Village Idiot gets support for bond idea [1]
Friday, October 3, 2008 - 09:15. Updated on Monday, April 28, 2014 - 12:12.
Editor,
I write in support of Village Idiot's ideas that mining companies should deposit a bond prior to mining activity to counteract environmental and social disasters. And the ideas he paints on mining corporations walking away with profitable bonanzas from fragile, developing countries seems to ring true here in Papua New Guinea. Last year Emperor Gold Mines a subsidiary of DRD of South Africa walked out of our local Tolukuma Gold Mines in a highly controversial sales deal with PNG governments Petromin. It pocketed undisclosed sums whilst leaving a riverine waste land and health issues affecting thousands of people.
The Porgera Gold Mine in Enga Province is a highly profitable mine operating for nearly 20 years. In that time thousands of tonnes of toxic waste is dumped daily into the Porgera and Strickland river systems which is set to continue for another ten years. The environmental and ecological disaster is huge. The Fly River system in Western Province is the second longest river system in the world with the worlds largest copper mine (Ok Tedi mine) operating at its source. Mine tailings have led to acid rain and dieback of forest vegetation for hundreds of miles down the river. The Ok Tedi region has the highest rainfall in the world but after mining ceases in 2013 it will take over 200 years to flush out the river system.
Bedfellows
It is a blight on society when the greed of corporations with the say so of government can tread all over village idiots whose only fault is that his ancestor bore him on that piece of land. We have seen how corporate greed has overtaken nature's regenerative ability and where governments become bedfellows with resource developers. As the pacific's resource rich nation (a pot of gold floating on sea of oil), what PNG goes through should provide valuable lessons for the wider pacific to learn from. Unfortunately Transparency International ranks PNG as the most corrupt in the pacific, slightly lower than Tonga. It is doubted if any good governance lessons will be forthcoming just yet from PNG.
From day one PNG has dealt with resource developers as a cash cow providing the funds to support its development budget. This will no doubt be the same for Tonga when Nautilus starts paying up. However, when it comes to compensation and reparation in exchange for exploitation of local resources, there are so many systems and processes here in PNG that cause befuddlement and bewilderment, but are 'accepted world standard'. No doubt Nautilus will do the same there. So we have such things as a Tax Credit Scheme and Special Support Grants, and village planning committees, and Trust regions and etc. These are basic community infrastructure and capacity building improvement programs run through funds provided by the developer in lieu of it paying taxes to the state. These eye catching projects appear to appease disaffected village idiots.
But not all village idiots remain idiots for ever, and so you see compensation and reparation packages undergoing constant reshaping, renaming and three way squabbling between state, developer and village idiot over correct payment issues. You also see expensive infrastructure projects no longer serving their purpose, gathering dust, growing back or melting into their former surroundings.\
Upfront bond
I wonder what will happen if we enact laws asking the developer to simply pay a good size bond upfront, which can be converted to development obligations to the community, taxes due the state or insurance for environmental damages etc. in the event the developer reneges mining and environment agreement clauses.
To make my point I draw comparison to a similar resource development. Tongasat. Prior to starting in 1981 did appropriate legislation safeguarding Tongan peoples interest in Tongasat come to the floor of Parliament? If yes, where are the records in Hansard. If not, why is it tabled now by the PM and we are supposed to acknowledge what Tongasat has purportedly done for the people of Tonga in the last 29 years. Bring out the truth!
The developer may refuse and try to go to another place where he can find ignoramus and vulnerable village idiots. But here in the pacific there are fewer and fewer places. Thanks to internet and global connectivity, the village idiot is in real danger of being an extinct species. Now we need all resource rich village idiots from wherever you are in the pacific to come out, state where you are from and get informed and be assisted so as to not be fooled more than once.
Cheers,
Sam Tupou
stupou [at] pngsdp [dot] com