Sunday, October 31, 2010

MMJV partners accountable for any cyanide incidents

 Morobe Mining Joint Venture partners, Harmony and Newcrest, will be held responsible for any incidents involving cyanide, according to stipulations in the International Cyanide Management Code.

Harmony last week admitted that there were “higher-than-expected” sediment levels in the Watut River, MMJV started paying compensation to affected villagers along the Watut River and Bulolo MP Sam Basil called on villagers not to accept the payouts.

MMJV is paying K2.6 million to affected villagers as the Bulolo joint district planning and budget priorities committee (JDPBPC) has engaged an Australian-based PNG toxicologist to measure pollution levels as well as environmental lawyer Tiffany Nonggor, who is already well-known in the Ramu Nico case.

South African miner Harmony and Newcrest of Australia, which are joint venture partners in the Hidden Valley gold mine in Morobe province, are both signatories to the ‘International Cyanide Management Code For The Manufacture, Transport and Use of Cyanide In The Production of Gold’.

 The code is a voluntary industry programme for the gold mining industry to promote:

  • Responsible management of cyanide used in gold mining;
  • Enhance the protection of human health; and
  • Reduce the potential for environmental impacts.

 “Companies that become signatories to the code must have their operations audited by an independent third party to demonstrate their compliance with the code,” according to the code website.

”Audit results are made public on this web site to inform stakeholders of the status of cyanide management practices at certified operations.”

The website adds: “The code is a voluntary initiative for the gold mining industry and the producers and transporters of the cyanide used in gold mining.

“It is intended to complement an operation’s existing regulatory requirements.

“Compliance with the rules, regulations and laws of the applicable political jurisdiction is necessary; this code is not intended to contravene such laws.

 “The code focuses exclusively on the safe management of cyanide that is produced, transported and used for the recovery of gold, and on cyanidation mill tailings and leach solutions.

“The code originally was developed for gold mining operations, and addresses production, transport, storage, and use of cyanide and the decommissioning of cyanide facilities.

“It also includes requirements related to financial assurance, accident prevention, emergency response, training, public reporting, stakeholder involvement and verification procedures.

“Cyanide producers and transporters are subject to the applicable portions of the code identified in their respective verification protocols.

 “It does not address all safety or environmental activities that may be present at gold mining operations such as the design and construction of tailings impoundments or long-term closure and rehabilitation of mining operations.”

 

Friday, October 29, 2010

MMJV partners signatories to 'cyanide code'

 Morobe Mining Joint Venture partners, Harmony and Newcrest, are signatories to the International Cyanide Management Code ( http://www.cyanidecode.org/). The "International Cyanide Management Code For The Manufacture, Transport and Use of Cyanide In The Production of Gold" (Cyanide Code) is a voluntary industry programme for the gold mining industry to promote:
  • Responsible management of cyanide used in gold mining
  • Enhance the protection of human health, and
  • Reduce the potential for environmental impacts.
Companies that become signatories to the Code must have their operations audited by an independent third party to demonstrate their compliance with the Code.
Audit results are made public on this web site to inform stakeholders of the status of cyanide management practices at certified operations.

Code Signatories

The following companies have signed the Code. Click on a company name for a list of its operations and designation of which operations are intended for certification.
Click here to view a map (below, Papua New Guinea included) showing the countries in which signatory companies have operations designated for Code certification.

