Mendi-Kandep Road Construction ends @ a Cost of K166m

K166m road work ends

Source:The National, Friday July 31st, 2015

THREE years of work on the K166 million 50km Mendi-Kandep Road linking Enga and Southern Highlands have come to an end.
The road, through rugged and mountainous terrain was completed by Chinese contractor COVEC (PNG) last week under Asian Development Bank funding. An official opening date is yet to be confirmed.
Leaders such as Works Minister Francis Awesa and Kandep MP and former treasurer Don Polye had been pushing hard for this project since 2012.
COVEC (PNG) acting general manager and project manager Tony Liu said it was the first time for a  direct road connection between Southern Highlands and Enga.
“I’m very, very happy that this road has been completed on time,” he said.
“We built this road to a very high quality and the local people will benefit.”
Liu commended the local people for their understanding and help, the Government, sub-contractors, and landowners.
“This is teamwork, not only one party could have completed this road,” he said.
“We will continue to maintain the road and we look forward to more opportunities to contribute towards the development of this country.”

More Photos of the Current Mendi-Kandep Road in the Photo Gallery on this blog; Refer LINK HERE!

Kavo allowed to sit in Parliament

Source:The National, Friday July 31st, 2015

 Reports by MALUM NALU
SPEAKER Theodore Zurenuoc says jailed Gulf Governor Havila Kavo is allowed to sit in Parliament.
He said he would not allow any more debate on it following questions from deputy Opposition leader Sam Basil about the “convicted Gulf prisoner having access to this Parliament”.
Zurenuoc said: “You need to go and seek legal advice on that. It’s obvious that he has been charged under the Leadership Code. It does not affect his sitting in the chamber, I’m sorry.”
East Sepik Governor Sir Michael Somare complained about Kavo being allowed to enter Parliament.
“He is already convicted, it is a criminal case. So how can you allow him in?” he said.
Zurenuoc said leaders facing a leadership tribunal were different from those charged under the Criminal Code.
“It’s beyond the control of this House to deal with the Gulf governor. But in the case of Honourable Members before leadership tribunals, there is a different set of laws,” Zurenoc said.
“It’s obviously very clear, there’s no point for us to argue on this one. I will not entertain any more, I made a ruling.”

Ban Sees Positive Outcomes

Source:The National, Friday July 31st, 2015

INDICATIONS are clear that banning tulait-tulait buses from the Highlands Highway will reduce road accidents noticeably, a senior police officer said.
Chimbu provincial police commander Albert Beli said yesterday that Chimbu normally recorded one or two road accidents involving the night buses in a fortnight.
But the trend has stopped over the first fortnight of the ban, he said.
Beli said it was too early to make a fair assessment but from the way things were going, the ban indicated positive outcomes.
“The passengers are happy that the drivers were stopped and told to have a proper sleep on the roadside before travelling the next day,” Beli said.
“The checkpoint communities are helpful by helping police and the travellers.
“The compulsory roadblocks will continue until such time that we see no tulait-tulait vehicles,” he said.
He said the body of a woman killed in a road accident two weeks ago is still at the Goroka Hospital.
The woman was a passenger in a tulait-tulait bus travelling from the coast up to the Highlands when the bus ran off the road

