Monday 6 October 2014

Importance of Sustainable Development – Australia & Papua New Guinea Relationship.


Sustainable Development can be best defined as “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs,” according to the World Commission on Environment and Development’s (Oxford University Press, 1987).

Sustainable Development is only used when human beings put dollars and cents before common sense. This is a developing countries phenomenon. (Mete, R, 2014.) Despite often being labeled as a “mountain of gold floating in a sea of oil” Papua New Guinea or Papua New Guineans, have yet to experience the benefits promised by mining and other extractive industries (MPI, 2012). With poor education standards, increasing infant mortality and declining services all contributing to a static Human Development Indicator, Papua New Guinea have a right to question the assumption that ‘ extractive industries brings development’.

Australian miners have staked Papua New Guinea, where the incredible prospectivity is enough to outweigh its challenging operating environment, as a brave new mineral frontier. But the ever challenging balancing act of operations versus landowner concerns threatens to turn the Pacific elephant country allure into an elephant graveyard for careless miners.  

Melbourne-based Newcrest Mining Ltd is the most prominent face of a new generation of Australian miners trying to tap opportunities in the Pacific. Pascoe A, in Australia’s Paydirt article published in September 2012 says while Australians have long dominated PNG’s mining sector, the nation has been revived as a hot frontier for Australian miner delving into elephant country as traditional minerals domains dry up.

Australian miners are no strangers to making mines work in highly challenging environment – notably in Sub-Saharan Africa in the past decade; where they have been credited with bringing along their high domestic standards in occupational health and safety to other countries. The Federal Government sponsored mining for Development initiatives to build on that reputation in the realm of community development. However, the evidence suggests the quality control exported by Australians in the Pacific is more problematic.

Perhaps this reflects the ignominious legacy of Australian miners in PNG – namely the Ok Tedi, Panguna and Watut River by Hidden Valley catastrophes, the former arguable among the worst mining environmental disaster ever, the other partly responsible for a war (Bougainville) which killed 16,000 people including women and children.

The historical implications isn’t a good start given companies are working with a state and bureaucracy rife corruption, which appear to have intensify with the development of the US15.7 billion PNG LNG project in the highlands of Papua New Guinea. Operated by ExxonMobil-subsidiary Esso Highlands Ltd, the LNG  projects has ignited renewed interest in the nation’s resources sector and the two governments fighting for leadership rights prior to the recent election have both sought to capitalize on that.

In Papua New Guinea, this means, for example, amending the Environmental Act to allow Ramu Nico to deposit tailings into the ocean. And while miners may see the lax regulatory environment as a necessary trade-off given the steeper risk gradient they undertake by trying to build projects in Papua New Guinea, the down side may outweigh the benefits.

The concerns of landowners have tended to be the bigger casualties of the recent new push for investment as a weak regulatory environment makes the corporate social responsibility requirement set by the government more opaque. However, as Rio Tinto Ltd found out in Bougainville – and as the new generation of miners are beginning to discover; Papua New Guinea is not a country where miners and developers can afford to pay lip services to landowner’s discontent regardless of the level of engagement required by government. 

It is time now that the young people in both Papua New Guinea and Australia look for opportunities that are being available such as Dialogues and Conferences to empower youth’s participation and sharing information through the Information Communication Technologies platform that are available and use them to get their voices to be heard. In addition, young people should rediscover themselves as young men and women – future leaders for tomorrow, reclaim that the source of action and responsibilities lies within our self. The next step is to think globally and to think humanity as a single moral community linked by mutual responsibility. The youth population of today should be encouraged to participate more actively on this journey. The young generation should act responsibly now, because older we are, the deeper our roots are in the past and less able we are to see ways in which the future is developing.

Flaws in environment and mining laws with duplicate responsibilities of government regulators, absent of impact assessments and baseline data can be identified as the barrier to Sustainable Development. According to Australia’s Paydirt (2012) article, Newcrest PNG Manager Peter Aitsi argues that landowner discontent reflects a lack of manpower in the government departments charged with overseeing regulation of the resources sector. “The kind of support the agencies responsible for the sector are given is very poor,” Aitsi told Paydirt in Port Moresby. “So as a result, some of the frustrations we’re seeing from our communities are intensifying because of the lack of confidence within the process, and that can only be restored if we have functioning, better resourced government representation.” But Dr Gavin Mudd, a Melbourne-based environmental engineer specializing in mining who regularly visits Papua New Guinea said while the track record of Australian miners in PNG was partly an indictment on government, that didn’t make it a get-out-of-jail-free card. “Miners can’t just complain that government isn’t pulling its weight,” Dr. Mudd said. “At the end of the day they’re in control.” (MPI, 2012).

Another bi cause of landowner agitation is the lack of transparency and communication by developers with affected communities. Many land owners in Papua New Guinea are being “starved of information” and  the developers are not paying enough attention to the risk that presented. Most developers easily underestimated the concerns and impacts of landowners. This is a basic risk management, and you cannot break that sort of perception by being secretive – you’ve got to be open.
Papua New Guinea should by now develop own policies and regulations to guide Sustainable Development. This is the call every Papua New Guinea landowners should raised with their political leaders to hold them responsible enough to promote Sustainable Development.
Given the reality that Papua New Guinea have a total of eight mines, by which three of these are purely gold mines, three gold and silver mines, one copper and gold and one nickel and copper. These make the country one of the world’s resource rich nations, and pumps about three quarters of revenue into the country’s economy. However, the management of mine tailings disposal is said to have been overlooked over the years by government, developers and stakeholders causing a national threat on the health of future generations, particularly on our mass rural population.
According to the Constitutional and Law Reform Commission of Papua New Guinea, It is strongly recommended that the government should seriously look at the environment, health and social impacts of all extractive industries rather than concentrating more on the revenue generation.

There should also be call to Australian Government to impose stricter standards on miner’s overseas practice and the government silence implied consent for repugnant behavior. The Australian government does not seem to mind if the actions of Australian miners lead to the destruction of lives and livelihoods of Papua New Guinean. Papua New Guinea and the Pacific are ripe with opportunities for miners and in so, Papua New Guinea Government needs to ensure it’s ready for it. This means that people who come in and do the right thing by the communities they operate in, and do the right thing by the Government that gives them the license to do so.


Papua New Guinea is a very prospective country. But it’s not just a matter of how many tonnes of metal you’ve got in the ground; it’s actually how you spread the value from that, making sure you generate more benefits than you do impacts. 

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