Kandep My HOME

Polye’s win set aside

2016-05-05T18:04:00.000+10:00

Source:The National, Tuesday May 3rd, 2016

By DEMAS TIEN

THE National Court has set aside Kandep MP Don Polye’s victory during the 2012 general election ‒ pending the counting of votes in five ballot boxes initially rejected.

Justice Joseph Yagi in a ruling yesterday gave 30 days to the Electoral Commission to have the five ballot boxes counted.

Luke Alfred Manase, who was the runner-up in 2012 to Polye, the current Opposition Leader, in the Kandep Open seat, had sought four orders from the court including the recounting of votes in the five boxes.

Three were earlier in favour of Polye.

Yagi ordered yesterday that the candidate scoring the absolute majority after the counting of votes in the five boxes would be declared the Kandep MP.

The five boxes rejected were from the polling stations at Lungutenges No 1, Kombros No 1, Kambia No 1, Maru and Imipiaka in Kandep.

Manase named Polye as the first respondent and the Electoral Commission as the second.

He disputed the election of Polye, questioning the conduct of election officials during the counting of votes.

The substance of the complaint by Manase in the petition was related to allegations of errors and omissions by the officers, servants and agents of the Electoral Commission.

The court was satisfied with one of the grounds raised by Manase in his petition relating to the five boxes which were rejected. The votes in the five boxes were not scrutinised and counted. The other three grounds were dismissed because the court was not satisfied that the allegations stated in the grounds had been sufficiently proven.

Meanwhile, Polye said yesterday in response to the court ruling that he was the victim of an error made by the returning officer for the Kandep Open seat.

Polye said he had won the seat by a big margin but this had been set aside because of an error by the Electoral Commission and its agents.

“I am just a victim of an error by the Returning Officer,” Polye said.

Court-order-costly

Poll-officials-to-face-probe

Polyes-vote-sums-dont-add

Court order costly

2016-05-05T17:52:00.000+10:00

Source: The National, Wednesday May 4th, 2016

By MALUM NALU

ELECTORAL Commissioner Patilias Gamato says it will cost about K850,000 to count the five disputed ballot boxes for the Kandep Open seat in Enga, as ordered by the National Court on Monday.

He said the five boxes contained 3248 ballot papers were from the Lungutenges No 1 (479), Kombros No 1 (635), Kambia No 1 (520), Maru (772) and Imipiaka (842) polling stations. They were excluded by election officials from the counting process during the 2012 general election.

Don Polye won the seat with 23,952 votes. Luke Alfred Manase, the petitioner, was second with 11,418 votes.

Gamato told The National last night that Polye was no longer the Kandep MP. A new declaration of the winner will be made after the counting of the five boxes.

Gamato said the K850,000 was the figure reached following a consultation with his management team, “in case the five boxes changed the absolute majority and we go into the elimination process”.

“It means we have to count all eliminations until we find the winner. Once we start counting the five boxes, we cannot stop and go back to ask the Government to give us (more) money,” he said.

“They have to make money available at the first instance so when we start, we flow. We may not use the full K850,000.”

He said figure included costs for the petitioner as ordered by court, plus the lawyer representing the commission.

Justice Joseph Yagi ordered on Monday to have the five boxes counted, as one of the four orders sought by Manase in the petition. Three were ruled in favour of Polye.

Gamato said the five boxes would be brought from Wabag and the counting done at the commission headquarters in Waigani within the 30 days as ordered by the court.

Gamato will write to Chief Secretary Isaac Lupari and Finance Secretary Dr Ken Ngangan to secure the funding.

In 2012, Polye was declared winner of the Kandep seat on primary votes because the total votes he polled after the last count reached the absolute majority required under the LPV system.

The total allowable ballot papers was 47,713 and the absolute majority was 23,858.

Meanwhile, he said the commission had only received K600,000 out of the K2.5 million allocated for the Samarai-Murua by-election in Milne Bay.

Polyes-vote-sums-dont-add

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Poll officials to face probe

2016-05-05T17:46:00.000+10:00

Source: The National, Thursday May 5th, 2016

By MALUM NALU

THE election manager and returning officer for the Kandep Open seat in Enga during the 2012 general election will be referred to police to be investigated over alleged corruption, an official says.

Electoral Commissioner Patilias Gamato told The National that he wrote to Police Commissioner Gari Baki yesterday to have election manager Henry Kyakas and returning officer Naepet Keae investigated.

Kyakas is employed by the commission while Keae is employed by the Enga provincial administration.

The National Court on Monday set aside Kandep MP Don Polye’s victory during the 2012 general election pending the counting of five ballot boxes which were initially rejected by election officials. The five boxes rejected were from the polling stations at Lungutenges No. 1, Kombros No. 1, Kambia No. 1, Maru and Imipiaka in Kandep.

The substance of the complaint by petitioner Luke Alfred Manase was related to allegations of errors and omissions by the officers, servants and agents of the Electoral Commission.

Gamato said the electoral processes were not followed in the Kandep election.

He said it was important that election managers and returning officers avoid corrupt practices during the election process.

Gamato said the court on Monday concluded that there was a lot of “foul play” involved.

“What the judgement and the court order said was that there was a lot of foul play,” he said.

“The evidence the petitioner (Manase) and his supporters gave was strong and based on that the judge made a ruling. We at the Electoral Commission must be strong in upholding the Constitution and the laws that govern elections.”

Polye won the seat with 23,952 votes.

Polye's Vote Sums Don't Add- June 2012

Ruling on governor’s seat deferred

2016-05-05T17:32:00.000+10:00

Source: The National, Thursday May 5th, 2016

A NATIONAL Court has deferred the decision regarding the dispute over the position of Hela governor between Anderson Agiru and Komo-Margarima MP Francis Potape.
Justice Ere Kariko instructed the court registry yesterday to defer the decision, which was supposed to be handed down yesterday, because of the death of Agiru last Thursday.
Kariko’s associate Alesana Babona told The National that the decision was postponed because of the death.
Agiru’s lawyer Goiye Gileng, from Posman Kua Aisi Lawyers, said that the court was expected to hand down the decision after the mourning period. He said there was no specific date set.
Lawyers representing Agiru and Potape and the eight members of the provincial assembly had made their submissions on March 31.
Meanwhile, Electoral Commissioner Patilias Gamato said a date for a possible by-election for the Hela Governor’s seat would be considered after a month in respect of Agiru.
He said yesterday that as a mark of respect for Agiru, who became governor of the new Hela province in 2012, a one-month period would be allowed.
“I would like to wait until the mourning is formally ended before I make a statement,” Gamato said.

