The Porgera gold mine is located in the Porgera Valley, Enga Province in the Highlands of Papua New Guinea (PNG). Mine production began in 1990, with Placer Dome as the operator until 2006.
The mine is owned by the Porgera Joint Venture (PJV), which is a joint venture between Barrick (95%) and the Government of Enga Province (5%). Barrick operates the mine on behalf of the PJV.
The mine operates on a Special Mining Lease (SML), which was originally negotiated between Placer Dome, local landowners and the Papua New Guinean Government. The lease agreement was formalized under the provisions of the Mining Act of 1992. Under the lease agreement, the operators of the mine have exclusive access to the lease area for the purposes of conducting mining operations under a joint venture arrangement.
ILLEGAL MINING AT PORGERA
Illegal mining frequently occurs in rural areas in developing countries where a relatively low standard of living is evident. It is a complex and difficult issue to manage and one of the principal challenges to mining operations at Porgera.
Illegal miners are people who enter the mine property (SML) without permission with the intention of stealing gold-bearing ore. Those involved in illegal mining are trespassers and are breaking the law.
This differs from artisanal and small-scale miners, who generate income from labour-intensive mining activities, based on either formal legal or informal mining rights. This type of mining activity uses limited technology and often involves traditional panning and sluicing methods to recover gold from creek beds, river benches and other locations. Barrick has an interest in a mutually respectful and peaceful coexistence with lawful artisanal and small-scale miners.
Conversely, illegal mining breaches the provisions of the following laws of PNG: the Mining Act, the Summary Offences Act: the Criminal Code and the laws governing the Porgera Joint Venture.
Porgera – an operation that attracts illegal miners.
The Porgera gold mine is the largest private sector venture in Enga Province, and one of the largest resource projects in PNG. The mine provides jobs for several thousand local people and generates substantial economic benefits for the area. The mine has also invested heavily in health and social services, infrastructure and community development projects. These investments are contributing to improved access to services in the Porgera Valley.
Over the last 15 years, however, there has been very significant in-migration to the valley and an escalation in crime and violence. During this period, the population in the valley has increased roughly from 10,000 to 40,000 people, with a large influx of migrants and squatters to Porgera from other areas of Enga, the Southern Highlands and beyond. Very few illegal miners are originally from the Porgera Valley.
The problem of illegal mining in the Porgera Valley is complex and the broader socio-economic and security situation within PNG must be taken into account when designing an effective and appropriate response to this issue.
Barrick recognizes that this problem requires a holistic and integrated approach that takes into account the root causes and consequences of illegal mining. The company is working with communities, governments, law enforcement and international organizations to find workable solutions. An illegal mining action plan was developed based on an understanding that illegal mining poses a serious threat to the safety of our employees and the wider community and that a proactive approach is needed to help manage this problem.
The issue of illegal mining is primarily one of SAFETY.
Like other mines that Barrick operates around the world, safe work practices at Porgera are non-negotiable.
There are strict safety rules and procedures in place that help to minimize risk and ensure the safety of employees. This ranges from safety systems and practices governing work procedures, to codes of conduct governing how employees are expected to conduct themselves to avoid harm, particularly while working in active mining areas where explosives and heavy equipment are used and seismic activity may be a factor.
Illegal miners have either very limited or no knowledge of how a mine operates and the significant risks associated with geological structures of the pit wall. As such, by entering unsafe areas of the mine and active mining areas, these individuals routinely put their own lives and the lives of employees at risk.
Since 2001, Porgera’s open pit operation has uncovered old underground mine workings, exposing high-grade ore. The visibility of this ore has attracted illegal miners. However, the design of the open pit and the unstable nature of some of its geological structures make the pit walls an extremely dangerous place for people who are untrained and unfamiliar with these surroundings.
Despite this, some illegal miners still attempt to access the old underground workings via the sheer face of the pit wall. The risk of serious injury or death due to falling is extreme in this situation.
Illegal miners do not only put their own safety at risk by entering the pit area; they also put the safety of employees in jeopardy.
In recent years, criminal behaviour in and around the mine site has become more aggressive. Intruders are often armed, carrying axes, machetes, bows and arrows, bush knives and firearms. Frequently they enter the mine site prepared to come into direct conflict with security personnel, who are responsible for the safety of the mine and its employees.
Over 30 per cent of all employee injuries are a direct result of attacks by illegal miners.
Peaceful negotiations – always the first response
Regular incursions by illegal miners into the open pit, the ore stockpiles and the waste areas at Porgera are common. It is not unusual to have up to 200 illegal miners on the mine site over a 24-hour period.
