Multi national gold miner, Allied Gold, has rejected reports that tailings from its Simberi Island mine in New Ireland province in Papua New Guinea have killed fish in the area.
Local officials say that marine animals, including dugongs and turtles, have died while the people are reporting itchiness if they use the sea water to bathe.
They also reported that the sea in the area where the tailings are discharged was discoloured.
But the miner's public relations office in Melbourne dismisses the claim.
It says the mine hasn't been processing ore while repairs are completed on an onshore tailings mixing tank.
The office says this work should be completed today.