Writing was on wall for Ok Tedi mine

Source:The National, Thursday July 30th, 2015

JUST over 18 months after Prime Minister Peter O’Neill announced the 100% takeover and ownership of the giant ok Tedi mine by the PNG Government, OTML announces a temporary shutdown of operations.
One wonders whether the environment and the market conditions really had anything to do with this temporary closure.
We are told that more than 300 national employees will be made redundant. Another 1, 500 will be stood-down and more than 5, 000 contractor employees will either be stood down or also made redundant. This exercise affects more than 6,800 employees involved in the Ok Tedi mine.
Within the corridors of OTML headquarters, in the work places, streets and outskirts of Tabubil, it is too common a story that there are chronic underlying issues then the so called “dry weather” and “low metal prices” window dresser pictures being painted to the rest of the country.
Its roots go back to the Government’s takeover of the mine from. Through poor strategic planning, imprudent and mismanagement of OTML, the once great company was laid bare for the taking.
The signs were already there by early fourth quarter 2014 - Ok Tedi was struggling to keep afloat.
At the changing of the guards in December 2014 the company barely survived. The signs were there again in March 2015.
Through prudent management by a new national executive the reserves obtained were able to get Ok Tedi through to June and July of 2015.
At the questionable changing of the guards again by the government in May 2015, it was only a matter of time before things fell apart-this time for the worst. The dry weather was the perfect excuse. Now the results are evident.
It is quite disturbing recalling the events of the past 24 months, under the previous senior management’s leadership:
How decisions were made and approved to finance so-called Mine Life Extension projects like: the Parker donggas, the Rubber Crumb Plant, the Crusher and Batch Plant, the Motor Rewind Shop, the country club construction, the DIWAI Hospital accommodation and teaching facilities project, the major company redundancy and restructure of 2014, and the ensuing overhaul of work roster change to name a few. I wish I had more space to put the data and figures down to show the startling costs of these projects compared to the actual benefits they have brought in for Ok Tedi while violating its own project management processes which would have prevented such fall outs.
These major spending on so-called Mine Life Extension Projects were not for the Ok Tedi Mill Operations and Mine Production, the business units which make money for Ok Tedi.
These major capital investments had no direct benefits to Ok Tedi at all. Yet they accounted for about 40% of the capital expenditure budget in 2013 and 2014. What a blunder.
These projects never had any known proper formal technical feasibility study done to ascertain their viability and benefits through competent technical and economic evaluations.
If they were done, certainly there was no technical capacity to evaluate them as the Engineering Services Department, the technical brain of this project, was already dissolved by the OTML Management on the eve of these projects.
Looking back, one thinks whether hard earned revenue was strategically squandered on these major projects since they have had no practical benefit to the company.
It is startling to imagine how the OTML board and the PNG Government scrutinised these projects and major company changes.
Was the Government ill advised? Did the government lack the competence to ask the right questions? Did the government consult the technical details of these projects? If so, were these details reliable?
One thing is for sure, there is nothing to show for the benefits of most of these projects just 24 months on.
The then senior executives and cohorts brought in their cronies who restructured the company to lure in more of their kind and siphon out money from OTML and PNG causing many job losses to PNG nationals during the major company redundancy in 2013.
The 2013 workforce strike was to prevent the redundancy exercise and major company changes because this was foreseen. Neither the government nor the land owner leaders were able to see this coming!
Even though the Prime Minister was given ample evidence and plea by OTML employees, on his visit to Tabubil during the 2013 strike, this far cry fell on deaf ears. No job loss was promised. It is sad to say that this never eventuated.
The company was restructured. Many employees lost their jobs. Systemic Failure commenced. Ok Tedi was set up for this fall.
It is frightening to think that this happened right under the nose of the Government and the local land owner leaders - people who were mandated and entrusted with to look after the national interests of simple people.
Now, after 18 months, the results of that day speak for themselves. And not only the remaining employees of that day but the local community, Western province and PNG will now bear the brunt of the lack of leadership.
Whether the Government then was acting on poor advice or decided to ignore caution. The damage is done.
OTML, once immune to external market forces, environmental conditions and political interference, is suddenly susceptible to “dry weather” and “low metal prices” condition, not to mention the lower than normal quality of gold and copper it is now producing.
Only the OTML management and the PNG Government know the primary reasons why the mine is now going into this shutdown mode.

Abib Maan
Tabubil, Western
______________________________________________________________
Related News Link
Polye Upset Over Ok Tedi Mine Closure
Ok Tedi PNG Copper Mine output stalled by low river level
Papua New Guinea's Ok Tedi Mine Suspends Production, Stands down workforce 
Opposition Leader Upset over Ok Tedi's Move
 