Basil takes over as Opposition leader

2016-05-04T17:55:00.000+10:00

Source: The National, Thursday May 5th, 2016

By CLIFFORD FAIPARIK

PANGU Party leader Sam Basil is the new Opposition leader.

He takes over from Triumph Heritage Party leader Don Polye after the National Court suspended Polye as the Kandep MP over uncounted votes in five ballot boxes in the 2012 general elections.

Polye, in handing over the position to his deputy and Bulolo MP Basil yesterday, said he stepped down from Parliament by respecting the law.

“Although I disagree with the court ruling, we need to set an example to our people – and to the Prime Minister Peter O’Neill and Police Commissioner Gari Baki about respect for the law.

“So, I therefore accept my 30 days suspension from Parliament. I wish, for the sake of our country, PNG, and its people, that O’Neill would similarly subject himself to the decision of courts and a Leadership Tribunal in order to prove his innocence or the courts to prove his guilt.”

Basil said that he would lead 11 Opposition MPs to provide an effective Opposition against the Government on issues that the Opposition believed were not best for PNG. “I also call on other MPs implicated in cases before the courts, and some of them are still operating as MPs under court orders and not respecting the courts,” Basil said.

“I believe that what Polye has done today, we must see as an example to follow, particular O’Neill and his government and his ministers.

“They are not following the law and not respecting court orders,” he said.

“They are also using the courts to prolong their stay.”

2015 Godzilla EL Nino maybe worse - NASA

2015-08-15T12:57:00.000+10:00

THEY are calling it the Godzilla.

An El Nino weather pattern so destructive that it will surpass all previous El Ninos.

And while there is still some debate as to how fierce this event will be, there is one thing experts are sure of — it’s already happening.

Since March scientists and meteorologists have been monitoring sea surface temperatures in the central and eastern Pacific Ocean and in May, agreed the world was in the midst of an El Niño.

But this declaration was a little earlier than usual, (El Ninos normally occur between June and November) prompting Australian authorities to predict back then that this would be an intense event.

A few months on, NASA is now saying the 2015 El Niño has the potential to be the most powerful on record.

And the space agency’s climatologists are claiming the disruptive weather pattern will cause so much rain that it will end the severe drought in California.

“This definitely has the potential of being the Godzilla El Niño,” Bill Patzert, a climatologist with NASA’s Jet Propulsion Laboratory in La Cañada Flintridge told The LA Times.

“Everything now is going to the right way for El Niño. If this lives up to its potential, this thing can bring a lot of floods, mudslides and mayhem.”

According to experts, this year’s event is already on track to be stronger than the El Niño from 1997 which brought heavy rainfall to Southern California during its winter and twice as much snow in the Sierra Nevada.

But it also caused widespread flooding in the region.

In early 1998, the heavy rainfall not only led to flooding but deadly mudslides.

17 people died and more than half a billion dollars worth of damage was caused. Downtown LA received almost a year’s worth of rain in a month, The LA Times reported.

A still of NASA data showing the weather patterns indicating El Niño for 1997. Source: Supplied

A still of NASA data showing the weather patterns indicating El Niño for 2015. Source: Supplied

So what is an El Niño?

It’s a warming of sea surface temperatures in the eastern and central Pacific Ocean that disrupts weather patterns across the Pacific and can cause a corresponding cooling of the ocean in the western Pacific and around Northern Australia

Every few years, the winds shift and the water in the Pacific Ocean gets warmer than usual.

The resulting El Niño changes weather worldwide, mostly affecting the US.

But it can also affect Australia.

Australia experienced one of its worst droughts during a weak El Niño in 2006—07, but the strongest event, the El Niño in 1997—98, only had a modest impact on Australian rainfall.

The last El Niño, five years ago, also triggered monsoons in Southeast Asia, droughts in the Philippines and Ecuador, blizzards in the US, heatwaves in Brazil and killer floods in Mexico.

This current pattern is now being blamed for drought conditions in parts of the Philippines, Indonesia and Australia, just like in 1997-98.

The dry banks of La Plata River in Naranjito in central Puerto Rico which is in severe drought. Experts are predicting this year’s El Niño event could cause more widespread drought in Australia. Source: AP

Will the big one hit?

For this year’s El Niño to truly rival its 1997 counterpart, there still needs to be “a major collapse in trade winds from August to November as we saw in 1997,” Mr Patzert said.

“We’re waiting for the big trade wind collapse. If it does, it could be stronger than 1997. There’s always a possibility these trade winds could surprise us and come back.”

However he also concedes it also might not happen.

Mike Halpert, deputy director of the National Oceanic Atmospheric Administration’s Climate Prediction Centre, said a big El Niño “guarantees nothing”.

“At this point there’s no cause for rejoicing that El Niño is here to save the day,” he added.

California’s state climatologist Michael Anderson told AAP that only half the time when there have been big El Ninos has there been meaningfully heavy rains.

Mr Halpert said California would need three time its normal rainfall to balance out the drought, which he believed was unlikely.

Despite that he also believes this El Niño was on track to be a record-setter because of incredible warmth in the key part of the Pacific in the last three months.

He said the current El Niño is likely to rival those from 1997-1998, 1982-83 and 1972-73 and the NOAA, on a blog, has labelled it the “Bruce Lee” of El Ninos.

NASA believes it will be more powerful than previous events according to its satellite measurements.

And Mr Patzert believes because it is likely to cause mudslides and other mayhem, using Godzilla to describe it was more appropriate.

When will it hit?

According to the experts, they are predicting the El Niño to peak in the late fall (Australian spring) or early winter (Australian summer).

NASA oceanographer Bill Patzert speaks about an El Nino weather system that could strike California. Source: AP

Frost is worst in district, LLG president says

2015-08-15T10:03:00.000+10:00

Source: The National,Friday August 14th, 2015

By PETER ESOP WARI
THE people of Mendi-Munihu district in Southern Highlands have been severely affected by frost following the long dry weather.
In an emergency meeting yesterday at Mendi town, four Local Level Government presidents led by Upper Mendi LLG president Solomon Timbol, submitted reports of the disaster saying it was the worst in the district.
Lai Valley LLG president Jack Soal, Karintz LLG’s Simon Tolpe, Mendi Urban’s Vincent Manda and Timbol are appealing to the National Disaster and Emergency Centre to help the people.
Vegetables, kaukau tubers, sugar cane, bananas and pandanas have withered. Creeks and rivers have dried up and people are also facing a water shortage.
Timbol said people were calling them from everywhere seeking assistance. “But we (LLG presidents) cannot do anything because we not have funds. It is up to the national, provincial and district disaster and emergency centres to help,” he said.
“It is a real disaster and hundreds of people would soon starve.”
Timbol said it was important that a team from the National Disaster and Emergency Centre visit the area to assess the situation.
Farmer Joe Pila from the Ialibu-Pangia district lost his entire food garden after frost hit the area on Monday night.
He lost 23 hectares of taro and sweet potato plots. He said earnings from his farm had helped him set up a small business including a trade store, kai bar and hire vehicles.
“I have 10 fulltime labourers and I pay them fortnightly,” he said.
“I have a piggery farm, poultry and breed fish apart from the garden crops.”