Gold Mining Companies

Cyanide Producers

Cyanide Transporters

How Sepiks ended up in Bulolo

By MALUM NALU

Exactly two years ago, in October 2008, I travelled around Bulolo with local MP Sam Basil, checking out various projects in his electorate.
Upper Watut warriors of Bulolo
At Manianda in the Upper Watut local level government, along the road to Menyamya, Wau-Bulolo mayor and long-time Sepik settler, Jack Nawie, sent a blunt warning to criminal elements that there must be “zero tolerance” of crime in these two towns.
Happier days…Wau-Bulolo mayor Jack Nawie (left) with Bulolo MP Sam Basil in Upper Watut… ‘zero tolerance’ of crime in Wau and Bulolo

In retrospect, looking back at what Nawie said that day, I can only say that he has must have had a crystal ball in hand.
I say this in light of the recent ethnic clashes in Bulolo between the local people and Sepik settlers and, to a lesser extent, that between the Watut and Biangai people last year.
Nawie said that fateful day that the two historical gold mining towns were once again experiencing a boom and mining and exploration activities and their “cowboy town” tags must be disposed of to attract more investment.
Aerial shot of a gold dredge in Bulolo. The rivers and creeks around Bulolo and Wau abound with alluvial gold
“As the manager of these towns, I will not tolerate these criminal activities anymore,” he said.
“There will be ‘zero tolerance’ of criminal activities.
“As manager of these towns, I want companies to come and invest here.
“We don’t want the ‘cowboy town’ image of Wau and Bulolo to come back and haunt us.
“We will work closely with all companies already here and those who want to come in as they are bringing services and we want to support them.
“I also want to raise the level of the two towns from urban level 2 to Urban Level 1 because of the current boom in mining and exploration.
“I will work closely with Bulolo MP Sam Basil and other LLG presidents to push for development in these two towns.”
Nawie is originally from East Sepik but, like many others, was born and raised in Bulolo and calls it “home”.
“This is my town and this is my place,” he said.
“My heart lies where I was born.”
 Unfortunately, starting in April this year, fighting in Bulolo started to escalate with more than 5,000 villagers taking part in the raid on Sepik settlers.
Local villagers have been walking the length and breadth of Bulolo armed with guns, knives and bows and arrows in open defiance of police.
Surrounding Sepik settlements including Cement Bridge, Maramba, White House, Biwat, Tambanum, Kapriman, Aitape and Sangriwa have been razed.
The situation has affected the operations of all major companies in Bulolo such as PNG Forest Products (PNGFP), Bank South Pacific, post office, schools, health centre and University of Technology Bulolo campus and retail outlets – forcing all to close.
More than 2,000 settlers have been using the PNGFP camp site as a care centre, having lost everything except the clothes on their backs, and have sought police protection as locals try to penetrate the area.
Amidst all this gloom and doom, it must not be forgotten that the Sepiks of Bulolo are no ordinary settlers.
Their great grandfathers, grandfathers and fathers were pioneers of Bulolo, coming in with the first white men to Bulolo Valley.
They were brought in by Bulolo Gold Dredging, forerunner to the current PNGFP, according to Michael Waterhouse’s brand new book on the Wau-Bulolo goldfields titled Not A Poor Man’s Field.
“Nor did BGD neglect its indentured labourers,” Waterhouse writes.
“Most came from villages in the Sepik district and were recruited for two or three years, usually as general labourers for which they were paid six shillings per month.
“They were used to unload planes, to clear jungle ahead of the dredges and as assistants to the many different tradesmen at Bulolo, telephone switchboard operators, messengers, waiters, labourers, personal servants, cooks and houseboys.
“BGD realised at the outset that, allowing for normal turnover, it would need many labourers, and that it would be more successful in attracting them if they returned to their villages happy that BGD had treated them well.
“The huts were located within compounds, which had electricity, running water and showers and a septic tank sewerage system.
“Close by were gardens containing kaukau, taro, corn, paw paws and bananas.
“There was also a trade store, where goods could be purchased and which distributed food rations and clothing.
“BGD paid particular attention to the health of its labourers.
“They invariably arrived from their villages in a fairly-debilitated condition.
“Within a short time, however, good food and exercise filled out their physique.
“They had access to a high standard of medical services, Bulolo having the best-equipped hospital in the Territory.
“As a result, their mortality rate was considerably less than elsewhere on the goldfields.
“It is hardly surprising that there was never a shortage of villagers from the Sepik and elsewhere lining up to work at Bulolo.”
Indigenous labour was pivotal to the success of the goldfield, and this was provided by a highly-organised indentured labour system.
“An indentured labour system had been developed by the Germans, and this was maintained by Australian military and then civil administration,” Waterhouse writes.
“Labourers were recruited from villages in areas previously opened up to European influence and transported, often over long distances, to where they were needed.
“They signed contracts, at first for one or two years, but in the 1930s more commonly for three, during which they were indentured to specific employers.
“Whereas villagers in New Britain and New Ireland who otherwise lacked access to the cash economy tended to work on plantations, those from the Markham Valley and elsewhere in the Morobe district naturally  gravitated towards the goldfields.
“But as the growth of mining outstripped the district’s capacity to provide the labour needed, many labourers were recruited elsewhere, particularly in the Madang and Sepik districts
“In 1926, there were no Sepik labourers on the Morobe goldfields, but by the late 1930s they accounted for 30% of the total.”
The reason was summed up by researcher Richard Curtain: “The Sepik River and its numerous tributaries provided a unique opportunity for labour recruiters by making possible deep penetration into an unproductive but densely-populated interior.
“The main river is navigable for at least 1,000km for vessels up to 200 tonnes,
“The lack of alternatives cash-earning opportunities meant a readily-available workforce once initial resistance had been overcome and the relative attractiveness of work conditions on the Bulolo goldfields known in the mid-1930s.”
Gotokwa Bengo was about 18 when he went to work for BGD, leaving his village in the Keram River area in the Sepik when he heard that young men were wanted to work on the goldfields, and was taught to operate a pump, near Wau.
“In the morning, the bell would be rung at about 6am and we would get up and set off for work, in that very cold climate,” he says in Not A Poor Man’s Field.
“When I touched the water, it was just like ice.
“At about 12 noon, the bell would go again and we would come back to our quarters for lunch and then go back to work at 1pm.
“The work finished at 6pm and we returned to our quarters to meet our friends.
“Every working day was the same.
“The weekends were the most-exciting times, when we went down to see inter-tribal soccer games, or went down to Salamaua to do our shopping.”
And that ladies and gentlemen, in a nutshell, is how Sepiks settlers came about to Bulolo.

