PNG to discipline mining companies in breach of mining laws

Posted by PNG Today

Papua New Guinea Minister for Environment and Climate Change, Geoffrey Kama has informed stakeholders that his Ministry and the Department of Environment and Climate Change will strictly follow the existing laws to discipline any mining companies in breach of any laws governing the mining industry and there are no short cuts in shutting down the mines.

Kama said this when meeting with the Basamuk landowners on Sunday last week at Basamuk Refinery in the Rai Coast District of Madang province.

He went to have an independent assessment on the Refinery’s’ Saturday 24 August slurry spill into the Basamuk harbor. His senior officers including Managing Director of CEPA, Gunther Joku and deputy managing director, Michael Maue including Madang Governor Peter Yama accompanied him to Basamuk.

Ramu NiCo President Gao Yongxue and his vice president Wang Baowen received the minister and his delegation in Madang and accompanied them to Basamuk.

This is the second visit of a senior state minister after Mining Minister, Johnson Tuke who visited Basamuk Refinery for an independent assessment on Tuesday 27 August in his capacity as the Mining Minister.

The Environment Ministers visit follows after his chief investigators from CEPA, Lave Michael, Joseph Umare and Robert Sine, Manager Mining with MRA were on the ground at Basamuk on Monday Aug 26 to conduct an investigation into the slurry spill.

Kama told the principal Basamuk landowners that Marape-Stevens government will not go ahead and shut down Ramu NiCo Project or Basamuk Refinery as demanded but will strictly follow the laws so that all parties are given fair treatment.

The minister’s call came after the landowners demanded that Basamuk Refinery be closed following the slurry discharge and other outstanding matters including socio-economic benefits.

Last week, Member for Rai Coast, Peter Sapia, Madang Governor Peter Yama and the landowners demanded for the closure of Ramu NiCo Project.

But Kama said investigation into the alleged slurry spill is still underway by the Mines Inspector and Mines Inspectorate alone has the power to shut down the mine and not him.

Meanwhile, Als Environment Testing Laboratory in Brisbane, Australia will analyse the sea water samples collected from Basamuk Refinery to determine the concentration of heavy metal level in the sea area where the slurry entered after slurry overflow on Saturday 24 August at the refinery.

Ramu NiCo Management (MCC) Ltd designated ALS Ltd, an internationally recognised laboratory specialising in environmental analysis services to analyse the samples to give credibility to the final report that will be produced by MRA and CEPA.

Vice president of Ramu NiCo, Wang Baowen said the Australian based company was selected after full consideration was given to accredited laboratories in PNG and abroad.

He said after uncertainties and speculations have been created by various groups, Ramu NiCo wants to put these concerns to rest by results ALS Ltd will provide.

“We understand the concerns of our landowners and the government.

We know many people want to engage their own consultants. The best we can do is engage an independent and credible third party like ALS so we all accept their analysis,” Mr Bao said.

“The inspectors from CEPA and MRA who investigated the incident will separately receive the results and make their own recommendations, off which we will accept and implement as required.”

He said ASL Ltd has branches throughout Australia and its head office in Brisbane where the heavy metal testing will be done and results anticipated for return approximately within two weeks from Friday last week.

“Under CEPA direction, we have collected seawater samples from five different locations, the primary one being the slurry discharging point within the harbor.

Samples collected vary in depth from the surface, including five meters below the surface to enable cross section of sampling to determine concentration of potential heavy metal at different layers of the harbour,” Mr Bao said.

“CEPA and Ramu NiCo will receive the test result directly, although separately from the Brisbane analysis laboratory.

“CEPA and MRA will interpret the analysing result and determine whether there are significant impact on the harbour and surrounds.

Ramu NiCo will also use the result from third party, ASL and Basamuk Central Chemical Laboratory to analyse and report to CEPA and concerned government bodies.’’

He said Ramu NiCo is committed to get to the bottom of the investigation by engaging third parties and the notable laboratory in Australia.

Go to this link for more: https://news.pngfacts.com/2019/09/png-to-discipline-mining-companies-in.html

Papua LNG Agreement Shaping Up

By Meriba Tulo, EMTV News, Port Moresby

The National Government has now granted approval for Papua LNG project to proceed with the implementation of the Project Gas Agreement, following an NEC sanctioned review.

Prime Minister James Marape, and Petroleum Minister Kerenga Kua addressed the media this afternoon, outlining the State’s position on several issues including National Content, Petroleum Pipeline Third Party Access, Pipeline Ownership, and LNG Tankers.

