15 June 2019

A gold and copper mine proposed for the Sepik region in Papua New Guinea by an Australian-based company threatens to destroy the health of a major river system, poison fish stocks and cause violent unrest, a report has found.

The Chinese-owned company, PanAust, says the Frieda river project could have a 45-year life span and generate A$12.45bn in tax, royalties and production levies for the PNG government and landholders.

But the report, from research centre Jubilee Australia and Project Sepik, raises serious environmental and social concerns about the mine.

"The lack of information released by the company about its environmental management plans are continuing to cause uncertainty about whether the company's environmental management plans will be fit for purpose," it says.

"The potential for this project to lead to damaging social conflict and unrest is real and must be taken seriously."

...The report notes that one of the PanAust project's biggest challenges will be building a safe storage facility for the mine's tailings...to prevent acid rock drainage.

In response to to questions from Guardian Australia, the company said PanAust had not received a copy of the Jubilee report and "as such, the company is not in a position to comment on its contents".

It did however say that PanAust had submitted its plans and an environmental impact statement to PNG regulators and was working with them on its approval.

The report also accused PanAust of a flawed consultation process with indigenous communities downstream from the mine which has created an "atmosphere of animosity and lack of trust" and resulted in acts of sabotage.

...In a company announcement in December, PanAust characterised the mine project as a "nation building development".