More health tips

2015-08-15T09:46:00.001+10:00

Source:The National, Thursday May 21st, 2015

Making these small changes to your daily life will significantly improve your well-being and put you on the road to better health.
Give up smoking
It is never too late to quit smoking, and there are many benefits to be gained no matter what your age is when you give up.
Using tobacco puts you on a collision course with cancer.
Even if you don’t use tobacco, exposure to secondhand smoke might increase your risk of lung cancer.
Tobacco smoke is made up of thousands of chemicals, and many of them are very harmful.
The poisons in tobacco smoke include:
Carbon monoxide: Fatal in large doses, this poisonous gas, is found in car exhaust fumes. It takes the place of oxygen in your blood, starving your lungs, heart, and other organs of the oxygen they need to function properly.
Tar: This sticky brown substance coats your lungs like soot in a chimney. Tar and smoke irritate your lungs, increasing the amount of mucus in your chest and restricting your breathing.

Long-term smokers are at a higher risk of developing a range of potentially deadly diseases including:
Cancer – Smoking can cause cancer of the lungs, mouth, nose, throat, oesophagus, pancreas, kidney, liver, bladder, bowel, ovary, cervix, bone marrow, and stomach;
Lung diseases – such as chronic obstructive pulmonary disease which includes chronic bronchitis and emphysema;
Heart disease – such as heart attack and stroke; and
Poor blood circulation - in feet and hands, which can lead to pain and, in severe cases, gangrene and amputation.
Quit smoking now and reduce your risk of serious and life-threatening disease.
Tip: If you need help quitting smoking ask your doctor about stop-smoking products and other strategies for quitting.

Reducing stress
Stress is a normal reaction to the ever-increasing demands of life. Unfortunately, long-term stress can cause many complications on your health. Everyone has stress at some point in life. However, if you are stressed often, it puts you at risk for heart disease, depression, and other problems.
Stress that continues without relief can lead to headaches, an upset stomach, high blood pressure, chest pain, problems with sleeping or sex, depression, panic attacks, or other forms of anxiety and worry.
Manage stress with these tips:

Ask yourself what you can do about the sources of your stress. Think through the pros and cons. Take action where you can;
keep a positive, realistic attitude. Accept that although you can’t control certain things, you’re in charge of how you respond;
stand up for yourself in a polite way. Share your feelings, opinions or beliefs, instead of becoming angry, defensive, or passive; and,
Don’t rely on alcohol, drugs, or food to help against stress.

Remember: If you feel your stress is not manageable or has continued for some time, talk to your doctor.

Get enough sleep
Healthy sleep habits can make a big difference in your quality of life. Sleep is vital for healthy physical, mental and emotional processing.
When we go without sleep or have insufficient sleep, our bodies struggle to perform to their full potential and, as a consequence, we can expect impairments to our next-day physical and mental performance.
Humans, like all animals, need sleep, food, water and oxygen to survive. For humans, sleep is a vital indicator of overall health and well-being.

How much sleep do I need?
Most adults need seven to eight hours of good quality sleep on a regular schedule each night.
Make changes to your routine if you can’t find enough time to sleep.
Important point: It is important that you go to sleep at around the same time every day.
Try to get good quality sleep so you feel rested when you wake up.
Tip: If you often have trouble sleeping – or if you don’t feel well rested after sleeping – talk to your doctor.

Don’t skip breakfast
Breakfast is the most important meal of the day, especially for weight loss seekers.
If you skip it, you’ll get hungry before lunchtime and will potentially start snacking on foods that are high in fat and sugar and low in vitamins.
Eating breakfast can positively impact your energy level, blood sugar level, weight and even your ability to focus and be productive.
After fasting all night, breakfast fuels your body, so you start the day with energy.
Skipping breakfast affect a person’s effectiveness at work or in school.
Studies have shown that:

Adults who skip breakfast are not as productive at work, are less effective problem-solvers and have less mental clarity compared to people who regularly eat a healthy breakfast; and,
Children who eat nutritional breakfast tend to have higher grades in school. They have better concentration, alertness, and more energy, and can retain knowledge faster and think more clearly than non-breakfast eaters.

Tip: While a good breakfast is vital, eating a heavy breakfast, one which is high in carbohydrates and fat, may actually do you more harm than good.

Stay connected
Just like a balanced diet and exercise, an active social life is an important part of healthy living.
Studies suggest that people who have good social networks may live longer and better.
It takes effort to stay connected when your life is busy. Sometimes it may feel like it’s just too hard to stay in touch.
But, having a few close, mutually supportive friends can be a key to staying healthy.
These relationships may help you feel supported, stay mentally sharp, reach your goals, develop a more active lifestyle, reduce stress, have better health outcomes, enhance your sense of well-being and happiness, lengthen your lifespan.

