedi Mining Ltd, owning 63%. 

 The board of PNGSDP has nominated its chairman, Sir Mekere Morauta, to succeed Ross Garnaut on the board of Ok Tedi Mining Ltd.   

Sir Mekere Morauta

 Sir Mekere, speaking on behalf of the PNGSDP board, paid tribute to Professor Garnaut’s role in PNG’s largest mining company.  

 “Ross Garnaut was an inaugural director of the new OTML when it became majority PNG-owned in 2002, and became chairman on 01 January 2011.   

"So Professor Garnaut has played a pivotal role in the growth of both PNGSDP and Ok Tedi Mining Ltd, and has overseen a very significant development contribution to the nation and to Western province.

 “I believe Papua New Guineans will look back on his contribution with a sense of gratitude.  
"I would like to publicly thank him for all he has done at PNGSDP and OTML. 

" Ross Garnaut’s connection with Papua New Guinea goes back 47 years. 

" I can think of no other person, Papua New Guinean or expatriate, who has contributed more to the making of good policies, outcomes and organisations in modern Papua New Guinea.”

 Sir Mekere said that when he took over from Professor Garnaut as chair of PNGSDP in October last year, he asked him to stay on as chairman of OTML to oversee a succession plan for a Papua New Guinean replacement, and to see a number of very important projects through to completion, including mine life extension, mine closure planning and engagement with other companies in exploring potential cooperation in development of ore bodies close to Ok Tedi in the adjacent Star Mountains and at Frieda River.

 However, Sir Mekere said, the government’s decision to not allow Professor Garnaut to travel to Papua New Guinea for the time being meant that appointment of a new chairman had to be brought forward as Professor Garnaut could not continue to chair OTML from overseas.  

A magical journey up the Fly River

By MALUM NALU

Evening along the mighty Fly River, Western province.

It is 9pm on Friday, January 4, 2013, and somewhere along the river, our good ship the mv Sepura comes to a grinding halt.

mv Sepura at Torro Passage, at the mouth of the Fly River.-All pictures@MALUM NALU

I jump out of my comfortable, spacious, air-conditioned cabin, to find out what is going on

Out on the cold, windy deck, the crew tells me that we have run aground on a sandbank – just another day in the life of a Fly River ship – and there is no need to panic.

We are on our way to Sturt Island in South Fly, 100 river miles (160km) from the mouth of the Fly, for the launch of the K19 million cargo and fuel carrier mv Fly Explorer tomorrow, and then another 100 miles further upstream to Obo in Middle Fly for the second launch of Sunday.

I’m dead tired, today being a long day of travelling, and I crawl back into my blankets, but find that I suddenly can’t sleep, and keep on wandering in and out of my cabin.

I flew out of Port Moresby at 1.10pm today with fellow reporters Ancilla Wrakuale from Post-Courier, Fabian Hakalits from EMTV, and Mackhenly Kaiok from Ok Tedi Development Foundation.

We arrived in Daru about an hour later, were met at the airport by OTDF CEO Ian Middleton, and from there it was straight to Daru wharf where we boarded a dinghy for the mouth of the Fly, for a rendezvous with Sepura.

Ok Tedi Development Foundation CEO Ian Middleton, a young and vibrant PNG boy born and bred in Madang, Fabian Hakalits of EMTV, Ancilla Wrakuale of Post-Courier and me heading out of Daru on a dinghy last Friday afternoon for the mouth of the mighty Fly River to begin our 200-mile river cruise.

Twas a glorious Friday afternoon as we sailed up the Fly, all the while mesmerised by the beauty of the river, islands, villages, and, of course, the poetic sunset splashing its golden rays upon this great water way of Papua New Guinea.

Magical sunset along the Fly River last Friday as we cruise upriver on board mv Sepura

Magical sunset along the Fly River last Friday as we cruise upriver on board mv Sepura

Then, a lovely dinner of rice and curried prawns, where you could be forgiven for thinking that you were in some upmarket restaurant, and not a ship heading up the Fly River.

Finally, at 4am on Saturday, January 5, some seven hours later, we come undone from the sandbank and are able to rock and roll & roll up the river again.

A hot shower, breakfast, and everyone is up on deck early to watch the river panorama unfold before our eyes.

Meeting house at in a South Fly village along the mighty Fly River

Captain Noah Mossman, an officer and a gentleman because of his naval upbringing, explains that Fly River boat captains have many natural hazards to deal with, and to take a ship upriver is an art within itself.