Rainful to be less than normal as El Nino sets in

Source: The National, Thursday July 30th, 2015

RAINFALL will be far less than normal this year as the effects of El Nino set in, the National Weather Service Office has predicted.
Such conditions can lead to serious drought, the office said.
“El Niño events are not due to climate change. They are natural climate variability events, which tend to occur every three to seven years,” it said.
The 1997-98 El Niño was declared by climate scientists as the “El Niño of the century” but the current one could supersede that due to the nature and the timing of its development, the office said.
“El Niño events are global climate events with different degrees of impacts across the country. For Papua New Guinea, the most affected provinces are Central, Western and parts of the Highlands and Mamose.
“Kiunga and Balimo in Western are two of the towns that are adversely affected.”
Climate and Special Services assistant director Kasis Inape said: “According to the chart, Figure 1 shows the rainfall distribution for Kiunga during the three different periods.
“The blue curve represents the average rainfall during the year while the red and green curves show the rainfall patterns during the 1997-98 and the 2015 El Niño years respectively.
“It is easy to note from the figure that rainfall is seriously reduced during the El Niño years.”
Inape said the Fly River was the operational lifeline of Ok Tedi. “During the El Niño phenomena, the rainfall is seriously reduced making the water levels drop sharply, making it very difficult for the transportation of iron ore and other minerals for export to be barged down the Fly River.
“From Figure 1, the June rainfall for Kiunga is already 50 per cent less than the average and the forecast is that this dryness will continue for the next four-six months, even longer.
“This is consistent with the current understanding that once an El Niño is declared, it will last for more than 10 or more months before it finally dissipates.
“Table 1 shows the progression of drought in Kiunga during the 1997-98 El Niño event. Drought warning was issued in January 1997 and the drought actually started in April 1997 and reached its peak in September before dissipating in May 1998.
“We are expecting this scenario for this year’s El Niño.”
Inape said: “We are now in a much better position than when we were in 1997-98 as far as our understanding of El Niño is concerned so we are providing forecast with some level of confidence and certainty.
“El Niño events are slow-moving phenomena and therefore, gives us ample time to prepare for the adverse effects associated with them such as drought and frost.”

PM: Mine shutdown a cost-cutting measure

Source: The National, Thursday July 30th, 2015

PRIME Minister Peter O’Neill says Ok Tedi Mining Ltd’s temporary shutdown is part of necessary cost-cutting measures to address the fall in global prices of copper and ore.
He said it had significantly affected the revenue of OTML.
“Last week, I met with chairman Sir Moi Avei and managing director Peter Graham in relation to this particular matter,” he said.
He said the temporary shutdown of the mine was caused by not being able to export copper because of the inability to transport ore out on the Fly River because of the dry weather.
“As a result, there are no ships going in and out of Ok Tedi, not able to bring food supplies and fuels to keep the power generation and other services going on in mine,” he said.
“This is affecting the ability of the company to maintain services and of course, communities and families in Tabubil. It is a temporary shutdown and they are going to put the mine into care and maintenance.”
He said the company, meanwhile, will “repair some of the assets and machineries, which have been outstanding for quite some time”.
Some local and expatriate employees have been sent home following the company’s announcement last Friday of the temporary shutdown

 

Miner to keep more locals

Source:The National, Thursday July 30th, 2015

 PRIME Minister Peter O’Neill says the Ok Tedi Mining Ltd will keep more local workers to continue working at the mine.
“And those who are not needed will be repatriated back to their destinations until when the river levels come back to normal,” he said.
Telefomin MP Solan Mirisim had asked the Government to send a team to Tabubil to investigate why the OTML management was using the dry weather and low metal prices as an excuse to carry out a massive retrenchment, redundancy and lay-off exercise.
“Employees and their families, contractors and the people of Western, including surrounding areas are currently shocked at the short notice of the temporary shutdown from the management last Friday,” he said.
Mirisim said the notice was effective from Monday.
 

New road to help ore transport

Source:The National, Thursday July 30th, 2015

PRIME Minister Peter O’Neill says a new access road is being built to solve the problem of transporting ore by river at Tabubil, Western, for Ok Tedi Mining Ltd.
“The Government is building a new access road to Aiambak that has much higher level of access in terms of the water levels,” he said.
“Larger boats can take food, fuels and medicine supplies through that area. We will use the new access road in the future to bring ore out of the mine and of course, continue the mine to have a long-term sustainable operation.”
Telefomin MP Solan Mirisim had asked whether the Government had in place a long-term solution to assist OTML. He suggested that the Government build other ports somewhere in Lake Murray or Aiambak or have a road link to the mine

