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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Environmental Engineering Questions and Answers

1.       Define environment (in terms of mining).

Environment is Conditions that affect working atmosphere and development of mining. Or is the physical condition that exists in mines.

2.       What is mining?

It is the extraction of minerals from the earth.

3.       Why does environment become a subject to mining?

Because serious mine closure issues remain after mine is closed so by taking environment as a subject to mining, the mine closure issues can be addressed and must be known to the local people of what is going on and what preventive measures that can be taken to protect people and the natural environment.

4.       What are main sources of physical impacts by mining operations?

They are: exploration, development and extraction.

5.       What are main sources of chemical pollution due to mining?

Main sources of chemical pollution are cyanide and sulfuric acid for (leaching) and organic reagents (flotation agents) from ore separation processes. Others include mercury, toxic blast chemicals and hydrocarbon products run – off.

6.       What particular problem exists with both ferrous and precious metallic ores?

Acid mine drainage is a particular problem in many mines and both ferrous and precious metallic ores are the main sources of ARD.

7.       What is the main concern of trace metal concentrations?

The main concern of trace metal concentration is that, when they are leached into the river systems and streams it cause bioaccumulation which is a concern to the river systems.

8.       State the magnitude of mineral’s contributions to economic growth in developed and developing nations.

High proportions of minerals are mined in developing countries and so the economy of poor countries depends largely on minerals whereas minerals contribute a small portion to the economy of developed countries like USA, Japan and Great Britain.

9.       What are the effects of increased demand for minerals?

The demand for minerals increased as there was an increased in technology, development and human civilization. As a result, environmental impacts of earth based resource extraction increases.

10.   Why is every mine different and related environmental effects?

Because every mine has different characteristics with respect to environment. These characteristics include;

      Amount of materials removed.

      Deposit depth.

      Ore chemical composition

      Ore process technology/techniques

      Degree of stewardship practiced.

11.   Describe very briefly how mineral is extracted by surface mining methods and underground methods.

In surface mining method, the mineral is extracted by removing the overburden, drilled, blasted, loaded and hauled to the processing plant.

In underground mining methods, mineral deposits are extracted at certain depths. Ore is drilled and blasted stopes, marked and hauled to the surface via hoisting systems or diesel units.

12.   What aspect of operation distinguish surface from underground mining?

Underground mine operations are complex compared to surface operations. Surface mining is easy and cheap to operate because the ore deposit is near surface whereas underground mining is hard and expensive to operate because mineral deposit is at certain depth.

13.   State the natures of environmental impacts caused by mill operation, underground and surface mining respectively.

Riverine Tailings from mill operation is dangerous as most mineral deposits are associated with sulfur. In addition, smelting generate large amount of toxic gas. Smelters cause regional pollutions where SO2 can travel considerable distances and cause “acid rain” and climate change.

Potential sources of water pollution include drainage from surface and underground mines, waste water from beneficiation, and contaminated surface water from toxic blast chemicals and hydrocarbon products run – off.

14.   Why is chemical pollution more serious than physical?

Because chemical means are hard to reverse and these must be controlled at process stage. But environmental impacts through physical impacts can be reclaimed through rehabilitation during mining and post – mine period.

15.   Differentiate tailings and waste rock and describe respectively environmental impacts.

Tailings compose mostly of mud and slurry containing high proportion of fine particles. Mud and slurry tailings once exposed to air and rain cause oxidation, releasing sulfuric acid, causing acid rock drainage. The suspended solids cause river bed sedimentation, diversion of watercourses, flooding and destruction of aquatic life.

Waste rock is solid coarse materials from both surface and underground mines. Waste rock dump occupy large portions of land, often outside the special mining lease under lease for mining Purposes.

16.   If Frieda Copper mine is predicted to produce 1million/year ore at 0.45%Cu, what is the annual waste material generated?

Data: production = 1,000,000 tonness/year

       grade = 0.45%

Annual waste generated =????

Copper concentrate = production x grade = 1,000,000 x 0.0045 = 4500 tonnes copper.

Annual wastes = 1,000,000 – 4,500 = 995,500 tonnes of waste.

17.   If Hidden Valley mine has minable ore of 5minllion tones grading 2.5g/t Au, for mine life of 10 years, the tailings dam should be designed to what capacity?

Data: mineable ore = 5 million

Ore grade = 2.5g/t     mine life = 10 years.

 /year x 2.5g/t = 12,500,000 grams/year.

Total value mineral = 10 years x 12,500,000 gram/year = 125,000,000 grams

 In terms of tonnes = 125 tonnes.

Waste and value minerals = 5,000,000 tonnes /year x 10 years = 50,000,000 tonnes of ore.

Therefore; total waste generated would be = 50,000,000 tonnes – 125 tonnes = 49,999,875 tonnes.

So the tailings dam should be designed in such a way that will cater for 49,999,875 tonnes of waste over the ten year period. If tonnage factor was given then the answer would be expressed in volume.

18.   What is beneficiation? Describe it?

Is the entire process of crushing, grinding, sizing and separation of ore into valuable mineral and waste

In other words it is the process that liberates mineral grains locked in rock/ore which can be separated physically and chemically.

19.   State the two types of mineral separation and examples of each.

Two basic means of separation are physical and chemical.

·         Physical separation involves; - (a) magnetic and (b) gravity separation.

·         Chemical separation methods are: (a) floatation (b) cyanidation (c) amalgamation and (d) heap leaching.

20.   Briefly describe the processes: (a) heap leaching (b) cyanidation & (c) amalgamation.

      Heap leaching – is a process used to extract metal values from run – of – mine ore. The ore is usually porous and readily soluble in aqueous solvent.

      Cyanidation – is a process for extracting gold or silver from ore by treating the ore with a weak solution of sodium cyanide and recovering the metal particles from the resulting solution.

         Amalgamation – is a method of extracting a precious metal from an ore by using mercury to form an amalgam (an alloy of mercury and another metal) with the metal.

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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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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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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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