Thursday, October 28, 2010

MMJV admits to “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 "high-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.

Wednesday, October 27, 2010

Letter from Morobe Mining Joint Ventures


Click this linkhttps://docs.google.com/fileview?id=0B5O9bXLWjngZYWY4ZDY2MmMtZGFmNy00YmY1LWE4ZjQtOTQ2OTk0NDI5YWI1&hl=en
 to read the letter that Morobe Mining Joint Ventures has been sending to villagers affected by pollution along the Watut River to receive compensation.
Think twice before responding positively.
You could be signing your life away!

Don't sign this statutory declaration


Please click this link https://docs.google.com/fileview?id=0B5O9bXLWjngZYTlmMWNjM2UtOWIyNC00NjdjLWJlZTgtZDQyZmVkNzdjNjUz&hl=en t
to view the statutory declaration that Morobe Mining Joint Ventures wants villagers living along the polluted Watut River to sign before they receive compensation.
Think very carefully about the consequences before you sign.
You could be signing your own death warrant!

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”.

Tuesday, October 26, 2010

Opening up the Bulldog Track to Papua New Guinea and the world

By MALUM NALU

For anyone interested in diverse environments, superb wildlife, history and grassroots Papua New Guinea, the walk along the World War 11 Bulldog Road (track) from Wau in Morobe province to the spectacular Lakekamu Basin in Gulf province is superb, and not that difficult (since it's downhill most of the way).
Tekadu villagers welcoming MPs Nolam and Basil to a fire-making demonstration
Walking the Bulldog Track is a chance to see a whole transect of PNG cultures and environments from chilly highlands, to the coastal swamps and rivers.
The walk takes you through the heart of the 1920s gold rush area at Edie Creek along a gravity-defying road built during WW11 to relieve Wau from the Japanese siege.
Nolam took the honors to deliver ducklings to Tekadu villagers under the Australian agriculture programme
 The highest point of the track is in primeval moss and rhododendron forests at 3, 000m with amazing views out to the Papuan coast and descends through the Eloa gorge, lined with hoop pine forests to the Lakekamu Basin, where nearly all the major species of fauna in PNG can be found in abundance.
The last part of the trip is a raft or canoe trip down the Tiveri and Lakekamu rivers to the Gulf.
At the moment this area isn't promoted well enough for its eco-tourism potential, which is as yet untapped.
Saying goodbye before taking on the Bulldog Track for Nukewa village in Malalaua, Gulf province
Last week, history was made when Bulolo MP Sam Basil took Queensland state minister for transport Rachael Nolam and Max Willies of Australian High Commission, plus a contingent made up of Bulolo level level government presidents, councilors and staff into Tekadu village along the Bulldog Track and eventually on to Gulf province and Port Moresby.
The team flew into Tekadu on Monday last week from Wau and after launching of flights, walked the Bulldog and traveled by dinghy downriver to Gulf province before ending up in Port Moresby.
The first flight into Tekadu after nine years was made possible by Bulolo joint district planning and budget priorities committee
Tekadu’s 600-plus people are part of the 12 tribes of Watut-speaking people also known as Kukukukus.
Being caught in between Bulolo electorate of Morobe province and Kerema electorate of Gulf province, the Tekadu people have not seen any air services for the past nine years, well, at least until last week.
“Other essential services are non-existent,” Basil recalls after completing the trek.
“Children growing up to be nine years old do not have any formal education and have not seen any planes landing at their rundown strip.
Sick passengers and buai traders loading their bags and boarding the plane for Bulolo airstrip
“Let us not forget the unfortunate children who have lost their lives through birth and other diseases.
