A LOCAL woman leader and environmental activist is querying the bid by a local gold mining company Lole Mining Limited to revive and operate 100 percent of Tolukuma Gold Mine for K50 million in the Goilala district of Central province.
“Who owns this local mining company – Lole Mining Limited and; on what grounds has the liquidator given in recommending this company to acquire 100 percent of the Tolukuma Gold Mine?” a concerned Matilda Koma raised the questions this week.
Ms Koma said Tolukuma is PNG’s only underground mine which has liabilities if thoroughly valued would be well over K15 million. The K15 million is the cost valued by Liquidator Andrew Pini from Pini Accountants.
“K15 million is a joke. Which new local company is interested in purchasing Tolukuma Gold Mine for K50 million and pay liability of K15 million? On what grounds is the Liquidator, Andrew Pini recommending Lole Mining Limited to the Mineral Resources Authority (MRA) to purchase Tolukuma mine,” Ms Koma asked.
“We can’t have any ‘Tom, Dick and Harry’ company to just come in and operate Tolukuma Mine. It is dangerous for locals to be working in the underground tunnels. This company has to have world safety standards and expertise to operate the mine,” Ms Koma said.
She made the remarks in response to an announcement in the media last week by the Managing Director of Mineral Resources Authority (MRA) Jerry Garry that the liquidator has written a letter to MRA asking to transfer the license to a new partner, Lole Mining Limited.
According to Mr Garry the new investor is a local company on the PNG list of Companies and has an association with operators abroad with the capacity and expertise to operate the mine.
The MRA MD said he has instructed a team to review the Tolukuma arrangement and the Mining Advisory Council will make a decision according to the work plan of the company.
Tolukuma Gold Mine’s first gold bar was produced towards the end of 1994. It operated as a small scale mine for more than 20 years and never granted a Special Mining Lease (SML) like the other mines in PNG. The people of Goilala missed out on mine benefits according to Ms Koma.
She added that there was no proper closure plan when the operation ceased and the former developer left.
“Many environmental and social concerns were not properly addressed and no compensation at all was paid for environmental damages and negligence acts by the former developers. Tolukuma Gold Mine has liabilities which is valued well would be higher than what the liquidator is recommending to MRA for reopening of the mine with K50 million and payment of liabilities (K15 million).
“Claims of compensation which now lie before the liquidator must be addressed well before MRA considers the liquidators recommendations for reviving the mine. Have they verified the claims? If so, how much?
“Also, Lole Mining Limited must be a company of experience and reputation on the international market before contracts be given to operate any underground mine. A lot has been experienced by Tolukuma and these concerns need to be addressed now not only for Tolukuma but for other mines in PNG as well,” Ms Koma said.
“There are still a lot of missing gaps in environment and social standards in the mining industrial operations that the PNG government has yet to police and legislate so that all people impacted negatively by mine operations can be covered.
“I just hope that we do not make Tolukuma Mine a guinea pig to be experimented on,” the woman environmental activist said.
Ms Koma is the former Director of CERD (Centre for Environment and Research Development) who researched and exposed alleged environmental pollution by the Tolukuma Gold Mine in mid-2000 until the mine closure in October 2016.
The mine was put up for sale in 2019 with a K1.2 billion outstanding claim which was put under review by Liquidator Andrew Pini of Pini Accountants. Then the PNG government sold the gold mine to Singaporean Company, Asidokona. But Asidokona left in silence and now leaves Tolukuma to the Lole bid.
Meanwhile, the Goilala landowners of the Tolukuma Gold Mine have recently welcomed the announcement of an interested investor – Lole Mining Limited to develop the mine in the district.
That’s the way to go, let’s do that so the people with benefit me