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Suspended

2015-08-15T09:40:00.000+10:00

Source: The National,Friday August 14th, 2015

By CHARLES MOI

THE National Court has suspended an eight-year jail term it imposed on former National Provident Fund chairman Jimmy Maladina on fraud charges, and placed him on a two-year good behaviour bond.
Deputy Chief Justice Sir Gibbs Salika convicted Maladina in May on one count of conspiracy to defraud the NPF (now Nasfund) of K2.65 million between November 1, 1998, and October 10, 2000, and one count of misappropriation of the superannuation funds between February 26, 1999 and July 30, 1999.
Sir Gibbs imposed a sentence of six years on the first count and eight years on the second count, to be served concurrently.
Sir Gibbs explained in his 28-page ruling that the suspension of the eight-year jail term was because Maladina had repaid more than the K2.65m taken.
He also took into account the long delay to have the matter tried, which denied Maladina’s “constitutional right to a trial within a reasonable time”.
“The State had a primary role to expedite his trial,” Sir Gibb said.
He also noted that Maladina “will no longer be able to practice law ever again”, and “will suffer in that he will have to find other ways to survive”.
Sir Gibbs said a pre-sentence report by current Nasfund chief executive officer Ian Tauritia stated that the organisation had since flourished from K1.24 million to K3.8 billion “making (Maladina’s court) case look stale and of little consequence”.
Maladina made full restitution on July 24 and had sold his assets in Australia worth AUD$500,000 which was paid to National Superannuation Fund (Nasfund).
Sir Gibbs also pointed out that others involved in the fraud were never charged.
“I think the prisoner (Maladina) has learnt a valuable lesson from this case, is not likely to re-offend and is not a danger to society,” Sir Gibbs said.
Maladina, 49, from Mena’ala village in Esa’ala, Milne Bay, elected to remain silent during the proceeding.
A lawyer by profession, he is married and has four children now living and studying in Australia.
The State accused Maladina of conspiring with others to defraud the fund of K2.65 million by fraudulently increasing the construction costs of the NPF tower in Port Moresby.
It also accused Maladina of dishonestly applying to his own use and to the use of others K2.65m belonging to the fund.
The court found that Maladina and others agreed that construction company Kumagai Gumi, contracted to build a tower, to falsely charge an extra K2.65 million as “further accelerated fees” on top of the agreed construction cost of the tower of K50 million.
Maladina used K400,000 of the K2.65 million, according to the court’s assessment of the evidence.
Sir Gibbs said: “The court must continue to send out a stern message to deter those in positions of trust from abusing and manipulating the systems to benefit themselves and their cronies.
“This case calls for a stern punitive and deterrent sentence to serve as a clear warning to trustees and board chairmen looking after superannuation funds that high standards of integrity and honesty are expected from and of them.”

PNG opposition says LNG money handled corruptly

2015-08-12T16:51:00.001+10:00

Updated at 5:31 pm today

The leader of the Papua New Guinea Opposition, Don Polye, has accused the Peter O'Neill Government of corruption over the way it handles LNG project money.

The huge liquified natural gas project is now the biggest earner in PNG and has been touted for several years as the economic saviour of the country.

Mr Polye says a huge UBS Bank loan by the Government to buy a slice of Oil Search was not done through Parliament as it should have been.

And he says the O'Neill Government is not channelling the earnings from the project through the public accounts, but through an entity it has created, called the National Petroleum Company PNG or NPCP.

"And funds are channelled there, repaying the loan, as well as being managed in a very untransparent manner, and that is the cry out by the people of this nation, especially by academia, the professional institutions and other bodies at present in Papua New Guinea."

Next story in Pacific: Tuvalu launches national youth policy

Tell like it is, Polye tells PM

2015-08-12T16:32:00.001+10:00

Polye said the Government had failed to listen to warnings by economic institutions and individuals, including him, when he called on the Government to do a early supplementary budget.

ment’s doing included:

Building semi-standard infrastructure in Port Moresby at excessive contract prices that boosted foreign businesses at the suffering of the local construction industry;
deliberately pegging the kina against the US and Australian dollars that led to contracting of the export industry;
failure to do micro-economic reforms, especially in the State-owned enterprises and financial sectors;
dismantling of the PNG Sustainable Development that has now led to the closure of the Ok Tedi Mine; and,
Loss of fiscal discipline by spending exorbitantly outside the budget. Polye said fiscal and cash flow problems had affected foreign reserves. He said O’Neill needed to come out clear on it’s plan on this

Konga sues paper over ‘selfie’

2015-08-12T16:26:00.000+10:00

Source:The National,Wednesday August 12th, 2015

THE executive chairman of the Border Development Authority has filed a defamation suit against The National, the National Executive Council, the State, a reporter and five persons, over a naked selfie which went viral on social media last month.

In his affidavit, Fred Konga claimed that on July 16, an unknown person uploaded on Facebook “an alleged indecent photograph which resembles myself”.

He said that on July 27, Gibson Kemo published an alleged indecent photograph resembling him (Konga) on Facebook and entitled it “Selfie of the year award”. He further said that on July 29:

Sonja Barry Ramoi published a photograph “purportedly of myself” on her Facebook page known as “PNG News” and entitled it “Naked selfie goes viral”;
Bonda Panda published another photograph allegedly resembling him in a post to PNG News;
Johnny Young published an indecent photograph allegedly of Konga sitting at an unknown location;
Darius August published a photo of Konga, his wife and daughter which “drew negative comments about my family and my career”;
Isabella Tauri published an alleged indecent photograph purportedly of him with the following comments – “Fred Konga denied the selfie and said it was photoshopped. See here the star of nudity holding a high PNG government office.”

Kemo, Ramoi, Young, August and Tauri have been named as first defendants.

Konga named Clifford Faiparik of The National as second defendant.

He argued that Faiparik did not consult him before writing his articles which referred to a “head of a government agency”.

The first article appeared on July 29. Three more articles appeared subsequently before Konga called a press conference on Aug 6 where he said that the photographs were “reconstructed” to hurt his character and the Border Development Authority.

In his affidavit, filed on Aug 8, Konga said he believed that the Executive Ministerial Appointment committee and the minister responsible for the Border Development Authority had recommended to Cabinet to suspend or terminate his employment over the matter.

He claimed he was never given any opportunity to defend himself. Konga’s counsel is seeking an interim restraining order against the six persons and The National from publishing “any alleged naked photographs taken by the plaintiff of himself”, any articles and comment in connection with the matter pending the court’s decision.

He wants the National Executive Council and the State, named fourth and fifth defendants, be restrained from making any decision on Konga’s position as executive chairman of the authority.

The motion is to be heard by the Waigani National Court on Friday.

2015 Pacific Games_Opening Ceremony in Pictures

2015-08-08T13:34:00.000+10:00

Government finances threatened as drought shuts Ok Tedi mine

2015-08-08T09:25:00.001+10:00

August 7, 2015 7:00 pm JST

Papua New Guinea

Government finances threatened as drought shuts Ok Tedi mine

MICHAEL FIELD, Contributing writer

Papua New Guinea's largest copper miner, Ok Tedi, has halted operations for the rest of the year due to a prolonged dry spell.

AUCKLAND, New Zealand -- A harsh dry season and plunging commodity prices have forced Papua New Guinea's biggest copper miner to suspend operations, adding to fears of an impending fiscal crisis for the government. State-owned Ok Tedi Mining produces 25% of the country's export revenue, 5.5% of its gross domestic product and about a quarter of government revenue. "There will be a direct hit on the national budget," mining commentator Martyn Namorong told the Nikkei Asian Review.