Polye admitted with malaria

Source:The National, Wednesday July 29th, 2015

OPPOSITION leader Don Polye is in Cairns, Australia, seeking treatment for malaria.
A spokesman for the Kandep MP told The National last night that Polye was admitted at the Port Moresby General Hospital last week with malaria.
He did not attend Parliament last week because of it.
He said Polye was medically evacuated to a Cairns hospital last weekend for treatment and was now recovering.
He said Polye was expected back in Parliament this week

Mine faces closure

Source: The National, Tuesday July 28th, 2015

By SHEILA MALKEN

 

Managing director and chief executive officer Peter Graham in a memorandum to staff last Friday said the company was taking the step to “address the urgent need to improve our financial performance to ensure long term-term business viability in a low-price environment, and our response to the immediate impacts of dry weather”.
He said copper and gold prices “are at the lowest point for many years”.
“The recent failure of the chasm which has prevented access to higher grade ore has compounded the situation,” Graham said.
He said the dry weather had placed further stress on the company, “preventing shipment of copper concentrate and the generation of revenue, and the limited re-supply of critical stocks of diesel and food”.
The company expects the dry weather to continue for around six months, similar to that experienced in 1997/98 when operations were shut down.
The number of expatriates will be reduced by 30 per cent and nationals by 15 per cent, with some work performed by OTML “may be outsourced”.
“We must prepare for a temporary and orderly shutdown of operations over the next week or so.
“We will continue operations for as long as we can, but the time horizon is short,” he said.
The company has been the largest employer in Western for over 32 years. It did not say yesterday how many workers it had but the 2013 figure indicated it employed 2310 people and 5147 contractors. Most (95 per cent) are PNG nationals and 37.3 per cent from Western.
More than 2000 students attend the three schools in the mining lease area – Diwai International, Tabubil Secondary and Tabubil Primary.
Diwai International School will be closed on Friday.
Principal Kevin McCrae told The National that they were following the information on Graham’s memorandum. The school has 260 students.
“We have only two classes in Grade 9. The Grade 8 students will need to transfer to other schools so that they can sit for the national exam,” he said.
“All students at Diwai International have been given certificates to help them enrol elsewhere. Currently the class is running as normal, but we understand most people will be leaving town next week.
“It is

 

obviously a traumatic experience for students, teachers and parents.
“We are working to make the school closure as smooth and unsettling as possible.”
Tabubil Secondary School has about 1000 students and 29 teachers.
Tabubil Primary School head teacher, identified only as Mrs Na’awi, said she would comment on the situation later this week.
A teacher in Kiunga said four schools which depended on the shipments of fuel from OK Tedi might be forced to close down too.
They are St Gabriel Technical Secondary, Kiunga Secondary, Ningrum High School and Aiambak High School.
The company in a statement said it was coordinating with the Western provincial administration on emergency response planning.
“OTML management is focused on sensitively handling the changes that will impact the workforce and communities and ensuring the mine is positioned for an efficient restart when weather conditions allow, and for long-term business viability.”

 

OK Tedi Mining Limited is preparing for a temporary shutdown of its operations because of the “very challenging business environment” it is facing and the impact of the dry weather. Most employees are to be sent home, and more than 2000 children have been advised to find other schools outside its area of operation in Tabubil, Western.  

