Frieda River (SMLA9) Mining Warden Hearing

Frieda River copper and gold project is located at the border of East and West Sepik. The holder of the exploration license EL58 lodged an application  for a Special Mining Lease on 24th june 2016. This date is the date at which the application was registered by the Registrar of Mineral Tenements. This process is pretty much similar to that of land lease process.

As per the process, the Registrar upon registration gives notice to the Chief Mining Warden and other officers for technical appraisal. This triggers the next procedure which is the Warden Hearing Process. the Chief Warden together with the registrar fixes a date and time and venue and notify impacted stakes holders regarding the hearing. This is a public forum for the impacted stake holders where the views of the impacted people are gauged.

As such, the above process were followed and Mining Warden hearing was conducted at several venues. The Application was not only the SML application but some other auxiliary leases as well such as lease for mining purposes (LMP), Mining Lease, Mining Easements (ME). To cater for all these leases, there were several venues fixed for hearing. the impacted communities of the Frieda River Project include but not limited to the following:

* Wabia village

*Ok Isai Air strip

*Kubkain village

*Iniok Village

*Aum 3 Village

*Wemimin 1 & 2

* Hotmine Mission Station

The Views of the people were gauged and report compiled for further deliberation. The views of the people were either supportive or objective. The the job of the mining warden is the record all good or bad comments and compile report and also give his/her view.

The other part of the technical assessment is another process which is dealt with by the technical assessment team.

Chief Mining Warden, Andrew Gunua was  Conducting Mining Warden Hearing at Ok Isai, for the Frieda River SML 9 Application in the West Sepik Province 

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Wafi-Golpu Mining Warden Hearing at Wenebele and Bawaga Villages.

The Mining Warden Hearing for Wafi-Golpu Support tenements for SML 10 application commenced on Monday the 2^nd of July 2018 at Wenebele and Bawaga Villages.

The Wenebele village of Yanta clan and Bawaga Village of Hengambu comprising of Elemu Gwagu and Demagu clans and Wonkins Village of Babuaf Clans are the primary landowners of the SML area and together with the LMPs and MEs under application for the Wafi-Golpu Joint Venture.

Yanta clan have four groups while Hengambu has three Landowner groups/clans have turned up during the meeting in numbers and gave their views in regards to the tenement applications.

Firstly, the Community Affaires superintendent of Wafi-Golpu Joint Venture, Mr.David Masani introduced the warden hearing team to the landowners and opened with a word of prayer to commence hearing. Then handed over to chief Mining Warden of Papua New Guinea, Mr, and Andrew to actually proceed into the Mining Warden Hearing.

The Chief Warden , Mr, Andrew Gunua conducted the Mining Warden Hearing  for Mining Easements comprise of ME 91, Me 93, ME 94. He explained the process of application with displays of posters and explained simplified illustrations with the flow chats of how an SML and supporting tenements are granted following due processes.

He further explained the warden hearing procedure and order of hearing.

The Chief Warden then allowed the company representative to explain to the warden hearing parties of the amendment to the orginal applications and the new work plans and David Masani explained exactly the company’s intention for the three amended ME applications.

The Chief Warden after recording the company’s work plan, he allowed the landowners to give their views whether they support the company’s application or object the applications. The people raised few concerns and asked few questions for the benefit of doubts of which the Chief Warden provided response which were of satisfactory to them.

The Chief Warden then closed the meeting upon satisfying all the requirements under the Mining Act 1992 regarding wardens hearing.

Further questions regarding benefits and other agreement meetings were raised after the meeting and the landowners were advised that, there will be a Development Forum of which the Mining Minister will officially open for them to further discuss matters of this regard.

The Project Coordinator Moses Mambu briefly explained the Development Forum to the landowners and the landowners were looking forward to the Development Forum later during the month.

The same procedure was followed at the Bawaga Village and warden hearings for ME 91, me 93 and ME 94 at both venues were successfully completed. These conclude the Mining Warden Hearing for the First Day and the warden hearing team anticipates  to complete the rest of the hearings in the remaining days.