“Like many other airstrips in Papua New Guinea, it is sad to see the Transport Minister Don Polye, who is also the Deputy Prime Minister, trying to spend K1.4 billion on Jackson Airport while neglecting such small rural airstrips.
“We are also seeing the same in health with Health Minister Sasa Zibe trying to spend K500 million on the Bautama City Super-Hospital while the rural health facilities are neglected.”
Tekadu culture on show
Basil, in his visit to Tekadu, urged the government to properly allocate the 2011 budget including the 2010 budget surpluses (K800 million-plus) estimated to be totaling over K10 billion, to rebuild aging infrastructure such as rural airstrips, national highways, rural health services, and district road systems to make the lives of rural dwellers easy because they make up over 85% of PNG’s population.
“Almost 90% of Members of Parliament represent rural electorates one way or another and must have rural people included in all their planning,” he adds.
“The Bulolo district joint district planning and budget priorities committee (JDP and BPC) in Dec 2009 installed a VSAT communication apparatus in Tekadu which has opened up communications in and out of Tekadu for almost a year now.
Nolam and Basil with ducks for Tekadu villagers
“The reestablishment of air services through North Coast Aviation (NCA) is just a follow-up service to complement the communication installation.
“Revival of essential services will automatically ride on those two very-important services: communication and transportation.
“A charter was negotiated and paid for a trip every month at the cost of K110, 000.
“The inbound flights will bring in government workers, building materials and medicine while return flights will carry sick and pregnant mothers, as well as buai (betelnut) bags.
“It is estimated that 600 to 700kg of buai can fetch close to K6, 000-7, 000 for those rural farmers.
Buai is the only cash crop in the Tekadu while alluvial gold panning is in its infancy stages.”
Accessing Bulolo and Wau from Tekadu is very hard compared to using the Bulldog Track for Port Moresby.
Its takes almost a whole day’s walk into Nukewa followed by dinghy or dugout canoe trip from Nukewa into Malalaua the next day, then a PMV into Port Moresby if they are lucky, or wait another day so it takes about three days in total.
The costs are K100 boat fare and K60 PMV fare, totalling K160 one way or K320 both ways per person.
So the buai they sell must recoup the fares and pay for porters.
The launching was well attended by all on Monday, Oct 18, while the team took the Bulldog Track the next day.
Bulolo district administration was represented by the Wau rural LLG manager Judy Pokana, Mumeng LLG manager Amon and Waria LLG manager.
LLG presidents included Wau Rural LLG’ John Yawa, Mumeng LLG’s Mathias Phillip, and Buang LLG’s Steven Sep while Waria was represented by its deputy president.
The Bulolo team, including the MP, used the walk to see for themselves the hardship and the obstacles the locals encounter while also collecting data for headquarters in Bulolo upon their return.
On the way in a dug out canoe
“The people of the Gulf village, Nukewa, had a brief meeting with me and reminded me that I was the first MP to trek into their village,” Basil says.
“They told me of their lack of services and asked me to help revive them.
“I reminded them that I am the MP representing Bulolo electorate and would bring their concerns to their local Kerema MP, Pitom Bombom.
“I will, in fact, invite him and will accompany him there to also address the Bulolo people’s concerns in relation to the usage of the track and share some responsibilities for the wellbeing of Bulolo travellers.
“The trip from Nukewa took nine hours along the river system and another five hours into Port Moresby, with a press conference and tour of Parliament House.
“I housed half of the Bulolo team while the other half was accommodated in a guest house in Port Moresby.
“The team returned into back into the electorate on Friday, Oct 22.”

