Landowners must think carefully

 ON the eve of Prime Minister Peter O’Neill’s historic visit to the Autonomous Re­gion of Bougainville this week, the Ok Tedi/Fly River environmental damage issue has reared its ugly head again.

This time a group of lan­d­owners managed to convince the Waigani National Court to issue certain orders, which could have far-reaching consequences on the future of the giant Ok Tedi mine in Western Province.

The court orders, issued by Deputy Chief Justice Gibbs Salika last Friday, refrain Ok Tedi Mining Limited (OTML) from dumping mine waste and tailings into the Ok Tedi and Fly River systems pending the hearing of the substantive matter on February 12. The judge ordered the plaintiffs to engage a reputable environmental scientist or firm to conduct extensive research into the extent of environmental pollution in the Fly River and its social, health and economic impact on the people.

As well, the court ordered the Government to provide details and records of how it spent the dividends it received from OTML from 2001 to 2013 and ordered a freeze on several trust accounts.

The court granted the orders on an urgent application filed by lawyers Allan Bainyamai and Samson Jubi on behalf of the seven plaintiffs led by Pastor Steven Bagari. 

The prime minister responded immediately to the court orders and warned that the possible consequences of the court decision were “absolutely massive”.

“It is absolutely critical landowners understand that before they contemplate legal action from which lawyers are most likely to be the only winners,” O’Neill said in a statement released during the first day of his visit to the AROB.

“I hope the courts generally understand the consequences of claims they are hearing. We don’t just rely on the courts to uphold the law; we rely on the courts to appreciate the consequences of their decisions and rulings.”

We agree with O’Neill that landowners in major resource project areas need to be fully aware of the possible consequences of court action they take with regard to the future operation and viability of major projects. 

Landowners need to understand that the action they have taken could have horrendous financial, economic and social consequences for the mine, themselves and the nation.

The prime minister is a­d­amant that the action by landowners in the mine area, and along the Fly River, was prompted by lawyers who would end up being the main beneficiaries because of the high fees they charge.

We understand that K45 million will be released from the Ok Tedi trust funds to, among others, pay for the environmental study, which is expected to produce a preliminary report within three months. Customary landowners in Papua New Guinea are a hard-sell and hopefully the lawyers for the six plaintiffs in this case will have fully explained to them that they will not benefit directly from these funds as their legal action against OTML and the Government is for the greater good.

Another consequence of this court decision is that it places the eminent persons’ discussion (EPD) on the future of the Ok Tedi mine in jeopardy. The EPD is aimed at seeking a resolution between the PNG Government and BHP Billiton on drawing down long-term funds held in trust by the PNG Sustainable Development Program (PNGSDP).

There is another concern that BHP could view the court decision as a definitive step towards an environmental damages claim against the Australian-based global mining giant, which had previously operated the Ok Tedi mine.

Under the current rules of the Ok Tedi supplementary agreement, the long-term funds worth K2 billion would be released only after the closure of the mine. 

BHP’s consent is needed if the Government wants to access the funds before the mine closed. BHP could reconsider giving the PNG Government the green light on the Ok Tedi long-term funds if it thinks the current court action is heading towards an environmental damages claim.

O’Neill has assured the people of Western that his Government is not just addressing their concerns but is in the process of actually resolving them.