Chief Mining Warden, Mr.Andrew Gunua Explaining the Flow Chat for SML Application Process at Yanta Community Hall

Landowner Acting Deputy President of Yanta, Mr.Johnson Ruben Responded during the Warden Hearing at Wenebele(Yanta Community Hall)

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Wafi-Golpu SML 10, Mining Warden Hearing for Supporting Tenements.

The Wafi-Golpu Joint Venture is a 50/50  joint venture between Newcrest and Harmony Gold to fund and operate the Wafi-Golpu porphyry gold-copper deposit in the Morobe Province of Papua New Guinea.

The Wafi-Golpu Joint Venture has applied for a Special Mining Lease SML10 with the Mineral Resources Authority(MRA), together with supporting Tenements such and Lease for Mining Purposes(LMP) and Mining Easements(ME).

Mining Warden Hearing is one of the requirements under the Mining Act 1992 and is part of application process for lease grant. Thus, part of the hearing for SML 10 were conducted in 2016 .

Due to some technical considerations, part of the feasibility study was ongoing during the submission of SML 10. Thus, some of the support Tenements were lodged with the MRA  later in 2017-2018.

As such, Mining Warden Hearings for the support Tenements will be conducted on the 2nd July 2018 to 5th July 2018.

The Hearings will start at Yanta Community Hall and Hengambu Community Hall on Monday 2/7/18.
Then on Tuesday 3/7/18 Hearing will continue at Babuaf Community Hall.
on Wednesday,4/7/18 Hearing will be at Wampar LLG Hall near Nadzap airport and at Zifasing at 40 Mile.
On Thursday 5/7/18, Hearing will conclude at Lae indoor sports stadium and Wagang Hall.

The awareness of the Tenements were  conducted by the company officers at the affected communities and the landholders of the affected communities are expected to turn up during the fixed dates and time to give their views whether to support or object the applications and their proposed Tenements/facilities.

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Ramu Nickel Mine Prepares for Royalty Payment

The Ramu Nickel and Cobalt Mine in Kurumbukari, in Madang Province is preparing to pay long waited royalty to the landholders. This was reported in the National News Paper dated 28th December 2017.

Landholder Royalty for Ramu Nickel Project has not been paid since shipment till to date. This delay could be due yo the tax holiday given to the developer by the government or as a condition in the Mining Developments Contract(MDC).

This matter was brought to light but it was further delayed since then to settle administrative processes. It is now looking promising as the developer takes initiative to organize the landholders in preparation for royalty and other benefits that are ongoing.

The Mining Act 1992 is somewhat drafted in way as to cater for landholders grievances and expectations. Like in the case of landowner royalty, it will he paid directly into their accounts rather than landowners front the company's office or government's office to get their rightfully due payments.

Credits to MCC for this step towards royalty payment.

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Mining Warden Hearing in Papua New Guinea

Mining Warden Hearing is an open forum to gauge public views of the people who would be affected by an exploration work program or any activity related to mining. It is one of the requirements in the Mining Act 1992 for any kind of mining related licence/lease grant.

Warden Hearing is conducted in accordance with Section 108 of the Mining Act 1992. During the Mining Warden Hearing, the warden on the ground explains the purpose of the meeting and allow the applicant or an agent  of the applicant to explain the work program in brief to the stakeholders present. The applicant/agent explains the work program or the proposal for development to the warden and the people at the hearing venue on the date and time fixed for the hearing.

The warden then allow the people who are within the tenement boundary or  just around the tenement boundary who would be affected by the applicant's proposal for development to give their views and further advise them to make clear their stand with reasons whether they support the application or otherwise. The warden then records and assess the views of the affected landholders.

The warden also allow people whom he considers that, the work program for the applicant will also affect them to give their views as well and he will record and assess them.

Finally the warden allows the local government representative of the host province if any present at the hearing venue on the date and time fixed for hearing to give the views on behalf of the host government whether it could be Local Level Government or Provincial Government.