Monday, October 25, 2010

Rich Wafi-Golpu mineral deposits

NEWCREST Mining Ltd and Harmony Gold believe that deposits in their joint venture Wafi-Golpu copper and gold project in Morobe could double in size, The National reports.

Newcrest is the new operator of Lihir gold mine on Lihir Island while Harmony has mining interests in South Africa.

The partners had previously told the market that the resource estimate at Wafi-Golpu stood at 16 million ounces of gold and 4.9 million tonnes of copper.

But latest drilling has further extended the deposit.

The partners have now upgraded their ''exploration target'' to a potential 30moz of gold and 8 million tonnes of copper.

Sydney Morning Herald  newspaper last Friday reported that Newcrest managing director Ian Smith told analysts last Thursday that the Wafi-Golpu was shaping up as a major discovery and would form the basis of a ''major ongoing long life operation into the future''.

A pre-feasibility study is planned for next year and Smith said that could lead to a development decision in 2014.

Smith was speaking on the release of Newcrest's September-quarter production report – its first since acquiring Lihir.

Gold production for the quarter from all operations was 674,219oz.

Newcrest also disclosed in its third quarter ending report that a new operating model it would adopt for the goldmine on Lihir island in New Ireland province would cost an additional US$260 million (K640 million), taking the cost of the mine's optimisation programme from what Lihir had forecast to about US$1.23 billion (K3.2 billion)

But the additional cost was more than covered by the additional 10 million ounces it would contribute to mine production out to 2040.

Newcrest's cash costs at A$488 an ounce for the quarter were up from A$342 an ounce in the previous quarter due to the inclusion of Lihir's higher-cost operations, the impact of lower grades and exchange-rate movements.

The gold production effort was lower than the market expected.

