Misima plans an orderly closure
Copyright 2000 The National (PNG)
December 18, 2000
MISIMA MINES is the first of Papua New Guinea's major resources projects to formally present to Government its detailed plans for mine closure.
In an era when there is more talk about closing mines than opening new ones, Misima's closure strategy may become the model which other projects, including Ok Tedi and Porgera, will follow.
With the social and economic dislocation that followed the abrupt closure of the Bougainville mine still fresh in Papua New Guinean memory, Misima Mines is making a major effort to ensure that the closure of its mine, equally significant to both national revenues and the island community, will be as well planned as the process that started the mine, almost 12 years ago.
Mining will cease on Misima in March next year, followed by four more years of processing of low-grade stockpiles.
Since April 1989, Misima has contributed more than K200 million to national and provincial governments revenues, paid K20 million in royalties, spent K15 million on tax credit infrastructure, trained countless tradesmen and women, and overall made a solid contribution to Papua New Guinea's resource-based economy.
All that is about to change.
The Misima Mines workforce will shrink form 740 to 325 when mining ceases.
The combination of lower grade ore and low gold prices will restrict the project's ability to maintain its previously solid support of the national economy.
After four more years, this will cease altogether, as stockpile processing finishes and the people of Misima return to more traditional ways of making a living.
They will have many advantages as a legacy of mining.
Roads, wharves, an airport, a new high school and a modern hospital have all been built.
An educated population, with a decade of experience gained from employment at the mine and its various corporate activities, is already planning to export its skills to projects elsewhere in PNG.
At home on the island, locally organised committees have taken responsibility for planning the community's future directions and needs, and in cooperation with Misima Mines sustainability staff, have invited the participation of shareholders, the private sector, government, NGOs and aid agencies.
The planning process is focussed not only on mine closure, but on ways of maintaining the higher levels of business opportunity and community welfare that have been achieved during the life of the mine.
Agriculture will play its important role in sustaining village life, and Misima Mines has initiated an extensive program to rehabilitate existing crops, introduce new cash crops, establish and train village people in new gardening methods.
Maintaining the present high standards of community health is another priority, together with strengthening the role of women and families.
Misima Mines recognises that the success of its post-mining strategies will set an example for other resource sector projects to follow, and is working closely with government and the community.
Sustainability is a significant corporate objective of Misima Mine's parent company, Placer Dome, and considerable international attention is directed towards making a success of Papua New Guinea's transition into an important phrase in its history, when mines and oilfields are closing as well as opening.