The Asia Miner

JUN 2018

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Papua New Guinea Vietnam the asia miner • volume 15 • issue 2 30 EMERGING SE ASIA: Papua New Guinea The Mineral Resources Authority of Papua New Guinea (PNG) has given approval for Crater Gold Mining to recommence operaƟons on its flagship Crater Mountain project. Following many months of work by the new in-country management team, headed up by Country Manager CurƟs Church, a new mine plan has been approved by the Chief Inspector of Mines. Two inspecƟons of the site, the associated faciliƟes and mining equipment have been carried out by the Mines Safety Branch inspecƟon team. A schedule of on-going improvements has been agreed with the Inspectorate and operaƟons have resumed condiƟonal upon the Company meeƟng a number of requirements. The Company has agreed with all the requirements and is confident of meeƟng them in the required Ɵmeframes. Crater Gold Managing Director Russ Parker said, "We have been working hard to overcome obstacles of the past and we now look forward to driving this project along the right road and generaƟng income from mining operaƟons as soon as possible. Work has already resumed on the development of the 1930 level adit and mining has kicked off in the 1960 level. In addiƟon, a drilling programme will be implemented forthwith." The project is located approximately 50km southwest of Goroka, the regional centre for the Eastern Highlands Province, PNG. It comprises three conƟguous exploraƟon licences, straddling the border between the Chimbu and Eastern Highland Provinces. This region is in the centre of the New Guinea Orogen, an extensive geological zone that makes up the mountainous spine of Papua New Guinea. The western porƟon of this zone encompasses the world class mining operaƟons of Porgera, OK Tedi, Wafi-Golpu and Grasberg. A JORC compliant inferred resource of 24Mt at 1.0 g/t Au using a 0.5 g/t Au cut-off for 790,000 ounces has been defined in the Main Zone; this includes 9.4Mt at 1.46 g/t using a 1.0 g/t Au cut-off for 440,000 ozs. The Ditch Ocean Dumping coaliƟon has called on CiƟgroup to divest from mines Ɵed to the pracƟce of ocean waste dumping. The internaƟonal coaliƟon of environmental and human rights groups – including among others Earthworks, Friends of the Earth Norway, Bismarck Ramu Group and MiningWatch Canada – has announced the start of a new campaign to end the submarine disposal of tailings, which is believed to smoother seabed floors and coral reefs, threaten fisheries and harm human and wildlife health. According to the coaliƟon, mining companies are suspected of dumping 220 million tonnes of mine waste directly into the oceans, rivers and lakes every year. The Ditch Ocean Dumping campaign is calling on CiƟgroup and other financial insƟtuƟons to divest from any project or company that employs the pracƟce. "Ocean dumping is dirty, unnecessary and wrong," said Ellen Moore of Earthworks, who is coordinaƟng the campaign. "Yet some companies sƟll use it, some governments sƟll allow it, and some of the world's largest banks and investment firms sƟll profit from it. It's high Ɵme we ditched ocean dumping once and for all." Due to the pracƟce, commercial and subsistence fishermen have seen fisheries decline. The Ditch Ocean Dumping campaign recognises that for many indigenous communiƟes water is the heart of their cultural heritage and spiritual pracƟce. In Norway, two proposed mines escaped a recent moratorium on submarine dumping permits, jeopardizing the fish-rich Repparłord and Førdełord, as well as the tradiƟonal lifestyle of the indigenous Saami people. "We oppose the Nussir mine because it threatens our way of life," said Silje Karine Muotka, member of the Governing Council of the Saami Parliament of Norway. "Reindeer herding and sea fishing is the cultural base of our community and must be allowed to conƟnue. It is essenƟal for future generaƟons." While the outdated pracƟce has been phased out in many parts of the world, advocates worry the Norwegian projects, along with new mines in Papua New Guinea, signal ocean dumping is being ramped up, not phased out. The campaign has singled out CiƟgroup for its Ɵes to the mines in both countries. Despite fierce local opposiƟon and a legal baƩle that suspended operaƟons for 19 months, the Ramu nickel and copper mine in Papua New Guinea is currently dumping around 14,000 tonnes of toxic mine waste into Basamuk Bay every day. "Coastal fishermen living near the Ramu mine have seen an increase in fish kills," said John Chitoa, director of the Bismarck Ramu Group. "Polluted waters undermine tradiƟonal livelihoods and mean less food for families who depend on a healthy Basamuk Bay." Mine waste can contain up to three dozen dangerous chemicals, including arsenic, lead, mercury, and cyanide. These metals accumulate in fish and, ulƟmately, the wildlife and people that eat them. New campaign seeks end to ocean mine waste dumping View of the Crater Mountain OperaƟon Gold mining resumes at Crater Mountain HGZ

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