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Ramu Landownders: “We are not going to let this mine proceed”
Concerns over the economic, environmental and social impacts of the Ramu Nickel mine, which first surfaced in late 1999 and were seen as a major factor in the project’s inability to secure financing for over 5 years have brought landowners from across Madang together to express their concerns in a statement of opposition to the mine. An advertisement signed by hundreds of individuals and families within the impact zone for the project ran in the major national daily newspaper, the Post Courier and in the tok pidgin language newspaper, the Wantok in recent weeks, and stated:
MPI spoke to clan leaders, who confirmed their position: Some of the strongest opposition has arisen from the proposal to utilize submarine tailings disposal, an increasingly controversial technique that has seen Newmont directors facing criminal prosecution for its use in Indonesia, and has lead to the World’s largest mining company, BHP Billiton developing a policy against the use of the practice. It is unclear from public disclosure whether the companies and PNG have finalised the agreements. Public reports suggest that the Chinese company has yet to sign binding agreements to develop the project, but is still seeking to secure bank loans to fulfil their side of the agreement which includes a commitment to finance 100% of the capital costs of the mine’s development. The growing landowner opposition, together with controversy over environmental impacts, and questions over the economic feasibility of the project and the unproven nature of the technology needed to process the lateritic nickel deposit has made it difficult for Highlands Pacific to secure a partner or financier amongst the international financial markets and the major nickel mining companies. Whether or not these issues will inhibit the ability of the Chinese company to secure financing for the project is unknown.
Created: 26 Sep 2005 | Last updated: 27 Oct 2005
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Mineral Policy Institute PO Box 435 Katoomba NSW 2780 Australia Phone: +61 (2) 9011 6884 | Email: mpi@mpi.org.au
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