Shutdown will hurt

Source:The National, Tuesday July 28th, 2015

THE temporary shutdown of operations announced by Ok Tedi Mining Ltd will affect it, the Ok Tedi Development Foundation says.
OTML yesterday announced a “temporary shutdown” of its operations.
In a statement, the State-owned open-pit copper, gold and silver mining company said the shutdown would be temporary and the
company would continue operations while critical supplies allowed.
The company said the situation resulted from the dry weather that was already significantly impacting it operations.
“River traffic on the Fly River into and out Ok Tedi’s main river port at Kiunga has been unreliable for some weeks due to low water levels,” it said.
“Diesel stocks for power generation and mining operations cannot be sustained, and replenishment of food stocks is affected.
“Transport of copper concentrate product to Port Moresby for on-shipment has been unreliable, creating uncertainty with regard to cash inflows necessary to sustain operation.
“Further the low river flow impacts operation of the Ok Menga power station, which is the main source of power for Tabubil and the OTML operations.
“As a result power rationing has commenced in Tabubil and Kiunga,” OTML said. When contacted yesterday, foundation media and communications officer Domininc Krau confirmed certain operational restrictions had been put in place for the foundation.
“Yes this affects OTDF in that certain operational restrictions have been put in place by chief executive officer Ian Middleton,” it said.
“Of note are restrictions on light vehicle usage and fuel/petrol usage and that all consultants and contractors engaged by OTDF are to leave the site.
“As for reduction of employee numbers at OTDF, there will be a reduction, however this will be planned in accordance with an organisation restructure.
“Further restrictions will depend on the weather, commodity prices and OTML management decisions however, we will continue to maintain contact with our CMCA community partners.”
The foundation manages community development benefits from Ok Tedi mine operations on behalf of the 100,000 river residents living in 156 villages throughout Western.

PNG Hunters Shot Down Black Hawks Again.

Shot down again

Source:The National, Monday July 27th, 2015

THE Papua New Guinea Hunters held out a star-studded Townsville Blackhawks side 28-26 in Kokopo yesterday.
The win saw the SP-sponsored side join the Queensland Cup leaders, the Blackhawks on 33 points with the latter keeping their position at the top of the table courtesy of a superior points differential.
Townsville coach Kristian Woolf was not taking any chances for the Round 20 encounter, naming a side peppered with National Rugby League players.
Robert Lui, Ray Thompson, Glenn Hall, Ricky Thorby, Kyle Feldt, Tom Humble, Anthony Mitchell and Neville Costigan all played in the NRL and their inclusion boosted the visitors’ ranks.
Despite running their best team out on Kalabond Oval in front of an estimated 5000 fans, the Neville Costigan-led side found themselves trailing 18-12 at the break with the Hunters having opened the scoring through centre Noel Zeming, pictured, in the 5th minute.
Zeming added a penalty while Hunters captain Israel Eliab had a bout of dejavu scoring his side’s second try, a 95m effort off a Lui grubber that was blocked and picked up by the No.6 who ran the length of the field much like he did in their Round 11 match at the Jack Manski Oval won by the PNG side 22-16.
At 12-0 the Hunters left a gaping hole on their line for Costigan to stroll over for the Blackhawks to register their first points of the match in the 19th minute. The visitors’ class came through again not long after with a set spanning the length of the field ending with backrower Kelepi Tanginoa carrying several defenders over the line in an amazing 20m surge.
Centre Feldt, who had kicked an earlier conversion, slotted the extras to draw level at 12-12.
Hunters’ impressive fullback Stargroth Amean replicated Tanginao’s heroics with his own twisting effort close to the line for the Hunters to grab the lead, 18-12, in the 36th minute which they kept at halftime.
The Hunters were the first to score in the second 40 through halfback Ase Boas who sliced through for a well-worked four-pointer as the home side took a 24-12 lead.
The No.7 was later helped off the field with a left ankle injury and replacement Atte Bina Wabo slotted in seamlessly providing an angled grubber close to the line for winger Adex Wera to scoop up and score in the corner to put the lead to 28-12 in the 51st minute.
The inevitable fight back started as half Michael Parker-Walshe and winger Zac Santo got tries in the space of six minutes for the Blackhawks to cut the deficit to eight points at 28-20 with a quarter of the match left to go.
The visitors’ intensity lifted noticeably during this period but the pressure was also on them as handling errors and poor execution stymied both sides.
Tanginao bagged his second try in the 71st minute with another effort close to the line and with the margin now just two points the crowd was kept on the edge of their seats as both sides fought to score the match-winner.
In the end the a knock on by Feldt with 39 seconds left on the clock and the Blackhawks only metres away from the chalk epitomised the closeness of the contest.

