PNG cabinet divided over mine closure
Published by MAC on 2006-05-29
PNG cabinet divided over mine closure
29th May 2006
The National, Papua New Guinea
By FREDDY GIGMAI
CABINET is still "much divided" over whether to close the Ok Tedi mine or not over the environmental concerns continuously raised by stakeholders, acting Prime Minister Sir Moi Avei said last week.
Sir Moi made this known after stakeholders in Kiunga, Western province, raised concerns on the seriousness of the acid rock drainage (ARD) problem highlighting that it was becoming a big concern particularly for those living along the Fly River.
Ward one councillor of the Kiunga Urban Local Level Government Elizabeth Matit asked Sir Moi during a stakeholder meeting with PNGSDPL board and executives to explain why the national government was "allowing OTML to operate outside the PNG environmental laws".
Sir Moi said the government was aware of the situation and had earlier assigned treasurer Bart Philemon and former national planning minister Arthur Somare to discuss with OTML management practical ways they are taking to address the issue.
But any decisions to close down the mine will not be an easy one as Sir Moi told stakeholders that the mine was the single biggest contributor to the PNG and Western province economy with a 25% revenue contribution annually. Last year, the mine raised a total of US$1.08 billion (K3.3 billion) in export sales revenue.
However, he said all their concerns had been noted and he will take it up to cabinet to address the issue and look at ways some of the concerns raised in cooperation and consultation with the OTML management.
Jim Carlton, a board member of PNGSDPL, the company that now owns 52% of OTML said the company was now "engaged in very serious consultations with relevant stakeholders on the continuation of the mine" and along with the PNG Government expects OTML to find a way to continue operating the mine "but with proper environmental care".
Meanwhile, OMTL managing director Keith Faulkner said last Tuesday the company was seriously engaged in addressing "environmental stressors" like sedimentation and ARD.
Mr Faulkner said they were beginning to see the build up of 10-15 years of mining waste such as the oxidation of sulphur and potential release of metals into the Fly River.