 

Sunday, October 24, 2010

Reviving Tekadu’s transport and communication services


By SAM BASIL
Bulolo MP

Tekadu villagers welcoming MPs Basil and  Nolam to a fire-making demonstration.
Tekadu’s 600-plus people are part of the 12 tribes of Watut-speaking people also known as Kukukus.
They do not really know where their hearts lies when deciding on which electorate they belong to.
Being caught in between Bulolo electorate of Morobe province and Kerema electorate of Gulf province, the Tekadu people have not seen any air services for the past nine years.
Other essential services are non-existent.
Children growing up to be nine years old do not have any formal education and have not see any planes landing at their rundown strip.
Let us not forget the unfortunate children who have lost their lives through birth and other diseases.
Like many other airstrips in Papua New Guinea, it is sad to see the Transport Minister Don Polye, who is also the Deputy Prime Minister, trying to spend K1.4 billion on Jacksons Airport while neglecting such small rural airstrips.
We are also seeing the same in health with Health Minister Sasa Zibe trying to spend K500 million on the Bautama City Super-Hospital while the rural health facilities are neglected.
In my visit to Tekadu last week, I asked the government to properly allocate the 2011 budget including the 2010 budget surpluses (K800m-plus) estimated to be totaling over K10b, to rebuild aging infrastructures such as rural airstrips, national highways, rural health services, and district road systems to make the lives of rural dwellers easy because they make up over 85% of PNG’s population.
Almost 90% of Members of Parliament represents rural electorates one way or another and must have rural people included in all their planning.
The Bulolo district joint district planning and budget priorities committee (JDP&BPC) in December 2009 installed a VSAT communication apparatus in Tekadu which has opened up communications in and out of Tekadu for almost a year now.
The reestablishment of air services through North Coast Aviation (NCA) is just a follow-up service to complement the communication installation.
Revival of essential services will automatically ride on those two very-important services: communication and transportation.
A charter was negotiated and paid for a trip every month at the cost of K110, 000.
The inbound flights will bring in government workers, building materials and medicine while return flights will carry sick and pregnant mothers, as well as buai (betelnut) bags.
It is estimated that 600 to 700kg of buai can fetch close to K6, 000-7, 000 for those rural farmers.
 Buai is the only cash crop in the Tekadu while alluvial gold panning is in its infancy stages.
Accessing Bulolo and Wau from Tekadu is very hard compared to using the Bulldog Trail for Port Moresby.
Its takes almost a whole day’s walk into Nukewa followed by dinghy or dugout canoe  trip from Nukewa into Malalaua the next day, then a PMV into Port Moresby if they are lucky, or wait another day so its takes about three days in total.
The costs are as follow K100 boat fare K60 PMV far, totalling K160 one way or K320 both ways per person.
So the buai they sell must recoup the fares and pay for porters.
The launching was well attended by all on Monday, Oct 18, while the team took the Bulldog Trail the next day.
The team was accompanied by Queensland State Minister for Transport Rachael Nolam and Max Willies of Australian High Commission.
 Nolam took the honors to deliver ducklings to Tekadu villagers under the agriculture programme
Bulolo district administration was represented by the Wau rural LLG manager Judy Pokana, Mumeng LLG manager Amon and Waria LLG manager.
LLG presidents included Wau Rural LLG’ John Yawa, Mumeng LLG’s Mathias Phillip, and Buang LLG’s Steven Sep while Waria was represented by its deputy president.
The Bulolo team, including the MP, used the walk to see for themselves the hardship and the obstacles the locals encounter while also collecting data for headquarters in Bulolo upon their return.
The people of the Gulf village, Nukewa, had a brief meeting with me and reminded me that I was the first MP to trek into their village.
They told me of their lack of services and asked me to help revived them.
I reminded them that I am the MP representing Bulolo electorate and would bring their concerns to their local Kerema MP, Pitom Bombom.
I will, in fact, invite him and will accompany him there to also address the Bulolo people’s concerns in relation to the usage of the track and share some responsibilities for the wellbeing of Bulolo travellers.
Saying goodbye before taking on the Bulldog Trail for Nukewa village,  Malalaua, Gulf province
The trip from Nukewa took nine hours along the river system and another five hours into Port Moresby, with a press conference and tour of Parliament House.
I housed half of the Bulolo team while the other half was accommodated in a guest house in Port Moresby.
The team returned into back into the electorate on Friday, Oct 22.