Papua New Guinea Landowners Warn China-Funded Nickel Project

Text of report by Papua New Guinea newspaper The National website on 2 June

[by Jason Som Kaut]

A review of the multi-billion kina Ramu nickel mine has been deferred for another month. Mining Minister and acting Prime Minister Dr Puka Temu, in Madang last Friday [23 May], has deferred the mining review to accommodate growing dissatisfaction by landowners and the provincial government.

The review started last Monday but was disrupted when Kurumbukari landowners pulled out on Tuesday at the Madang Resort Hotel.

At the provincial government headquarters at Yomba, the provincial executive council [cabinet] resolved not to cooperate with the developer until environmental concerns were addressed. Among other concerns, the landowners were demanding more spin-off benefits while the provincial government was insisting that an independent environmental assessment be carried out.

The landowners have vowed to shut down the mine if the issues are not addressed.

Kurumbukari landowner chairman Tony Bare said: “We now agree to suspend the review for four weeks, but we demand ongoing discussions and want to be involved more or we will stop the mine.”

He said most spin-off activities in the construction phase were being carried out by Chinese companies sending most of the money go back to China.

Dr Temu and Madang Governor Sir Arnold Amet assured agitated landowners that they would vigorously head the negotiations with developer MCC of China to iron out the differences and get more spin- offs for landowner companies.

Some landowner groups have expressed dissatisfaction at not been given ample opportunity to raise their concerns and have said they will shut down their section of the pipeline.

The landowners presented a list of three concerns to Dr Temu on Friday morning after he flew in late on Thursday afternoon from the national executive council meeting in Manus. Their demand for the operations to stop was rejected by Dr Temu.

“We cannot cease operations. This will send a wrong signal to the international community. Delay in the project timeframe will see costs escalate,” Dr Temu said. He also relayed the government’s opposition to close the mine.

Defiant landowners refused to budge for three hours, finally giving in to pleas by Dr Temu and Sir Arnold.

Originally published by The National website, Port Moresby, in English 2 Jun 08.

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