Without further delay the warden thank all the people for fulfilling the requirements under the Mining Act 1992 under Section 108.

The warden may adjourn the hearing from time to time and from place to place where feasible and economical.

The Warden prior to opening the hearing, he explains that anything related to land disputes and environment matters are not discussed in this forum.  Such disputes or issues are to be brought forward to relevant government bodies to address them accordingly. i.e. Land dispute matters to be brought to the attention of Lands and Physical Planning Department and Environment matters to Conservation and Environment Protection Authority (CEPA).

Mining Warden Hearing at Ok Isai, for the Frieda River SML 9 Application in the West Sepik Province 

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Bulolo Opposing New Exploration

 
The Bulolo people (both local & Business Communities) have overwhelmingly objected the Exploration Licence Application lodged by Wabu Alluvials Limited which is also a local company.

 As a process of licence grant, the applicant must meet the requirements specified in the Mining Act 1992 of the Independent State of Papua New Guinea.

Wabu Alluvials Limited lodged an Exploration License Application with the Mineral Resources Authority (MRA) to obtain an Exploration Licence to explore for minerals. While the licence is under the process of granting or refusal by the Minister for Mining, the local communities and the business communities lodged written objections with the Mineral Resources Authority through the office of The Chief Mining Warden. The landholders objected the ELA stating that the company will disturb their environment and also interrupt their routine business activities. They even published on the National News Paper through the Bulolo District Administrator Tae Gwambelek.

It is a requirement under the Mining Act 1992 that the applicant must facilitate a Mining Warden Hearing which is conducted by the appointed Mining Warden to gauge the views of the affected landholders, pursuant to Section 108 of The Mining Act 1992.  Once the views of the affected landholders are gauged, a report of this hearing is provided to the Mining Advisory Council (MAC) for further deliberation to the Minister for Mining. Finally, the Mining Minister has the final authority whether to grant the licence or otherwise based on MAC’s Advice.

All the related licences/leases specified under the Mining Act 1992 follow the same process. This is transparent and views of the affected stakeholders are fairly gauged.

WardenHearing for this application was adjourned to a later date which will be fixed by the Registrar of Mineral Tenements and the Chief Mining Warden.

The next post will be the procedures of Mining Warden Hearing Process. Stay in tune

News Paper Article opposing the exploration application.

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Landowner Compensation in Mining Industry of Papua New Guinea

Landowner compensation is any sum of money paid by an exploration or mining company based on the value of disturbances caused by the company during exploration or mining.

Landholders of any exploration or mining activity are entitled to receive compensation payment depending on the value of disturbance to the environment. The Exploration company or the mining operator is liable to pay compensation under the  Mining Act 1992 (S.154) for Papua New Guinea.

During the exploration phase, there are no agreements signed between landholders and the explorer prior to exploration. Only mutual agreements are made prior  to actual exploration and compensation is paid according to Valuer General's Latest Schedule. The Latets Valuer General's Schedule is the 2013 version. Other rates for the extractive industry can be access at the PNG Chamber of Mines and Petroleum office.

Prior to entry and occupation and development of a Mining or ancillary operation to mining, a Compensation Agreement is a requirement for the developer and the landholders whom they will be affected by the mining operation or its related operation(s). Once agreements are signed and registered, it becomes legal document that will guide the operation in the intended aspect.

Compensation payment can be one-off payment or periodic payment depending on the agreement. In exploration, they are one-off payment of compensation in which one cannot claim compensation on the same area which was already compensated.

Compensation Agreement in the Mining Lease or Special Mining Lease and related leases and easements is a requirement. Once it is registered for execution, it becomes a legal document and it guides the operation.

Typical Disturbance of Natural Topography

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Landowner Grievances in Mining Industry of Papua New Guinea (PNG)

Landowner Grievances is any form of complaints or request raise by landowning clans/tribes/families to the exploration or mining developer. Grievances can be addressed to government or developer/company for consideration and action.

