CHINESE MINING COMPANY STARTS WITHOUT PNG CLEARANCE

PACIFIC ISLANDS REPORT

Pacific Islands Development Program/East-West Center
With Support From Center for Pacific Islands Studies/University of Hawai‘i

CHINESE MINING COMPANY STARTS WITHOUT PNG CLEARANCE

PORT MORESBY, Papua New Guinea (PNG Post-Courier, Feb. 8) - The developer of the Ramu nickel-cobalt mine in Papua New Guinea has not finalized a mine development plan or even a pre-construction plan, and it cannot construct anything, Mining Minister Sam Akoitai said yesterday.

Mr. Akoitai, responding to queries by the Post-Courier said: "The current developer/operator (MCC) is yet to finalize and submit a revised feasibility study report together with revised proposal for development, which will include the mine development plans to the Department of Mining to review and eventually approve."

[PIR Editor’s Note: According to PIR news files, China’s Metallurgical Construction Corp (MCC) signed an agreement with [the PNG government], joint venture partners Highlands Pacific Ltd, Mineral Resources Madang Ltd and the Mineral Resources Development Corp. in August 2006 giving MCC and the joint venture partners the right to develop and mine nickel deposits in Ramu. The deal granted MCC a 10-year tax holiday as incentive to kick-start the project, as well as import duty and excise tax exemptions on its various imports.]

"This approval will require technical clearance on safety issues from the Chief Inspector of Mines under the Mining safety Act," he said. Separately, Opposition Leader Peter O’Neil urged the Government to ensure MCC strictly adhered to labor standards. Akoitai told the Post-Courier that the Department was waiting for these plans and or reports to be submitted by MCC.

A senior officer from the department said the developer is assuming that the Department will endorse the feasibility study report, the mining development plan and others.

Refusing to be identified, the officer said: "You cannot go into an area without a feasibility study."

Meanwhile, both MCC and the project contractor, ENFI, said on Tuesday evening that poor and inhuman conditions highlighted by the Secretary for Labor and Industrial Relations David Tibu were because the operations are at the preliminary stages.

[PIR Editor’s Note: According to its website, China Enfi Engineering Corporation (ENFI) is an international engineering company established by China Nonferrous Engineering and Research Institute. Established in 1953, China Nonferrous Engineering and Research Institute is a professional design institute aimed for recovery and development of Chinese nonferrous metal industry just after the foundation of People’s Republic of China. Now, ENFI is a wholly-owned subsidiary of China Metallurgical Group Corp.]

They said it was in the best interest of their government, their company and that of the standards set by Papua New Guinea that the mine will be built to the standards set by Papua New Guinea guided by the laws.

The construction manager of ENFI PNG Ltd., Hu Zhi Liang, said his company went through the recommendations and directives by Mr. Tibu and was committed to have them implemented.

Mr. Hu said they are committed and welcome the recommendations adding: "We cannot afford to make this project a failure for both China and PNG."

Meanwhile, Raymond Lez of MCC said his company welcomes any criticisms and that will guide them to follow the rules of law.

Mr. Lez said there are certain areas that need improvement and his company will ensure that they are improved.

When asked if it was standard practice for Chinese to squat side-by-side without any walls for toilet purposes, both Lez and Hu said this was only temporary because it was the preliminary stages of the construction phase.

They said they won’t compromise on the quality of operations, construction, living and other [aspects of the project]. They also gave the reasons of preliminary stages for the other conditions highlighted by Tibu and reported by this paper.

Meanwhile, Tibu maintains that workers could not be treated differently at different stages of the mine. He raised the alarm that workers were working and living under inhuman conditions and directed that they be addressed by the company immediately.

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