Lihir customary landowners describe mining agreement review as “ethical genocide” - giving notice of intention to sue Newcrest Mine

By CYRIL GARE l NEWS

THE Lihir gold mine is imposing “ethnical genocide” on the island by its “divide and rule” techniques over landowner groups through the Lihir Agreement Review (LAR) process which is currently taking place on the island into its third week. 

Ms. Roselyne Arau, Londolovit Sagomana Association (LSA) chairlady showing the new proposed terms document by Newcrest Mine to her people during a community meeting at Londolovit village last Tuesday – Jan 15, 2019. Image: CYRIL GARE.

Disgruntled, the water resource owners through their Londolovit Sagomana Association (LSA) Chairlady, Ms. Roselyne Arau said what the mining giant, Newcrest is doing is “divide and rule” over tribal groups by removing umbrella customary landowner (CLO) structures with “deal direct” arrangements with individual clans.

Ms. Arau said while the Ministry and the Department of Mining through Mineral Resources Development Authority (MRA) remain tight-lipped over the situation, Newcrest is “dictating” over the LAR process.

“Newcrest hired consultant firms like Tanoroma and Deloitte which have been visiting individual” landowner groups under the various 14 tenements to have them sign new agreements or “proposed terms” against their consciences”.

The “new proposed terms” – among others - seek to:

- avoid umbrella structure of LMALA;

- put in place “direct relationship” with tenement holders (CLO’s);

- establish a new “Foundation” in place of LMALA to “ensure effective operational governance, discipline, and accountability” of all parties;

- remove the current 5 year cycle of review, agreements under the new “proposed terms” will now extend to the entire “life of the operation” of the Lihir gold mine; and

- Others.

“The frightening part is that the new “agreements will be for the life of the operation” meaning that there shall be no more reviews after this one for the entire lifetime of the mine.

“This will remove landowners’ right to arbitration and dispute resolution guaranteed in our Constitution and democracy.

It is ethnical genocide… it is “divide and rule” technique by a multi-national corporation such as Newcrest who employs such techniques when faced with standoffs by landowners and governments of resource-rich third world countries”.

“We will fight it tooth and nail and will not bow down. Our heritage, our traditional rights to property ownership is guaranteed in the National Constitution and Customary Law of PNG, we will not comprise this because our children will curse us for our inaction,” Ms. Arau said.

Currently, LAR is a five year cycle process. Since 2017 there was no LAR because of the grievances and discernments by landowner factions.

The water resource CLOs of Londolovit categorically had refused to become a party in the LAR by way of a letter dated March 14, 2016 after having receiving unsatisfactory responses from both the PNG Government and Newcrest Mine over its outstanding water issues.

With the suspension of LMALA “gold” resource owners in 2017 by IPA and refusal by Londolovit “water” resources to participate, the entire LAR process is already affected by meaning of law under the “Lihir Agreement”.

LAR Independent Chairman, Sir Paul Bengo is on the island hosting various CLO meetings and receiving submissions from them could not immediately comment on the situation.

In a letter dated Jan 14, 2019 to Mr. Craig Jetson, Newcrest Mine Executive General Manager – Cadia and Lihir Operations, the association has given notice of its intention to sue Newcrest for “interfering” with its affairs which comprise the “common collective interests” of the 14 clans of Londolovit.

Nonetheless, Newcrest is not backing down. In an email dated Jan 15 to the Association’s Roselyne Arau, Mr. Jetson stated: “Acknowledged. A response will be forthcoming but our position remains unchanged from all other correspondence on this matter, replying to email.”

Lihir landowner association executives have been reinstated by court

By CYRIL GARE l NEWS – LAR process

The suspended executives of the Lihir Mining Area Landowners Association (LMALA) on Lihir island, New Ireland province have claimed that they have been reinstated by the Court. 

LMALA’s Sebastian Yanasa (standing), Joe Chik Chaki (sitting L) with their group at Londolovit village on Wed, Jan 23. Image: CYRIL GARE.

LMALA’s Sebastian Yanasa who was leading an awareness group around the island this week about their reinstatement told the Londolovit community yesterday, Jan 23, that “they didn’t do anything wrong” and was therefore reinstated by the Court.

They were seeking community reps in the ‘court reinstated’ LMALA board to fulfil the requirements for an Annual General Meeting (AGM) planned for an unspecific time. 

The Investment Promotion Authority (IPA) had suspended LMALA executives on June 19, 2017 allegedly for mismanagement and tax evasion following a 2015 business audit report. It is not clear who sanctioned the business audit of LMALA at that time however reports were that IPA and Newcrest were behind it. 

An interim LMALA board installed by IPA had paid K180,000 in taxes recently. But the suspended LMALA board and executives have taken IPA to court and also sought orders preventing the interim LMALA board to operate. 

But Mr. Yanasa and his team fell short to provide a “black and white” copy of the Court decision that reinstated them when cornered by the Londolovit community through its Londolovit Sagomana Association (LSA) chairlady, Ms. Roselyne Arau.

“We (Londolovit) remain Thomas, we are not convinced until you prove it to us with a black and white copy of the Court decision,” Ms. Arau said. 

Other board members of the water resource owner’s LSA; Willie Liomso, Nick Kopruh and Robin Wesparo all had expressed dislike for the return of the “old executives” to manage the operations of the LMALA once again claiming that LMALA under their stewardships “had ignored and neglected the water issues of the Londolovit people for over 20 years”.

Ms. Arau closed further discussions with the visiting LMALA team until they provide: a true copy of the court decision that reinstated them, a copy of the business audit report which will identify where Londolovit’s benefits under tenements ME 73 and LMP 34 have been going to since 1995 (if any), clarity to the mine impacted communities on which leadership to trust and follow between the IPA installed and Court reinstated LMALA executives and board. 

Meanwhile, there was so much anxiety among landowner groups under the 14 tenements of the Lihir project. 

Landowners have accused Newcrest of taking advantage of the “absence” of LMALA - the umbrella body that cover the interest of all LO groups under the mine’s 14 tenements to bulldoze its new “proposed terms” (agreements) using the LAR (Lihir Agreement Review) process which is ongoing at the time of print. 

They described the new proposed terms as “dangerous and frightening” as it will supersede all original agreements and related benefits sealed in 1995 when the mine first started operations (first gold exported from Lihir in 1997). 

The “new proposed terms” – among others - seek to:
- avoid umbrella structure of LMALA;
- put in place “direct relationship” with tenement holders (LO’s);
- establish a new “Foundation” in place of LMALA to “ensure effective operational governance, discipline, and accountability” of all parties;
- remove the current 5 year cycle of review, agreements under the new “proposed terms” will now extend to the entire “life of the operation” of the Lihir gold mine; and
- others. 

“This is the frightening part; new “agreements will be for the life of the operation”. Meaning this LAR is the last to be signed, there shall be no more reviews during entire life of the mine. 

This has raised fear and so much anxiety among all landowner parties. We are cautious and not ready to put pen to paper as yet,” LSA’s Roselyne Arau said. 

She appealed to Lihirians to be wary of Newcrest’s “divide and rule” techniques that is already creating infighting among LO groups “while it is continuously extracting our water and gold behind our backs”.