Federation backs Ok Tedi mine takeover

 THE Resource Owners’ Federation of PNG is supporting the government’s move to legislate ownership of Western’s Ok Tedi mine.

Federation president Jonathan Paraia yesterday said the Singaporean-owned PNG Sustainable Development Program (PNGSDP) Ltd was really a smokescreen for BHP Billiton, which never left Papua New Guinea.

“The government of prime minister Sir Mekere Morauta had, in 2002, announced that BHP will no longer be part of the Ok Tedi mining operations,” Paraia said. 

“The general feeling then was that our people will take full control and ownership of the mine through the state. However, that was not the case as BHP still had control over the mine through PNGSDP Ltd.”

He said this controlling factor was evident in the board of PNGSDP, which comprised two categories of directors; the As and the Bs.

He said the PNGSDP’s annual report last year showed three people with links to BHP, including the board chairman, were appointed to its board of A directors. Others in that category included a Singaporean director and the chief executive of PNGSDP.

Those in the B category included a director appointed by the minister for treasury, a director appointed by the Bank of Papua New Guinea and a director appointed by the PNG Chamber of Commerce and Industry. 

“This clearly showed that the board of PNGSDP was fully controlled by people with links to BHP. The state, for the people of PNG, has never had any say since 2002,” Paraia said.

“The Western people did not have any say on the board of PNGSDP until recently when the Western provincial administrator was assigned an ex-officio board position.

“The question of a tailings dam has been a hot topic of discussion for more than 10 years and now that Prime Minister Peter O’Neill and his government had exerted control over the mine, perhaps something positive will be done.”