Patrick Matbob
Madang
Madang
18 8 2009
Ramu Nickel project blunders on
The world class Ramu Nickel project in PNG has again been ordered to stop operations temporarily last month because of failure to meet the required safety standards.
This time the PNG Mineral Resources Authority ordered all work on the project sites to cease until all safety issues were adequately rectified.
The order to stop work came after an accident at the Basamuk Refinery site in May that left a national worker with permanent injuries. The accident sparked a riot by fellow workers that resulted in injuries to a number of Chinese and PNG workers and damage to property and plant equipment on site.
An inspection carried out on site by MRA Chief Inspector of Mines Mohan Singh after the riot raised concerns about lack of safety measures being observed by the company contracted to develop the project.
A Ramu Nickel Management initial submission to MRA about the rectification measures they were taking to improve safety and health standards at the work site did not satisfy Mr Singh. He told The National newspaper last month: “Upon review, I was not fully satisfied with the amount of rectification work done, and required the company to complete rectification in all critical areas before I could consider their request for resumption of operations.”
The operations of the US$800 million project resumed last month after MRA was satisfied that MCC had fully rectified the critical defects on health and safety grounds in compliance with the Mine (Safety) Act 1977.
Mr Singh said however that strict regulatory conditions as stated in a letter to the company on August 15 will be applied.
“The Inspectorate aims to keep a constant vigil on the company to ensure compliance of its instructions and help the company discharge its statutory obligations,” he said.
MRA inspectors have been visiting Kurumbukari and Basamuk refinery sites to verify compliance of the critical items listed in the statutory order of July 21.
No details were released of the critical issues which MRA had sought rectification.
The project has been dogged by controversies since work began following a state to state agreement between PNG and China. Prime Minister Somare invited the Chinese to develop the project following an election promise in 2002 to the people of the area who had been waiting for some years for a developer.
From the start, MCC’s approach to developing the project had been unlike the other western mining companies that have been operating in PNG. MCC is employing a large expatriate Chinese workforce on the projects sites claiming that it needs special skills that are not available locally. On the other hand, experienced PNG mining operators are claiming that Chinese workers are involved in work that Papua New Guineans can do.
In 2007 the department of Labor and Industrial Relations threatened to close down the project after the project developers were found to have breached PNG’s labor and industrial laws. An inspection by the Department Secretary David Tibu following widespread complaints by workers, discovered that company was breaking the law by having no proper wage structure for national workers, issuing rations of tin fish and rice in lieu of over time pay, accommodating national workers in makeshift tents, not providing ablution facilities and medical services on site for workers, and workers were not appropriately attired.
In a list of recommendations, Secretary Tibu directed ENFI to comply with relevant labor laws and pay workers according to their qualifications, ensure that all personnel are issued and attired with correct industrial gear, develop a health safety and working environment policy, appoint a permanent health, safety and environment officer and build ablution facilities in staff quarters.
Another issue had been the employment of Chinese workers who breached the labour and immigration laws and had no proper visas and work permits. The workers were arrested in a special government operation only to be freed by a magisterial court.
Chief Magistrate John Numapo found that the workers were brought into the country to work under a government to government agreement between PNG and China. A court official said there was an understanding that the Chinese workers were allowed into the country to work on tourist and business visas while their proper work permits and visas were processed over a period of six or seven months.
Early this year, national workers at the Kurumbukari mine site went on strike for two weeks protesting poor working conditions, poor wage rates and lack of medical and other benefits. Other issues included failure by the MCC to relocate displaced people from the mine site and build accommodation for them. Intervention by Madang provincial Governor Sir Arnold Amet enabled work to resume while MCC promised to address the outstanding issues.
Landowners at the project site also have outstanding land ownership disputes that have remained unresolved for years. The national government’s attempt to address the issue this year has been stalled following the death of the commissioner appointed to hear the disputes.
Another major problem that the national government and the community in Madang is being confronted with is the mine’s plan to dispose waste into the ocean outside of Madang. The plan is being opposed by PNG Fisheries Ministry Ben Semri and developers of the Pacific Marine Industrial Zone who are targeting the lucrative European Union markets for PNG’s tuna and fishery products. They believe that MCC’s marine tailings disposal plan is likely to jeopardize the PNG government plans to export to EU markets.
Despite the problems, Ramu Nickel is determined to commence production next year.