Electricians question experience of casuals

Source:The National, Wednesday July 22nd, 2015

FOUR private electrical contractors operating in Enga are concerned about the casual labourers engaged by the PNG Power Limited in Wabag to do electrical work.
The certified electrical contractors are Wantok Electrical, Jet, Waile and Ben Dan Electrical.
They have called on the PNG Power management in Port Moresby to send inspectors to check the qualifications of the casuals.
Ben Dan of Ben Dan Electrical said only certified and trained electricians should be allowed to do electrical work.
“In Enga, we see youths from the village that do not go to school driving around in PNG Power marked vehicle and doing electrical work,” he said. He said the risk of these casuals being electrocuted or making wrong connections could cause accidents.
Dan said there were safety measures and procedures which all certified linesmen, inspectors and private electrical contractors must follow.
On June 11, he said a 21-year-old from Teremanda village in Wabag nearly got killed after he was engaged by PNG Power to fix a faulty line at St Paul’s Pausa Secondary School in Wapenamanda.
Dan said for public safety, people must only engage certified electricians.
The PNG Power manager in the province was away in Port Moresby last week and could not be reached for comment.

Mt;Giluwe; second highest peak; now a major tourist attraction

Source:The National, Wednesday June 10th, 2015

MT Giluwe, the second highest mountain in the country, is becoming a major tourist attraction.
Mt Giluwe, located 3842 metres above sea level at the border of Western Highlands and Southern Highlands, offers tourists programmes such as bird watching, trekking, flora and fauna.
This is complemented by cultural activities like feasting, traditional singsing, and bride price payment ceremonies.
Edward Tama, manager of Eco-Tourism Service from Tambul-Nelbilyer district said he received tourists from Japan, Australia, Russia and America in January, May and August every year.
Tour operators such as Country Tours, Pacific International, Western Highlands Culture and Tourism Authority, TNT Tours, and Paiye Tours bring in tourists in groups to climb Mt Giluwe. He said the formation of the Eco-Tourism Service in 2002 was an initiative of local people.
Tama said the people built a guest house at the base camp at Malke village where tourists stayed overnight before climbing to the summit. Many of the tourists stayed for up to five days in the village.
It creates opportunities for locals in Lower and Upper Kagul to become porters and guides.
Tama said locals respected the environment, sacred sites and had banned any forms of hunting.

K10m to Light up District

Source:The National, Wednesday July 8th, 2015

KANDEP MP Don Polye plans to spend K10 million to light up the district in Enga.
Polye revealed that when presenting the district’s services improvement programme report to the Department of Rural Implementation.
He said officials from a consultancy company were sent to Kandep last Friday to do a feasibility study.
On the completion of the study, the Yonki power grid will be pulled along the Kandep-Mendi Highway from Southern Highlands to the district.
“The project will raise the profile of the district as there are many projects nearing completion or under construction like the Kandep-Laiagam/Porgera Road, police barracks and rural hospital,” Polye said,
“We are still waiting for the implementation of an overdue electricity project generated by Hides gas which was announced by the past government but to date nothing tangible has taken place.
“The gas project was to cover the entire Highlands region but it has been delayed.”
Meanwhile, Polye said the people of Hela and Kandep had been deprived of the only road access by the Government when K39 million allocated for the proposed bridge to link Hela and Enga was diverted to other projects outside the district

Women Petition Hospital Management

Source: The National, Wednesday July 15th, 2015

WOMEN’S groups in Porgera, Enga, are calling on the Government to take over the Porgera Hospital which is operating as a private institution.
More than 3000 members of the 12 women’s groups in Porgera-Paiala last month petitioned the Department of Health to look into the future of the hospital when the Porgera mine ends its operation.
The women are members of the district council of women, special mining lease-affected women association, Paiala-Hewa Women Association, Mt Kare Women Association, Porgera Red Wara Women Association, Public Servants Women Association, Porgera Urban Women Association and SDA Women Association.
They claimed that because of no funding from the Porgera Development Authority, the hospital management and directors had decided to reduce its operation.
Porgera District Women Association president Maria Kensary said the women’s groups were united and wanted the Government to respond to their petition. “This is the only major service we have,” she said.
“We want this to become a public hospital as we are concerned about the people of Porgera.”
PDA director Opis Yandapake said the hospital was established under the Porgera mine agreement but there was no source of funding.
Yandapake said the authority had been using its Special Support Grant and Mining Agreement funds from the Government to fund the hospital in the past 25 years.