Compounding the potential impact of the shutdown, a $19 billion liquefied natural gas complex being constructed by ExxonMobil, the U.S. energy group, is not producing the cash flow Papua New Guinea had expected, because of low energy prices

In its Mid-Year Economic and Fiscal Outlook, released on Aug. 3, the government said its estimated budget deficit for 2015 had risen from 4.4% of GDP to 9.4%, which would be the highest in the country's history. Also, the level of public debt is forecast to rise sharply from an earlier estimate of 27.8% of GDP to 41.3%. Both forecasts are higher than comparable levels in the late 1990s, when the country suffered a severe economic crisis.

The government had already reduced its official forecast for GDP growth to 11.3% from 15% for 2015 to reflect lower global energy and commodity prices. However, the Asian Development Bank said in July, before news of the shutdown of Ok Tedi, that growth was likely to slow dramatically. "[The] consensus forecast sees growth further moderating in 2016 (to 5%)," the ADB said.

Ok Tedi announced in late July that it would close for the rest of the year as a "result of the dry weather event," a reference to the drought caused by El Nino -- an intermittent change in Pacific Ocean currents that can cause weather disruptions. The mine suffered the same fate for six months in 1997 (also an El Nino year) under its former Australian owner BHP, now BHP Billiton.

High in the normally rain-soaked Star Mountains, 15km east of the border with Indonesia that bisects the island of New Guinea, Ok Tedi depends on the 1,050km Fly River to move ore out and bring in supplies. Declining water levels in the river were "creating uncertainty with regard to cash inflows necessary to sustain operation," Ok Tedi said.

The company said there was a 20% chance that rainfall would return to normal within the next six months. But Namorong said Ok Tedi has insufficient credit to remain operating while unable to export its concentrate. "If it is not making cash, it cannot operate," he said.

The miner has begun cutting its workforce of 2,245 employees. Work being carried out by thousands of contractors has also been halted, and more than 2,000 children of employees have had to find new schooling. Small landowners and 50,000 people in 120 settlements along the Fly who receive compensation for mine pollution are also affected. Prime Minister Paul O'Neill said in January that a permanent closure would have "horrendous" economic consequences.

Ok Tedi's first-quarter results, published May 4, show that copper and gold production decreased 18% and 26%, respectively, on the year, while the price of copper fell 16% and gold 8%. Gross revenue fell 58% to 291 million kina ($105 million), and the mine posted a loss of 38 million kina, compared with a profit of 280 million kina a year earlier.

Namorong said the plunge in copper prices, which are at a nearly six-year low, has pushed Ok Tedi's revenues below the break-even point. At the end of July, the global market price of copper was $2.40 a pound. Namorong said the company needs a price of between $3 a pound and $3.50 a pound to be viable.

Always controversial Ok Tedi is Papua New Guinea's oldest operating mine and has always been controversial. In the 1980s, BHP attracted substantial international environmental criticism after mine tailings were found to be damaging the Fly River system.

In 2002, BHP Billiton abandoned the site after years of controversy. In return for indemnity against lawsuits for environmental damage, the company handed over its shares, now worth $1.4 billion, to a trust dedicated to local development.

Sean Dorney, an expert on Papua New Guinea at Australia's Lowy Institute for International Policy, a think tank, said the country's then-Prime Minister Mekere Morauta believed that BHP wanted to close the mine. "Ok Tedi kept operating and has been significantly profitable," Dorney said.

When he came to power in 2012, O'Neill claimed the trust was secretly controlled by BHP. The following year, Ok Tedi was nationalized. A legal battle is under way for control of the trust, which is registered in Singapore. In May, the International Center for the Settlement of Investment Disputes declined to hear the trust's claims against the government. A similar legal case is before the High Court of Singapore, which has yet to issue a judgment.

In March, the government appointed Peter Graham, the former head of ExxonMobil's PNG gas project, as Ok Tedi's chief executive, with a brief to refocus the mine on profitable operations in a world of lower-price commodities.

However, this has been stymied by the rainfall problem. "Even Peter Graham can't control the weather," said Dorney. "The O'Neill government has spent up big anticipating huge revenue flows from LNG, but that is not happening, so the Ok Tedi temporary closure is a real problem."

Mining dominates the economic life of Papua New Guinea's 7.3 million people. In July, Enga Province, home to the country's richest resource project, the Porgera gold mine, was declared a tribal fighting zone, affecting mining operations. Porgera is 95% owned by Barrack Gold of Canada, with the Papua New Guinea government owning the rest.

The Lihir gold mine in New Ireland, 900km northeast of Port Moresby, the capital, is struggling. UBS analysts told the Australian Financial Review in July that the mine's owners, Melbourne-based Newcrest Mining, could be gearing up for a write-down of 2.5 billion Australian dollars ($1.8 billion) following lower returns.

China Metallurgical Group, a Chinese state-owned company, is building the Ramu nickel and cobalt mine on the northern coast at Madang. However, the project is opposed by locals due to pollution fears and anger about the use of workers sent in from China.

Trouble abroad, too Indonesia, the Solomon Islands, New Caledonia and Fiji are also suffering mining headaches as a result of the decline in commodities prices, which has tracked falling demand in China's slowing economy.

In Indonesia, the Grasberg copper and gold mine, 500km west of Ok Tedi's mine, is in a dispute with Jakarta over plans by its owner, U.S.-based Freeport McMoRan, to export 575,000 tons of copper concentrate. Indonesia has banned raw copper exports and demands the construction of local smelting facilities instead.

In the Solomon Islands, the Gold Ridge mine on Guadalcanal closed two years ago after flooding. The mine's Australian owners sold it for A$100 to a local group. But the government last month declared Gold Ridge a disaster area, saying that a toxic tailings dam could burst and pollute the area's palm oil-rich plains and lagoon.

Slumping demand has seen investments in bauxite mining in Fiji come largely to an end. Tens of thousands of metric tons of the mineral are being stockpiled, promoting a parliamentary investigation in the wake of landowner complaints.

Prospects are improving in French-run New Caledonia, where nickel mining has been plagued by environmental concerns and land protests. The Brazilian-owned Vale New Caledonia mine is moving into profit, although it continues to suffer extensive vandalism linked to a local independence movement.

Peter O'Neill interview: Papua New Guinea leader keen to keep building LNG industry

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Papua New Guinea, hurt by commodities drop, on brink of Greek-style crisis

2015-08-06T18:09:00.000+10:00

Date: August 6, 2015 - 12:23AM

John Garnaut

Asia Pacific editor for Fairfax Media

View more articles from John Garnaut

Prime Minister of Papua New Guinea, Peter O'Neill. Photo: Joosep Martinson

Australia's nearest neighbour could be on the brink of a Greek-style fiscal crisis following one of the most spectacular budget blow-outs in regional history.

