REX - Regional Express

OUTThere Magazine l July 2013

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overseas&underground All that glitters Civil unrest, environmental issues, land rights, labour and skills shortages, remote access, weather and even sexual abuse – arguably, Papua New Guinea's mining industry is plagued by more troubles than anywhere else on earth. words: Christine Retschlag P apua New Guinea may be among Australia's closest neighbours but the nations' mining industries couldn't be more different. Sure, Aussie mining companies must contend with issues relating to the environment, weather, land rights, and shortages of labour and skills – but to a far lesser extent than those extracting minerals from PNG's challenging terrain. And that's before you even begin to talk about civil unrest or allegations of abuse. Like the country itself, mining in PNG has always been a bit of a mystery. Indeed, until 1970, there wasn't much of an industry at all. That's all changed and now, the minerals sector is the dominant force in the developing nation's economy. But though there's plenty of talk of coal in Australia, there's little of it in PNG. Up there in the tropics, it's predominantly gold and copper, with a smattering of silver, cobalt and nickel. That's not to say Australian mining companies have nothing to do with their northern neighbour; BHP Billiton and Rio Tinto have both been heavily involved with major projects in PNG. Until last year, when it divested itself of its holding, BHP Billiton was a major shareholder in the massive Ok Tedi Mine at Mount Fubilan in western PNG, owning 52 per cent. The mine, a largescale producer of copper concentrate and gold in the Star Mountains near the Indonesian border, is now fully owned by local interests. It employs around 2,000 people, 95 per cent of whom are PNG nationals, and its ore output accounts for around a third of the country's total export earnings. Australian mining giant Rio Tinto owns 54 per cent of another major project, the Panguna Mine on Bougainville Island, but this project is not without its issues. The company was forced to close the copper and gold mine in 1989 due to civil unrest and it has not opened since. One of the first major mining investments in PNG, it was one of the world's largest copper-gold mines at one stage. A recent report by the London Mining Network noted that citizens involved in the military conflict that ravaged their island have made murmurings about re-opening, a move backed by Rio Tinto 37

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