PNG land-holders cripple mine

By Norm Dixon

PNG's newest gold mine — the Tolukuma Gold Mine in the Goilala mountains in Central Province — is the latest site of conflict between traditional land-holders and an Australian mining company. On August 5, rioting broke out after the collapse of a meeting over grievances between land-holders and officials of Dome Resources NL. According to the PNG Post-Courier, the riot was sparked by a fist fight between a land-holder and a company director.

The Tolukuma mine, currently under construction, is 100 kilometres north of Port Moresby. Once in operation, it will produce 100,000 ounces of gold a year for five years. It is expected that further exploration will increase the life of the mine.

Members of the Yulai Landowners Association disrupted water supply to the mine and two mine towns. Construction is at a standstill after workers employed by contractor Thiess Australian were withdrawn pending restoration of water. Dome Resources has flown in five armed guards with attack dogs "to maintain law and order". The PNG government dispatched more police to the area. At least 12 land-holders have been arrested in relation to the disturbance.

Land-holders are unhappy that approval for an exploration lease has been granted by the PNG Department of Mining and Petroleum in an area adjacent to the mine. Land-holders are opposed to exploration in the area and had told the department they were opposed.

From GLW issue 200