“We have to deal with so many things including natural sandbanks, tides,” he tells me.

Captain Noah Mossman in the wheelhouse of mv Sepura

“Sandbanks, such as the one we encountered last night, are things that nature put and we don’t have any control over.

“It’s a nightmare for every captain.

“It was a sandbank we encountered last night, but the tides were not in our favor, which kept us stuck for so long.”

We meet Fly Warrior near Sturt Island and both ships move upstream for the colorful celebrations.

Middleton commended the 156 villages that currently benefit from the Ok Tedi Community Mine Continuation Agreement (CMCA) for their decision to invest in the Fly Warrior.

Fly Warrior near Sturt Island

She is the third vessel after the arrival her two sister ships Fly Hope and Fly Explorer last year.

Apart from the three vessels, the CMCA villagers also have two brand-new Twin Otter aircraft, both of which were delivered towards the end of last year.

“I’m happy because you people of South Fly are happy,” Middleton tells a cheering crowd.

Ok Tedi Development Foundation CEO Ian Middleton addresses the crowd, including children, on Sturt Island

“I’m happy to deliver this vessel, your vessel.

“I’m very pleased, happy, and humbled at the effort you people have shown in accepting this vessel.

“It shows that you are willing to accept change.

Villagers sing to welcome mv Fly Warrior to Sturt Island

“You can create change and you can bring about prosperity in South Fly.”

Middleton explained that their CMCA funds were held in trust development funds and trust investment funds, with all villages having a say in how these monies were used.”

Sturt Island welcome for mv Fly Warrior

“That money is to make investments that go beyond mine life,” he said.

“We have to spend the investment funds as soon as possible so that we can make money for you

“All that money (from investments) goes into your development funds.”

Beautiful Sturt Island

Middleton said in the case of Fly Warrior, the 65m bulk carrier would be on dry hire to Ok Tedi Mining Ltd (OTML), and would be generating a minimum 8% return per annum, and 32% residual,  on a capital investment of K19 million.

“We have secured the vessel on behalf of the CMCA people,” he said.

“It will be on lease to OTML for 15 years.

“The same principle applies to the two other vessels and the planes.

“These investments actually work for your development future.”

After celebrations, we take a look at facilities around the island including OTDF facilities, the steep airstrip, and others.

As the Fly Warrior leaves, the media crew takes a ride on a dinghy to take pictures of her as she makes her maiden voyage up the Fly.

The brand-new K19 million mv Fly Warrior powers up the Fly River

Then it’s back to Sepura, where we say our reluctant goodbyes to Sturt Island and the wonderful people, and we resume our river voyage.

Nothing eventful, as everyone is tired after another long day, but as we are having dinner: “Thud!”

We’ve run aground again!

And so, for the next few hours, as we retire to our cabins, good old Captain Noah Mossman and his officers work on getting us afloat again.

Early Sunday morning, we’re chugging up the Fly, the landscape changing as we hit the massive floodplains of the Fly, which are rich in wildlife.

We see many a deer – a delicacy for the local people – standing on the banks of the river watching us.

Then, the moment I have been waiting for arrives, as we arrive at the point where the Strickland gushes out to meet the Fly.

The confluence of the two great rivers makes me so emotional, however, blame it on the rain, I can’t take good pictures!

A short haul up and we arrive at Obo, Middle Fly, more than 200 river miles up from where we started on Friday.

Here, Western Governor Ati Wobiro and other dignitaries including PNG Sustainable Development Program CEO David Sode and OTML management arrive on one of the new Twin Otters, for the second launching of Fly Warrior.

Twin Otter carrying Western Governor Ati Wobiro arrives in Obo, Middle Fly

That done, the media crew hops on a chopper for a ride across the vast flood plains and Lake Murray, the largest lake in PNG, for Kiunga (where we drop off Sode for his flight back to Port Moresby), while we continue on to Tabubil.

Fly River flood plains, Middle Fly

To think that we have travelled from the mouth of the Fly River near Daru to near its headwaters in the Star Mountains, a journey of over 600 miles (965km), fills me with awe. 

Fly River, Middle Fly

Absolutely magical!

Fly Rivers runs through the river port of Kiunga

Prominent Lae company raises concern over illegal leases at old airport

By MALUM NALU

Concern over perceptions of illegal squatting has prompted a prominent Lae company to come out and clarify the presence of thousands of containers at the old Lae airport.