The Prime Minister expressing his reluctance to sacrifice the greater interest of the country in the haste of getting projects secured or undertaken.

“Our minister has undertaken in the last 90 days the fullest appreciation of the court agreement in totality the context of law we have, and ah has made greater approaches to the project partners to ensure that we secure what needs to be secured within the context of what is our rights and entitlements. Respecting the agreement that was signed before we took office.”

The Petroleum Minister explaining the importance of engaging PNG owned and operated companies under existing and future agreements

“Citizen-owned PNG-based companies who’ve been here during hard times, good times, bad times, they should now be given an opportunity to contract to the project and ensure they will make sure that some of these constructions span is kept in this country and we’ve gone for as much as we can and uh total has agreed they agreed with the spirit and intent of that approach however that approach however the appropriate time to discuss that approach will be after the project designs have been finalized which is what they call FEED then we can assemble a technical team on both sides and we can use a pencil to mark out what should go to the contractor, the operator to engage and what should be contracted out to Papua New Guinean-based companies”

“And so they’ve agreed that in principal the states participation will be maximized and that spirit will be respected so that commitment to keep an open mind and an open heart about maximizing opportunities for Papua New Guinean companies, landowner companies, provincial government companies during the construction phase is left open and we will approach it with that spirit in mind.”

These agreements now pave the way for the State to realize increased National Content during the construction phase, future pipeline ownership, and future shipping ownership, which the leaders say are substantial gains

Go to this link for more: https://emtv.com.pg/papua-lng-agreement-shaping-up/?utm_source=dlvr.it&utm_medium=twitter

Papua New Guinea sticks to gas deal with Total for $13 billion project

By Sonali Paul - Reuters

MELBOURNE (Reuters) - Papua New Guinea said on Tuesday it will honor a gas deal that Total SA signed with a previous government for a $13 billion plan to expand gas exports, after securing minor concessions from the French company.

The decision removes uncertainty over the plan to double liquefied natural gas (LNG) exports from the Pacific nation that arose after new Prime Minister James Marape came to power in May promising to win more benefits for the impoverished country.

The Papua LNG gas agreement is one of two agreements needed for Total and its partners, Exxon Mobil Corp and Oil Search Ltd, to go ahead with the LNG expansion plan.

“The government has now cleared Total to proceed full steam ahead with the implementation of the Papua Gas Project,” Petroleum Minister Kerenga Kua said in a statement.

Doubts about the gas deal escalated in August, when the government suddenly called for talks to revise the agreement.

Kua said Total had made some concessions, promising to prepare a detailed plan outlining how much local equipment and services would be used in the project and to negotiate with any third party wanting access to the project’s petroleum pipelines.

It would also be willing to negotiate for Papua New Guinea to take a stake in the pipelines after the state has repaid all its loans and costs on the project, and would consider buying LNG carriers in a joint venture with the state. “Most of these are substantial new concessions on potential future benefits,” Kua said.

The companies had insisted that the Papua LNG gas agreement that Total signed in April should be honored, and Oil Search warned in August that costs on the project could rise if it was delayed by prolonged talks.

An analyst said the government had capitulated to Total, winning only non-committal offers to consider future steps that might benefit the country.

“This is a big win for the industry, but they can’t say that, because they need to let the prime minister and Kua save a little political face,” said the analyst, who declined to be named due to the sensitivity of the issue. The three companies welcomed the government’s decision.

“We are looking forward to working with the Government of PNG to conclude the required gas agreement for the P’nyang project,” Exxon Mobil said in an emailed comment, referring to the second of the two agreements needed.

Oil Search’s Managing Director Peter Botten said the project would “help deliver billions of kina in value to the PNG economy, support local businesses and provide greater employment opportunities for thousands of Papua New Guineans,” referring to the PNG currency. Shares in Oil Search, which have dropped over the past three months amid uncertainty over the gas agreements, closed 2.1% higher shortly after the government’s announcement in a flat broader market.

“There should be a handsome re-rating,” Adrian Prendergast, an analyst at Morgans, said a day ahead of the announcement.

“In the time the political developments have been happening it (Oil Search) has really derated more than the total value that we place on this expansion.” At Monday’s close, Oil Search shares were down about 14 percent since the previous prime minster stepped down.

Go to this link for more: https://uk.reuters.com/article/uk-papua-total-lng/papua-new-guinea-sticks-to-gas-deal-with-total-for-13-billion-project-idUKKCN1VO115