As a matter of principle, both Community Affairs staff and PJV security officers always attempt to remove illegal miners from dangerous areas through peaceful negotiation. This involves talking with the illegal miners about the dangers of what they are doing and encouraging them to leave the area peacefully.
Despite efforts to negotiate peacefully, illegal miners occasionally resist and sometimes conflict arises. Generally these situations are manageable. However, some trespassers are more volatile and aggressive and will attack mine employees, and even police and other officials, who are then forced to defend themselves, leading to a greater risk of tragic consequences.
Barrick and the PJV strictly adhere to PNG law and are committed to upholding the Voluntary Principles on Security & Human Rights, the UN Basic Principles on the Use of Force and Firearms by Law Enforcement Officials and the UN Code of Conduct for Law Enforcement Officials.
Barrick and PJV uphold the UN’s Guidelines on the use of firearms, which states:
“Law enforcement officials shall not use firearms against persons except in self-defence or defence of others against the imminent threat of death or serious injury, to prevent the perpetration of a particularly serious crime involving grave threat to life, to arrest a person presenting such a danger and resisting their authority, or to prevent his or her escape, and only when less extreme means are insufficient to achieve these objectives. In any event, intentional lethal use of firearms may only be made when strictly unavoidable in order to protect life”.
Policing in the Porgera Valley
The number of illegal miners at Porgera has decreased due to a concerted police effort following a 2005 court-issued directive from the Department of Mining (DoM) to enforce the Mining Act.
A departmental action plan was developed which provides for a rolling police presence to prevent and apprehend illegal miners. The National Court sanctioned Illegal Mining Action Plan has strong tri-partite support from government, the company and the wider community.
Under the plan, a tailored human rights training program for the elite police team was conducted with the involvement of the United Nations Development Program. Human rights training is now conducted by the International Committee of the Red Cross, based on the Voluntary Principles and the UN’s Use of Force principles, which were developed to ensure that business practices do not infringe on fundamental human rights.
The plan, which is monitored through a court process, also stipulates that:
- All police activities associated with this deployment are conducted in accordance with PNG law and international law enforcement principles;
- Weekly reporting is required and must be circulated to all stakeholders; and
- An independent third party observer must visit the site and prepare a report detailing compliance with the agreed plan. This report is then submitted to the courts for review
However, the capacity of provincial and national police to respond quickly to armed confrontations and other incidents involving firearms is limited. As a result, the mine has sought to support the police in this role and in the development of a reserve police force in the Porgera area.
The PJV recognises that increasing the number of security personnel to counter the escalation of illegal mining, and a reliance on continued police presence and assistance does not provide a lasting solution.
Investigating conflict
All instances involving confrontations with illegal miners, particularly those that result in serious injury or that require the use of firearms, are reported to local police for investigation or attention.
All arrests of illegal miners are made through the normal judicial process and those found guilty are often charged a significant fine.
The PJV provides whatever support or assistance is appropriate to investigating police, and cooperates fully with police or coronial inquiries into incidents involving the mine. If a person is fatally wounded, a formal report is submitted to the Chief Inspector of Mines, Department of Mining.
Any security personnel found to be in breach of company policy or procedure are subject to disciplinary action up to and including dismissal.
Preventing illegal mining – searching for real solutions
Barrick has established Strategic Guidelines to manage the challenge of illegal mining and trespassing at our operations worldwide. These guidelines represent a forward-thinking approach that identifies key issues associated with this activity and reflects our commitment to keeping our employees and the community safe, while ensuring respect for human rights. The Strategic Guidelines form the development of local security management plans at our mining operations, including Porgera.
In October 2004, a formal risk assessment was conducted involving input from the PNG Department of Mining and other government agencies, NGO representatives and Placer Dome/PJV management, who all acknowledged that any lasting solution to illegal mining problem must involve the government, local communities, NGOs and other key stakeholders.
Barrick’s illegal mining strategy takes into account both security and non-security approaches, focusing on five key areas:
- Government Engagement
- Social License to Operate
- Communications
- Security and Deterrent
- Community Programs
1. Government Engagement
The proactive, formal engagement of all levels of government is necessary to ensure law and order is upheld and to identify opportunities for ongoing cooperation in support of community development.
PJV holds regular meetings with local, provincial and national governments to discuss illegal mining and other related issues.
2. Social License to Operate
The support of the community and key stakeholders is vital to the success of our mining operations. The unique needs, culture and aspirations of the community must be understood by mine staff, just as community recognition of the company’s right to operate is necessary. Local consultation and community engagement is essential to identifying effective solutions to illegal mining and upholding security.