The projected budget deficit in Papua New Guinea's has been revised up, hitting 9.4 per cent, which is more than double last year's deficit and getting close to the 12.3 per cent figure which helped tip Greece into meltdown last year.

The commodities price downturn, worsened by poor oversight of the nation's mining industry, has been brutal to Papua New Guinea's budget. Photo: Jon Reid

The budget implosion will come as a shock to leaders in PNG and also Australia, who have consistently played down the impact of corruption and sliding commodity prices.

In December the top adviser to PNG Prime Minister Peter O'Neill accused a former Australian Treasury officer, Paul Flanagan, of "political interference" when he warned that such a crisis could be coming.

Foreign Minister Julie Bishop assured reporters at the time that PNG was about to become the fastest growing economy in Asia, with GDP growth as high as 20 per cent.

"Huge revenues are going to be coming into PNG," she said on December 14.

And PNG has since become Australia's largest aid recipient, overtaking Indonesia, with budget outlays expected to reach $554 million this financial year.

But this week's mid-year budget estimate in PNG admits that the huge rivers of resource revenue have failed to materialise.

Instead, economic indicators have all turned south, with overall government revenue expected to shrink by a whopping 20.7 per cent this calendar year.

"This is a frightening document," said Mr Flanagan, in a fresh analysis which he released on Wednesday, showing that the looming crisis had exceeded even his pessimistic expectations.

The resulting budget deficit "would be the highest in PNG's history", he said, surpassing the figures that pushed PNG into balance of payments and economic crises in the late 1990s.

"In Australia, such a rapid change in the estimated fiscal position would go well beyond being termed 'a budget crisis'," he said.

Economists say PNG could either slash spending on crucial services, risking a humanitarian crisis, or seek a bail-out from international partners.

PNG, like Australia, has been struck by collapsing commodity prices. But the impact of falling prices has been compounded by management problems at major resource projects, particularly the recently-nationalised Ok Tedi copper and gold mine.

And it has been compounded by a series of huge corruption scandals. Many of those scandals are closely connected with Australia, which has been accused of sheltering corrupt officials and turning a blind eye to laundered funds.

Last month Fairfax revealed video footage which showed Australian lawyers coaching clients on how to pay bribes "in dribs and drabs" and launder the proceeds in Australia.

A warrant was issued but not executed for the arrest of the Treasury Secretary Diari Vele on corruption charges recently.

Anti-corruption activists in PNG have claimed that Canberra has been compromised by its reliance on Prime Minister Peter O'Neill and the Manus Island asylum seeker detention centre.

Ms Bishop told Fairfax she would not let Australia become a safe haven for proceeds of corruption in PNG

Economist warns govt

2015-08-06T17:31:00.004+10:00

Source:The National, Thursday August 6th, 2015

AN economist has warned the Government to exercise wisdom in managing the economy and to avoid burdening the children of tomorrow with “excessive and imprudently accumulated debt”.
Institute of National Affairs executive director Paul Barker told The National yesterday that the Government should have had a supplementary budget as early as last December to make adjustments on allocations in the 2015 national budget.
“There may be recoveries of energy prices and other commodity prices in the next months, but the Government certainly should not bank on it,” he said.
“Now is not the time for brinkmanship, but for wisdom and from learning past lessons.
“And certainly not unduly burdening the future population with excessive and imprudently accumulated debt.”
He was commenting on a report from Treasury on its mid-year economic and fiscal outlook.
He said it was time for the Government to be mindful of the past mistakes and change from it.
“It’s time for focus and stimulating the other sectors, and restraining unsuitable impediments on agriculture and other renewable resources industries, from top heavy and politically controlled new regulatory arrangements,” Barker said.
“As well as ensuring that the investment (including taxation) rules are applied even-handedly to all businesses and investors, not on a selective, or preferential basis, with some exempt.
“A supplementary budget, even if it’s months after it should have occurred, would remain preferable to the administrative cuts occurring now.”
Barker said it would have allowed the process to be undertaken in the open, “with Parliament and the public able to see how allocations are adjusted and for some level of debate into what the priorities should be and how they should be safeguarded”.
“What the Government seems to be doing now has been budget reduction by attrition, instead of using a supplementary, notably by simply failing to release budgeted funds to respective government agencies and provinces, but seemingly deferring payments to contractors.”
He urged the Government to manage funds wisely.

Admit PNG in financial crisis: MP tells Govt

2015-08-06T17:30:00.000+10:00

Source:The National, Wednesday August 5th, 2015

OPPOSITION leader Don Polye has urged the Government to admit that the country is in financial turmoil.
“The Government is so secretive about this cash flow shortage problem, thus keeping government institutions, business houses, financial institutions and even the people in suspense,” he said in a statement.
“The Government is irresponsible in failing to tell the truth so as to prepare the people to adjust to the financial crisis at hand.”
He said schools in Morobe were closing down and soon schools in East Sepik and in other provinces would follow suit.
Polye said the signs of a financial crisis included:

· K200 million budget cut to the Health Department;

· forcing the National Fisheries Authority to declare half-year profit and pay dividends to the Government contrary to set procedures of declaring profit at the end of a financial year;

· forcing the National Petroleum Company to declare a half-year profit to pay dividends to the Government to boost cash liquidity;

· lack of funding for the National Development Bank; and,

· Mismanaging PNG Power Ltd, resulting in its bankruptcy.

Polye said the solution should be introducing a revised budget to correct the 2015 Budget figures, then advise the country of strict belt-tightening measures to follow.

Polye: National security is at risk

2015-08-05T17:27:00.000+10:00

Source:The National, Wednesday August 5th, 2015

OPPOSITION leader Don Polye says national security is at risk given that a number of foreigners were recently appointed as heads of State-owned enterprises.
“I am not talking about race nor am I talking about skin colour,” he said in a statement yesterday.
“We have to be careful that confidential information and state secrets are leaked out as they are here for better perks and privileges.”
Polye called on Prime Minister Peter O’Neill to exercise caution in the appointment of foreigners because PNG had highly qualified professionals who should be given a chance.
“These foreigners are appointed by the O’Neill Government into positions at the expense of local professionals,” he said.
“I am calling on Papua New Guineans to be wary of a Prime Minster who uses all kinds of disguises to belittle and ignore the rights and the potential of our people in their own jobs and businesses in their own country,” Polye said. He condemned the Government for failing to live up to its promise to promote small to medium enterprises “with financial backing”.
“It was appalling to note that more than 200 customers at the National Development Bank, with loans worth more than K53 million having been approved, but credit has not been transferred due to non-funding in the light of the government’s revenue problem,” he said

