Landowners on PNG's Lihir seek compensation for water usage

3:47 pm on 14 January 2019

Landowners on Papua New Guinea's Lihir island want compensation for a mining company's use of water from Londolovit river.

The weir (dam) at Londolovit river where Lihir Gold (Newcrest Mining Limited) extracts water for its local mine operations.

The weir (dam) at Londolovit river where Lihir Gold (Newcrest Mining Limited) extracts water for its local mine operations. Photo: Cyril Gare

The Londolovit Sagomana Association accuses the owner of the Lihir gold mine of stealing water through a dam where the miner extracts water for its operations.

Operators of the mine, now owned by Newcrest Mining subsidiary Lihir Gold Ltd, got approval to build the dam in the 1990s.

However, the Association's chairperson, Roselyne Arau, said Lihir Gold Ltd breached the permitted rates of water usage.

Landowners are seeking 113 million kina, or $US33 million, in compensation.

"They did not comply. They pump out water beyond that permitted rate. That's why they are liable to pay that 113 million kina. It's 113 million just only for three years: from 2013, 2014 and 2015 alone."

Both Lihir Gold and PNG's Conservation and Environment Protection Authority have rejected the Association's claim.

They said the Londolovit Sagomana Association had no legal basis to claim compensation because the state is the "owner" of the water, not the landowners.

The Association wants the government to return ownership of the water to the landowners.

It has again petitioned prime minister Peter O'Neill for help to address the landowners' grievance over water usage.

Mr Arau said landowners had written to the prime minister last year but that he had been too busy to look at the matter at the time.

"This is the start of the brand new year, we want to meet with prime minister in person immediately," she said, indicating the landowners would resort to "other options" if their grievance was not addressed.

"This government is well aware of our plight, there are enough scientific reports and correspondences before it."

According to Ms Arau, the miner's over-extraction of water, as well as its practice of dumping mine waste into the marine environment, has had a detrimental affect on local livelihoods.

"They pump out water every day for gold operations, and they cause so much damage. Sometimes the water goes dry and the fish and everything in the water died away. At the same time we are not using the water any more for drinking and cooking."

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