PJV staff actively engage with the community and stakeholders through a variety of outreach and public awareness programs. Regular guided mine tours and presentations are provided to community leaders, village elders, government officials, women’s groups, schools and other groups. These activities enable the company to reinforce the message that illegal mining is unsafe and often extremely dangerous.
In addition, community-based committees related to Law and Order and illegal mining, with the participation of local community leaders have been formed, briefed on illegal mining issues, and engaged in planning and awareness activities. These committees foster greater ownership of community-based security issues and ensure involvement at the community level. PJV works with the community to identify ways of sharing resources to improve security both within the community and at the mine, recognizing that the security of both areas are directly related.
3. Communications and Information
Effective communications both internally for employees and externally within the wider community is essential to building greater awareness and understanding of mining operations and the risks and dangers associated with trespass and illegal mining.
PJV has established continuous lines of communication with local communities regarding the dangers and consequences of illegally prospecting on the mine site. This has included community-based public education campaigns on the unlawful nature and the risks associated with illegal mining and trespassing.
The PJV’s Community Affairs Department conducts a full-time community awareness program aimed specifically at illegal miners. This program ensures that people trespassing on the mine site are aware that it is unlawful to do so, it is dangerous and they could be injured or killed by rock falls, dangerous ground or heavy machinery.
Those who refuse to heed the warning to stop this activity are made aware that they may be apprehended by security personnel and prosecuted through the courts. Information is also given about large fines that can be imposed by the courts.
4. Security and Deterrence
In keeping with Barrick’s security model, all security personnel must comply with the requirements of the Voluntary Principles on Security and Human Rights and support law and order. Promotion of the rule of law and deterrents to criminal activity should be pursued with community leaders, institutions, government and other partners. Clear demarcation of mine property with signage and physical restrictions is used to prevent access to mining property and active mining areas.
The PJV places great emphasis on stopping people entering the mining lease illegally, rather than reacting once trespassers are on site. While these deterrent measures have assisted in restricting easy access to the mine, especially the open pit – in some instances it is simply not possible to stop the illegal miners.
Porgera has co-existed with the community in constructive ways for many years. Until recently, the mine did not have a full perimeter fence. Where fencing would be prudent, the rugged terrain and the sheer size of the site have created logistical problems, often making physical barriers impractical. There are also still many places where entry is possible during the hours of darkness or during bad weather.
However, due to safety concerns, in early 2006 the PJV invested in a major capital project to install a heavy duty, 10.5 kilometre perimeter fence enclosing all active mining and stockpile areas.
In addition, extensive lighting and surveillance infrastructure has been implemented to help security officers to observe people attempting to illegally enter the SML area. Public notices have also been posted along the fence line to warn people of the dangers of entering the mine illegally. We continue to assess and seek options to improve the protection of the perimeter of our operations.
5. Community Programs
Barrick’s security model recognizes that sustainable socio-economic development in developing countries must be part of any lasting solution.
PJV invests extensively in community-based programs to share the benefits of mining, meet immediate community needs, and strengthen socio-economic development in the region. The company focuses on improvements to basic services such as health and education, including literacy and skills training for adults. Many of these programs are targeted at high risk groups who may be involved in illegal mining.
Under the Tax Credit program in 2007, approximately K6.86 million (US$2.46 million) was invested into community development and social infrastructure projects. Historically, these funds have been spent on government infrastructure (36%), road infrastructure and education (18-19% respectively), police facilities (6%) and health and sports facilities (3% each). It is expected to deliver K109.8 miilion or approximately US$39.3 million worth of investments into the community over the life of the mine.
In 2006, Barrick worked with the community to establish an Adult Literacy Program, providing training and part-time staff resources to improve literacy in the region. This investment is supporting programs for approximately 1,500 students in 50 facilities in rural areas. In addition, Porgera has built five new schools in the region over the past two years and continues to work with the Department of Education in Port Moresby.
Barrick has well-established HIV/AIDS programs in the Porgera area. The company recently opened a newly reconstructed health clinic providing voluntary HIV/AIDS services for employees and the wider community. The Porgera mine has funded two full-time staff to facilitate the delivery of HIV/AIDS programming. The mine has also provided funding to enable three local students to attend a two year Community Health Worker training program. Upon completion of training in 2008, they will take up service in government clinics in their home areas around the mine.
PJV has also partnered with a PNG vegetable marketing cooperative, Alele, to help re-establish livelihoods in the highlands potato industry, investing approximately US$60,000 from 2006 to 2008.
In addition, Porgera mine has been actively supporting biodiversity conservation in the area. The mine has worked with Conservation International, a leading American environmental organization, on a recently released report, which has identified new species of plants and little known animals in the Kaijende Highlands of PNG.