The threat to the Mining Industry of PNG is the Landowner Grievances during the Exploration phase throughout the stages of mine i.e. to advanced stages to development stage to production to shipment.

Chief Mining Warden of Mineral Resources Authority Conducting
Mining Warden Hearing for Special Mining Lease 9 (SML 9) for Frieda River
 at Ok Isai  Village in Sandaun Province

If an exploration company is given an Exploration Licence to explore within 2 years with a possibility to renew every 2 years, the license authorize the holder the exclusive rights to enter and occupy the marked out area for the purpose of exploration.

In the process of exploration some of the natural environment is disturbed and the holder is liable to pay compensation under Section 154 of the Mining Act 1992. The holder shall compensate according to the latest Valuer General's Schedule (Rate). The current one is the 2013 Valuer General Schedule 2013. During the exploration the license holder record any natural landscape before actual disturbance is done.

Sometimes, the landowners misunderstand exploration from mining and they demand the exploration company to pay them compensation at a dreamed figures that do not actually reflect the disturbances caused during the exploration. This is a common practice for almost all landowners.

Once the exploration phase is advanced to a stage where resource information is discovered and reported under JORC Code 2012 or any other reporting standards in the world, landowners get excited and put more pressure on the license holder in terms of handling landowner grievances.

There are two types of landowners, the legitimate landowners and paper landowners. Legitimate landowners are those who can be identified on the ground at the project area whereas paper landowners are those who claim to be landowners who usually have easy access to the mining company's/companies' offices and the mining regulators' offices.

Landowners at Ok Isai Village gave their views during the Mining
Warden Hearing of SML 9 - Frieda River Mining Project

To cater for and take into consideration such grievances, the Mining Act makes allowances for the landowners to express their views/grievances to the company and the regulators during Mining Wardens Hearing and Development Forums. These are avenues where landowner views/grievances are gauged and addressed through appropriate communication channels.

However, when landowner issues are not addressed properly, conflict arises the developer and sometimes its operations are forced to shutdown due to tension between developer and landowners. In such cases, the regulators and the company quickly resolve through community relations office of the developer.

Handling landowner grievances is always a challenge for the PNG Mining Industry.

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Mining and Natural Environment

Mining is one of the old human activities just like agriculture, fishery, forestry, manufacturing etc. Human lives are supported by obtaining and utilizing mineral resources from the earth's crust.

The Distinctive Features of Mines and Mining include but not limited to the following:

• Non-renewable assets - Mining Industry is based on non-reproducible and depleting assets. 
• Location  - Mining takes places where the ore body is reachable at economic value.
• Environment Impacts - Mining may disturb and contaminate the surrounding environments.
• Local Community Relations - Usually mines are located in the remote areas, thus close relationship with local communities is strongly encouraged.
• Working Condition - Occupational Health and Safety are the first priorities of mining.
• High Risk and Vulnerability - Mining Projects are susceptible to a variety of risks.
• Long Leading Time - Engineering works and permission to open a new mine need a longer term.
• Required Engineering Ability - Stable and successful mining is likely dependent on a combination of widely used practical technologies.
• Capital Advantage - Intense capital is required for continuous prospect or explore new deposits and endure risky business.

Out of the distinctive features of mines and mining, one of the most critical agenda around the globe is the Environment Impacts related to mining.

Environment Impact in mining is unavoidable but can be controlled to minimize the aftermaths. Mining is a backbone of a country's economic growth. In Papua New Guinea(PNG), the country's economy is mostly dependent on the extractive Industry which include Mining and Petroleum.

Some people in PNG speak negative about mining and encourage the protection of the natural environment. It should be understood that, before gardening, it must be cultivation of the land for farming. Then sacrifice the vegetation to farm the land. Similarly, the forest and the surrounding environment is sacrificed to mine out what is on/beneath the earth's crust including ocean floor.

There are legislations, prevention and treatment techniques available to safeguard and protect the environment from the waste generated from the mines.

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