NGG set to resume ops

Business, Normal
Source:

The National, Thuresday 12th January 2012

NEW Guinea Gold Corp, owners of the closed Sinivit Gold mine in East New Britain, announced last week that they were set to recommence operations following a period of occupation by representatives of the Wild Dog Mining Area Landowner Association (WDMALA) and Lulai Nakama Association.
The company’s acting chief officer Greg Heaney said that on Jan 4,  NGG staff with the support of the local police force returned to the site and took control of all site plant, machinery and associated facilities.
“Following further meetings between NGG representatives and the Landowners on Jan 5, a safety assessment was completed and mining and processing operations recommenced.
“In relation to the demands made by the landowners, as previously conveyed, all royalties have been paid in full to the Mineral Resources Authority, which is now responsible for their distribution,” he said.
Heaney said all other claims would be addressed in the coming months in negotiations with the landowners and other stakeholders.
“Contrary to some reports in the media, there have been no leaks from any of the processing vats or heaps on site before, during or subsequent to the occupation.
“NGG remains extremely diligent with respect to its care of the environment,” he clarified.
He added that while it was pleasing to have resolved the situation on site, there remained a significant amount of work to do to re-establish cordial relations with the landowners.
“NGG is committed to its social responsibility and will use all available resources to ensure a fruitful and cooperative working framework is in place for the mine’s future,” he said.
Attempts to get comments from the management were unsuccessful.
The mine closed down last year after disgruntled landowners occupied the site to claim payments that were never made to them by the company.
This prompted Gov Leo Dion to step in and call for the landowners, the company and the MRA to work out a solution that would benefit everyone.
According to the NGG announcement made last month, the landowners claimed the company owed them K3 million in royalties and K700, 000 in compensation for environmental damage.
It is understood by The National that the parties were to have met this week to further discuss the temporary closure of the mine and possible outcomes of the negotiation so far.
However, this was deferred to next week.