Govt engages consultant to audit Sinivit gold mine ops

THE government through the Mineral Resources Authority will be engaging an independent consultant to audit New Guinea Gold (NGG) mining operations at Sinivit, East New Britain.
Mining Minister Byron Chan and newly-appointed acting MRA managing director Philip Samar, made this known after meeting with landowner representatives of the Wild Dog Mining Area Landowner Association and Lulai Nakama Association of Sinivit in Kokopo on Saturday.
The aggrieved landowner groups petitioned the government to immediately remove operator NGG for not complying with the memorandum of agreement (MOA) and other revised MOA commitments.
Local lawyer representing the landowners, Wesley Donald, called for the removal of NGG because of:
n Environment compliance being below par;
n Lack of provision of basic services such as health, education and other infrastructure as stipulated in the revised MOA;
n Non-payment of dividends to landowner companies; and
n Lack of outstanding royalty payments.
The landowners have demanded full control of the mine and urged the government to move quickly and grant a mining licence to them, noting that NGG’s mining licence (ML 122) expired on Feb 16 this year.
Chan said the landowner concerns were genuine and he would do everything to address them.
But, he would have to wait for an independent audit of the NGG operations before any further actions could be taken.
“I understand the impacts of mining in the area and Sinivit is state’s interest and I have to be neutral,” he said.
“I totally agree with your concerns and will work closely in addressing issues raised in the petition.”
Chan said he would ask Environment Minister Thompson Harokaqveh to make an independent environment assessment report before making any further decisions on the mine’s future.
He said although the company’s mining licence had expired, the existing mining act allowed for the company to continue normal operations until such time the government thought otherwise.
But Canadian miner PNG Gold Corporation has conditionally agreed to acquire struggling NGG, including mining and exploration licences for the small Sinivit gold mine by May 31, 2012.
Meanwhile, landowners had confirmed that the company was slowly scaling down its operations and have sold all its assets to PNG Gold Corporation.