State: Stay calm

2015-08-05T17:25:00.000+10:00

Source:The National, Wednesday August 5th, 2015

By MALUM NALU
THERE is no need for a supplementary budget at this stage of the financial year because the national economy is being well managed, Finance Minister James Marape says.
“There is no need for a supplementary budget at this stage. We are controlling expenditure through warranting and cash flow management,” he said.
He told the people to stay calm when responding to a call by the Opposition for a supplementary budget to take into account unforeseen factors in the 2015 national budget such as the drop in global oil and commodity prices.
The next session of Parliament will start on October 27 which is expected to run through to the 2016 budget session in November.
Marape admitted that revenue forecast in the 2015 budget had been affected by the drop in global commodities including oil (by 50 per cent) which “is something we can’t control”.
“What is within our control is to manage our economy by sticking to core priority areas of our budget and curtailing wastages and recurrent expenditures as well as deferring some development agendas to future budgets,” he told The National.
Deputy Opposition leader Sam Basil said they were hoping that the Government would pass a supplementary budget so that they could manage the economy well.
“The economy is in a recession right now. Oil prices are going down and they are doing department cuts and calling everyone to Port Moresby to do cuts, which will affect the delivery of goods and services,” he said.
“We strongly think that a supplementary budget is the way to go but they haven’t done that.
“In the next few months, what is the Government going to do aside from asking departments to make cuts?
“If they ask departments to make cuts, and make figures, they have to print those figures in the newspapers to tell investors and the people that they are managing the economy.”
A treasury department statement this week said the fiscal outlook had deteriorated in the first half of 2015.
“With no adjustment to budgeted expenditure in 2015, the fiscal position is expected to be a deficit of K4,817.4million or minus 9.4 percent of GDP - an increase of K2,545.6million compared to the initial deficit of K2,271.8million or minus 4.4 percent of GDP at the time of the 2015 Budget.
“This mainly reflects a significant downward revision to tax and non-tax revenue receipts, particularly from mining and petroleum taxes, and low receipts of dividends from State entities.”
The Treasury says total revenue is estimated at K11,381.7 million with the short fall of K2, 545.6million. The estimate for expenditure and net lending remains at K16,199.1m.
It also expects the debt-to-GDP ratio to rise to 41.3percent, “exceeding the debt limit of less than 35 percent of GDP as set out in the amended Fiscal Responsibility Act 2014”.
The Treasury department says the immediate challenge for the Government “is to maintain fiscal discipline throughout the second half of 2015”.

Cabinet order to disband task force to go to trial

2015-08-05T17:23:00.000+10:00

Source:The National, Wednesday August 5th, 2015

NATIONAL Court proceedings relating to Cabinet decisions to disband Operation Task Force Sweep in June last year will go to trial next month.
Chairman Sam Koim, pictured, filed judicial review proceedings in the National Court last year challenging the process involved by the National Executive Council in arriving at its decision to disband the team.
Justice Colin Makail, who presided over the matter in Waigani yesterday, told counsels that the trial would start on Sept 29.
Koim’s lawyer advised the court that the review was filed and served to the respondents – Prime Minister Peter O’Neill, National Executive Council and the State.
Lawyer Tiffany Twivey, representing O’Neill and NEC, advised the court that she needed to cross examine Koim on factual issues relating to his contract of employment.
She said one legal issue was whether the court had powers to review executive decisions.
Lawyer Nicholas Tame is representing the State.
All parties have engaged overseas counsels for the trial that is expected to take two days.
The National Court in July last year granted a stay of Cabinet’s decision to disband Task Force Sweep Team pending the determination of the judicial review proceedings.

Minister hails road completion

2015-08-05T17:21:00.000+10:00

Source:The National, Wednesday August 5th, 2015

WORKS Minister and Imbonggu MP Francis Awesa has welcomed the completion of the Mendi-Kandep Road last week by Chinese company COVEC.
The road will for the very first time link Southern Highlands to Enga.
“It’s a very important project as far as this Government is concerned,” Awesa told The National.
“It’s one of the projects we have funded - well over K250 million - which has opened up Kandep in Enga to Mendi in Southern Highlands.
“It opens up Laiagam and Porgera in the Enga.
“Now you can travel from Porgera to Laiagam to Mendi in two to three hours.
“Previously, there were no road connections. It’s all ready to go and I’m looking forward to the opening.It’s now just one hour from Kandep to Mendi.
“We spent about K300 million, and for the first time, I’m very happy to report that we’re going to open this important road.
“This is a very important access, shorter in terms of getting flights for people from the Western end of Enga to come to Mendi and catch flights to Port Moresby and other places.”
Awesa said plans were afoot to connect Tari in Hela with Mendi.
“We are spending about K90 million on that,” he said.
“It will be about one-and-a-half hours from Tari to Mendi, short-cut from Kandep, Laiagam and Porgera into Mendi.
“We have the Mendi Airport coming up.”
Awesa said these major impact projects will open pto link the two provinces.
“These services will help improve the delivery of basic services at the village level,” he said

Mendi-Kandep Road Construction ends @ a Cost of K166m

2015-07-31T13:29:00.002+10:00

K166m road work ends

Source:The National, Friday July 31st, 2015

THREE years of work on the K166 million 50km Mendi-Kandep Road linking Enga and Southern Highlands have come to an end.
The road, through rugged and mountainous terrain was completed by Chinese contractor COVEC (PNG) last week under Asian Development Bank funding. An official opening date is yet to be confirmed.
Leaders such as Works Minister Francis Awesa and Kandep MP and former treasurer Don Polye had been pushing hard for this project since 2012.
COVEC (PNG) acting general manager and project manager Tony Liu said it was the first time for a direct road connection between Southern Highlands and Enga.
“I’m very, very happy that this road has been completed on time,” he said.
“We built this road to a very high quality and the local people will benefit.”
Liu commended the local people for their understanding and help, the Government, sub-contractors, and landowners.
“This is teamwork, not only one party could have completed this road,” he said.
“We will continue to maintain the road and we look forward to more opportunities to contribute towards the development of this country.”

More Photos of the Current Mendi-Kandep Road in the Photo Gallery on this blog; Refer LINK HERE!

