17 Jan 2008

Billion dollar Chinese nickel mine project in Papua New Guinea has come under fire

12:11 pm on 17 January 2008

A billion dollar Chinese nickel mine project in Papua New Guinea has come under fire over plans to dump slurry waste into Astrolabe Bay, situated off the northern coast of Madang Province.

The former PNG health minister Sir Peter Barter has now called for an independent environmental impact study.

Sir Peter Barter says it was suspicious, as the mine's Australian shareholder Highlands Pacific, with less than a 10-percent share in the project, partially funded the initial environmental report giving the mine the go ahead.

The study facilitated PNG's 1-point-2 billion US dollar agreement with China's state-owned company Metallurgical Group Corporation to build the Ramu Nickel mine.

PNG's Lutheran Churches Head Bishop Dr Wesley Kigasung also criticised the project saying that up to 80,000 people depend on the sea for their livelihood.

Sir Peter Barter says the Prime Minister had failed to consult with him before the mine was given the go-ahead in March 2005.

Highlands Pacific currently has an 8-point-5 per cent share in the project, with the option to increase to 20-per cent.

The controversial Ramu mine is expected to yield 143 million tonnes of nickel over 20-years and during construction will employ 3,000 workers - including 700 Chinese.