Ramu Nickel project blunders on
The world class Ramu Nickel project in PNG has again been ordered to stop operations temporarily last month because of failure to meet the required safety standards.
This time the PNG Mineral Resources Authority ordered all work on the project sites to cease until all safety issues were adequately rectified.
The order to stop work came after an accident at the Basamuk Refinery site in May that left a national worker with permanent injuries. The accident sparked a riot by fellow workers that resulted in injuries to a number of Chinese and PNG workers and damage to property and plant equipment on site.
An inspection carried out on site by MRA Chief Inspector of Mines Mohan Singh after the riot raised concerns about lack of safety measures being observed by the company contracted to develop the project.
A Ramu Nickel Management initial submission to MRA about the rectification measures they were taking to improve safety and health standards at the work site did not satisfy Mr Singh. He told The National newspaper last month: “Upon review, I was not fully satisfied with the amount of rectification work done, and required the company to complete rectification in all critical areas before I could consider their request for resumption of operations.”
The operations of the US$800 million project resumed last month after MRA was satisfied that MCC had fully rectified the critical defects on health and safety grounds in compliance with the Mine (Safety) Act 1977.
Mr Singh said however that strict regulatory conditions as stated in a letter to the company on August 15 will be applied.
“The Inspectorate aims to keep a constant vigil on the company to ensure compliance of its instructions and help the company discharge its statutory obligations,” he said.
MRA inspectors have been visiting Kurumbukari and Basamuk refinery sites to verify compliance of the critical items listed in the statutory order of July 21.
No details were released of the critical issues which MRA had sought rectification.
The project has been dogged by controversies since work began following a state to state agreement between PNG and China. Prime Minister Somare invited the Chinese to develop the project following an election promise in 2002 to the people of the area who had been waiting for some years for a developer.
From the start, MCC’s approach to developing the project had been unlike the other western mining companies that have been operating in PNG. MCC is employing a large expatriate Chinese workforce on the projects sites claiming that it needs special skills that are not available locally. On the other hand, experienced PNG mining operators are claiming that Chinese workers are involved in work that Papua New Guineans can do.
In 2007 the department of Labor and Industrial Relations threatened to close down the project after the project developers were found to have breached PNG’s labor and industrial laws. An inspection by the Department Secretary David Tibu following widespread complaints by workers, discovered that company was breaking the law by having no proper wage structure for national workers, issuing rations of tin fish and rice in lieu of over time pay, accommodating national workers in makeshift tents, not providing ablution facilities and medical services on site for workers, and workers were not appropriately attired.
In a list of recommendations, Secretary Tibu directed ENFI to comply with relevant labor laws and pay workers according to their qualifications, ensure that all personnel are issued and attired with correct industrial gear, develop a health safety and working environment policy, appoint a permanent health, safety and environment officer and build ablution facilities in staff quarters.
Another issue had been the employment of Chinese workers who breached the labour and immigration laws and had no proper visas and work permits. The workers were arrested in a special government operation only to be freed by a magisterial court.
Chief Magistrate John Numapo found that the workers were brought into the country to work under a government to government agreement between PNG and China. A court official said there was an understanding that the Chinese workers were allowed into the country to work on tourist and business visas while their proper work permits and visas were processed over a period of six or seven months.
Early this year, national workers at the Kurumbukari mine site went on strike for two weeks protesting poor working conditions, poor wage rates and lack of medical and other benefits. Other issues included failure by the MCC to relocate displaced people from the mine site and build accommodation for them. Intervention by Madang provincial Governor Sir Arnold Amet enabled work to resume while MCC promised to address the outstanding issues.
Landowners at the project site also have outstanding land ownership disputes that have remained unresolved for years. The national government’s attempt to address the issue this year has been stalled following the death of the commissioner appointed to hear the disputes.
Another major problem that the national government and the community in Madang is being confronted with is the mine’s plan to dispose waste into the ocean outside of Madang. The plan is being opposed by PNG Fisheries Ministry Ben Semri and developers of the Pacific Marine Industrial Zone who are targeting the lucrative European Union markets for PNG’s tuna and fishery products. They believe that MCC’s marine tailings disposal plan is likely to jeopardize the PNG government plans to export to EU markets.
Despite the problems, Ramu Nickel is determined to commence production next year.
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