Kavo allowed to sit in Parliament

2015-07-31T13:15:00.000+10:00

Source:The National, Friday July 31st, 2015

Reports by MALUM NALU
SPEAKER Theodore Zurenuoc says jailed Gulf Governor Havila Kavo is allowed to sit in Parliament.
He said he would not allow any more debate on it following questions from deputy Opposition leader Sam Basil about the “convicted Gulf prisoner having access to this Parliament”.
Zurenuoc said: “You need to go and seek legal advice on that. It’s obvious that he has been charged under the Leadership Code. It does not affect his sitting in the chamber, I’m sorry.”
East Sepik Governor Sir Michael Somare complained about Kavo being allowed to enter Parliament.
“He is already convicted, it is a criminal case. So how can you allow him in?” he said.
Zurenuoc said leaders facing a leadership tribunal were different from those charged under the Criminal Code.
“It’s beyond the control of this House to deal with the Gulf governor. But in the case of Honourable Members before leadership tribunals, there is a different set of laws,” Zurenoc said.
“It’s obviously very clear, there’s no point for us to argue on this one. I will not entertain any more, I made a ruling.”

Ban Sees Positive Outcomes

2015-07-31T13:08:00.000+10:00

Source:The National, Friday July 31st, 2015

INDICATIONS are clear that banning tulait-tulait buses from the Highlands Highway will reduce road accidents noticeably, a senior police officer said.
Chimbu provincial police commander Albert Beli said yesterday that Chimbu normally recorded one or two road accidents involving the night buses in a fortnight.
But the trend has stopped over the first fortnight of the ban, he said.
Beli said it was too early to make a fair assessment but from the way things were going, the ban indicated positive outcomes.
“The passengers are happy that the drivers were stopped and told to have a proper sleep on the roadside before travelling the next day,” Beli said.
“The checkpoint communities are helpful by helping police and the travellers.
“The compulsory roadblocks will continue until such time that we see no tulait-tulait vehicles,” he said.
He said the body of a woman killed in a road accident two weeks ago is still at the Goroka Hospital.
The woman was a passenger in a tulait-tulait bus travelling from the coast up to the Highlands when the bus ran off the road

Writing was on wall for Ok Tedi mine

2015-07-30T16:12:00.000+10:00

Source:The National, Thursday July 30th, 2015

JUST over 18 months after Prime Minister Peter O’Neill announced the 100% takeover and ownership of the giant ok Tedi mine by the PNG Government, OTML announces a temporary shutdown of operations.
One wonders whether the environment and the market conditions really had anything to do with this temporary closure.
We are told that more than 300 national employees will be made redundant. Another 1, 500 will be stood-down and more than 5, 000 contractor employees will either be stood down or also made redundant. This exercise affects more than 6,800 employees involved in the Ok Tedi mine.
Within the corridors of OTML headquarters, in the work places, streets and outskirts of Tabubil, it is too common a story that there are chronic underlying issues then the so called “dry weather” and “low metal prices” window dresser pictures being painted to the rest of the country.
Its roots go back to the Government’s takeover of the mine from. Through poor strategic planning, imprudent and mismanagement of OTML, the once great company was laid bare for the taking.
The signs were already there by early fourth quarter 2014 - Ok Tedi was struggling to keep afloat.
At the changing of the guards in December 2014 the company barely survived. The signs were there again in March 2015.
Through prudent management by a new national executive the reserves obtained were able to get Ok Tedi through to June and July of 2015.
At the questionable changing of the guards again by the government in May 2015, it was only a matter of time before things fell apart-this time for the worst. The dry weather was the perfect excuse. Now the results are evident.
It is quite disturbing recalling the events of the past 24 months, under the previous senior management’s leadership:
How decisions were made and approved to finance so-called Mine Life Extension projects like: the Parker donggas, the Rubber Crumb Plant, the Crusher and Batch Plant, the Motor Rewind Shop, the country club construction, the DIWAI Hospital accommodation and teaching facilities project, the major company redundancy and restructure of 2014, and the ensuing overhaul of work roster change to name a few. I wish I had more space to put the data and figures down to show the startling costs of these projects compared to the actual benefits they have brought in for Ok Tedi while violating its own project management processes which would have prevented such fall outs.
These major spending on so-called Mine Life Extension Projects were not for the Ok Tedi Mill Operations and Mine Production, the business units which make money for Ok Tedi.
These major capital investments had no direct benefits to Ok Tedi at all. Yet they accounted for about 40% of the capital expenditure budget in 2013 and 2014. What a blunder.
These projects never had any known proper formal technical feasibility study done to ascertain their viability and benefits through competent technical and economic evaluations.
If they were done, certainly there was no technical capacity to evaluate them as the Engineering Services Department, the technical brain of this project, was already dissolved by the OTML Management on the eve of these projects.
Looking back, one thinks whether hard earned revenue was strategically squandered on these major projects since they have had no practical benefit to the company.
It is startling to imagine how the OTML board and the PNG Government scrutinised these projects and major company changes.
Was the Government ill advised? Did the government lack the competence to ask the right questions? Did the government consult the technical details of these projects? If so, were these details reliable?
One thing is for sure, there is nothing to show for the benefits of most of these projects just 24 months on.
The then senior executives and cohorts brought in their cronies who restructured the company to lure in more of their kind and siphon out money from OTML and PNG causing many job losses to PNG nationals during the major company redundancy in 2013.
The 2013 workforce strike was to prevent the redundancy exercise and major company changes because this was foreseen. Neither the government nor the land owner leaders were able to see this coming!
Even though the Prime Minister was given ample evidence and plea by OTML employees, on his visit to Tabubil during the 2013 strike, this far cry fell on deaf ears. No job loss was promised. It is sad to say that this never eventuated.
The company was restructured. Many employees lost their jobs. Systemic Failure commenced. Ok Tedi was set up for this fall.
It is frightening to think that this happened right under the nose of the Government and the local land owner leaders - people who were mandated and entrusted with to look after the national interests of simple people.
Now, after 18 months, the results of that day speak for themselves. And not only the remaining employees of that day but the local community, Western province and PNG will now bear the brunt of the lack of leadership.
Whether the Government then was acting on poor advice or decided to ignore caution. The damage is done.
OTML, once immune to external market forces, environmental conditions and political interference, is suddenly susceptible to “dry weather” and “low metal prices” condition, not to mention the lower than normal quality of gold and copper it is now producing.
Only the OTML management and the PNG Government know the primary reasons why the mine is now going into this shutdown mode.

Abib Maan
Tabubil, Western
______________________________________________________________
Related News Link
Polye Upset Over Ok Tedi Mine Closure
Ok Tedi PNG Copper Mine output stalled by low river level
Papua New Guinea's Ok Tedi Mine Suspends Production, Stands down workforce
Opposition Leader Upset over Ok Tedi's Move