Riback Stevedores stores upwards of 2, 000 containers on the old airport and has had a presence there since 2009. 

Riback container yard at the old Lae airport.-Picture by MALUM NALU

General manager of Riback Stevedores Peter Boyd said yesterday that perceptions amongst certain groups that Riback was using the land without authority and not paying rental was “totally baseless and untrue”.

Riback operations manager George Gware queried why the provincial government and Lands Department do not look at the use of the seaside end of tarmac by several major companies as an example of ‘illegal’ occupation.

 “We pay a very high market rate to a legitimate titleholder, Lae Urban Local Level Government (LULLG), yet other companies are occupying the airport land free of charge,” he said.

 Investigations with Lands Department verified that one of these companies is attempting to obtain a state lease on Portion 360 (seaside block at end of the tarmac), while another application for a prominent block of land is underway, despite neither applicant complying with many requirements of the Lands Act.

Gware said a fence was recently put around a block of land opposite Angau Hospital by another construction company less than a month ago “in nothing more than a blatant attempt to steal more state assets”.

Boyd said in October 2009, LULLG and Riback entered into a joint venture agreement to use the tarmac for storage of LNG cargo in the initial stages while the 11-Mile LNG lay down area was under construction.

He said in August 2011, Riback and the LULLG agreed on a long-term lease agreement for a significant portion of land.

“Development of the lease area is progressing and Riback expect to vacate the tarmac by mid-2013 and move onto the developed land at the same time,” Boyd said.

 “Our company pays in excess of K2.25 million annually to the LULLG for the lease of this land and we employ 100 staff at the inland terminal.

“Prior to 2009, the containers would have been stored at the Lae port and this has lessened the port congestion significantly”.  

“I consider the arrangement with the LULLG to be of great benefit for the people of Lae and that the income earned by the LULLG will undoubtedly improve service delivery to the ratepayers of Lae.

“Our good relationship with the LULLG has enabled us to ease serious problems with lack of space at the Port and at the same time has provided viable storage alternatives to the high PNG Ports storage charges.”

Riback Stevedores is a joint venture between Ahi Holdings - the umbrella company for the six Ahi villages of Butibam, Kamkamung, Hengali, Wagang, Yalu and Yanga - and Consort Express Lines (CEL) and has been operating at the Lae port for 40 years under various names.

Agriculture minister dismisses allegations against coffee CEO

By MALUM NALU

Agriculture and Livestock Minister Assik-Tommy Tomscoll has dismissed allegations of mismanagement leveled at Coffee Industry Corporation (CIC) chief executive officer Navi Anis by the CIC board.

In an eight-page letter to CIC board chairman Patrick Komba, dated January 8, 2013, Tomscoll said the serious allegations made against Anis by the CIC board since last August held no water and dismissed them all.

Navi Anis

He said action would be taken against certain board members in due course.

There has been bad blood between the board and Anis since last August, with a series of letters written to Tomscoll, one of which went as far as recommending the CEO be suspended.

The letters, among other things, alleged lack of growth in the industry, deferral of board meetings, and non-performance by the CEO.

“In my qualified view, and assessment, all the allegations have no basis, are inconclusive, and not supportive by specific evidence to show criminal element of maladministration and misappropriation,” Tomscoll said in the letter, a copy of which was obtained by The National.

“I consider that all the allegations raised in your various letters are now settled and my decision will remain final.”

Tomscoll also asked why CIC board member Peter Kewa, who was one of those aggressively pushing for the removal of Anis, was doing this when he was one of those involved in the infamous Panga court case of the 1990s that cost the CIC millions of kina.

“I am frantically amazed that certain of your board members can proudly claim innocence and conveniently forget their involvement at board level to advance more than K10 million of growers’ monies to a failed scheme constructed by Panga Coffee Ltd,” he told Komba in the letter.

“This case was prolonged in court over a long period, resulting in more monies lost by CIC.

“Eventually, CIC was awarded more than K40 million for loss and damage but could not recoup this money because the company, Panga Coffee Ltd, was without asset.

“This matter affected a lot of growers and was partly responsible for the collapse of the industry, which others in later years spent valuable time resurrecting.

“I must say that I am too well aware of this fiasco.

“I am also aware that certain of the members of the board are not coffee growers or processors, and occupy positions at the board level under pretext.

“Anyway, these are matters I will deal with in the course of time, but meantime, I will deal with your board with the highest care, restraint, and caution.”