Papua New Guinea’s Trade Minister Richard Maru has complained that his country’s trade deal with Australia has been skewed in Canberra’s favour for decades, and suggests the country will trade more with China.

Minister Maru said Beijing should be PNG’s focus for trade and investment opportunities because not enough was being done to assist PNG’s agriculture exports to Australia.

Maru is particularly unhappy with agriculture exports, which account for less than two percent of PNG’s exports to Australia, while minerals dominate.

• READ MORE: Other PNG trade reports

“Enough is enough,” he said. “Starting this year, we are moving on. We will partner with whatever country that will help us achieve that.

“We are friends to all and enemies to none. We are not interested in geopolitics.

“Our main priority is securing the future of our people.”

Australia is supporting bolstering PNG’s agriculture exports, with Australian Prime Minister Anthony Albanese earlier this year promising assistance to improve the biosecurity regime that would enable farmers and producers to access international markets.

To deepen trade with China, a feasibility study is underway to assess the possibility of a free trade agreement (FTA).

While Australia is PNG’s largest trade partner, China is a close second, coupled with PNG enjoying the largest trade surplus of any of its other trade partners.

Australia is also pursuing an FTA with Port Moresby, with its own feasibility study to be concluded this month.

Bougainville flexes legal muscles
Meanwhile, the President of the autonomous Papua New Guinea region of Bougainville says his government will not allow foreign investors to breach its laws to exploit its people and resources.

President Ishmael Toroama made the statement as the Bougainville Executive Council refused to grant a mining licence application for a joint-venture involving Wyndale Holdings and its local partners.

The joint venture wanted to mine in the Eivo/Torau areas as well as the Jaba River middle to lower tailings areas.

The Bougainville government said in a statement that Wyndale was a private Australian company with links to Australian Nic Zuks which, it said, claimed to have been issued mining licences by the autonomous government.

President Toroama said the applicants failed to meet the requirements provided by the Bougainville Mining Act 2015.

He said the ABG would not entertain companies and individuals which used “duplicitous means” to exploit Bougainville’s mineral resources.

The President also cautioned investors to be wary of being misled and that the ABG would not be held liable for losses incurred as a result of fraudulent misrepresentations.

This article is republished under a community partnership agreement with RNZ.

Community leaders around Panguna mine in the autonomous Papua New Guinea region of Bougainville want mining giant Rio Tinto to help out following recent flooding.

Rio Tinto was the owner/operator of the mine which has laid derelict for more than 30 years.

Fears of the threat from flooding in the river system near the mine have increased in recent years.

• READ MORE: Other Panguna mine reports

Recent heavy rain has choked rivers with mine tailings waste, resulting in several communities being swamped.

Residents have reported peoples’ homes have been inundated, water supplies and food crops compromised.

The flooding risks were highlighted in an independent report by Tetra Tech Coffey published last year.

This report was prepared as a baseline to inform an independent human rights and environmental impact assessment that launched in December 2022 and which Rio Tinto committed to fund in response to a human rights complaint by 156 local residents.

Phase 1 of the assessment is due to report in mid-2024.

Immediate funding call
Community leaders are calling for immediate funding from Rio Tinto for tangible action to address urgent health and safety issues in their communities, as well as a commitment from the company now that it will fund long-term solutions after each phase of the impact assessment.

To date, Rio Tinto has agreed to fund the human rights and environmental impact assessment only.

The chairperson of the Lower Tailings Landowners Association, Bernardine Kiraa, said: “Our communities are drowning in mine tailings waste.”

“The recent flooding damaged peoples’ houses, food crops and water sources. Women have been having trouble finding clean water to wash their babies.

“We worry about the spread of mosquitoes and disease following the flooding.”

Theonila Roka-Matbob, who is a local MP and local landowner, and who led the campaign for the environmental assessment said: “We have welcomed Rio Tinto’s commitment to assessing the impacts of the Panguna mine.”

“We know the process will be a long one. But we have been dealing with the disaster caused by the mine for decades.”

‘Always worrying about food’
“We are always worrying that the food we eat, the water we drink and the air we breathe is not safe. We worry about levees collapsing and mine waste flooding our lands and communities,” she said.

“We need tangible action now to address urgent health and safety issues. And we need to know what Rio’s intentions are after the impact assessment – that they will stick with us and fund the long-term solutions we need.”

The legal director at Australia’s Human Rights Law Centre, Adrianne Walters, said: “Communities are being asked to be patient while the impact assessment progresses over a number of years.”

“But they also need action now and a public commitment from Rio Tinto that it will actually remedy the devastating impacts of the mine.”

“Rio Tinto’s commitment to assessing the impacts of its former mine is an important first step,” Walters said.

“The company now needs to publicly reassure communities that it is firmly committed to funding the long-term solutions that will allow them to live safely on their land.”

Rio Tinto gave away its shares in Bougainville Copper Ltd (BCL) in 2016 but it has subsequently agreed to the funding of the human rights and environmental assessment.

This article is republished under a community partnership agreement with RNZ.

The United Liberation Movement of West Papua has blamed the Indonesian military over the attack at a hospital in Kiwirok, near the Papua New Guinean border, in which a nurse was killed.

Interim president Benny Wenda of the ULMWP has issued a statement in response to accusations by the Indonesian authorities against the West Papuan army, saying that the upsurge in violence is because of the militarisation of the region to protect business and a “destroy them” policy directive from Jakarta against West Papuan resistance.

Indonesia has accused the West Papuan army of attacking the hospital and killing nurse Gabriella Meliani in Kiwirok.

• READ MORE: TPNPB allegedly attacks health center in Papua’s Kiwirok District, murders a nurse
• Other West Papua reports

But Wenda claimed, according to sources he has spoken to, the clash was started by an Indonesian migrant doctor threatening people with a pistol.

“This triggered a West Papua Army investigation. A nurse fled from the scene and fell down a slope, fatally injuring herself,” said Wenda.

Indonesia had deployed more than 21,000 new troops since December 2018, displacing tens of thousands of civilians from Nduga, Intan Jaya, Puncak Jaya and Sorong.

Not keeping Papuans safe
“These troops are not there to defend Indonesia’s ‘sovereignty’ or keep my people safe; they are there to protect illegal mining operations, to defend the palm oil plantations that are destroying our rainforest, and to help build the Trans-Papua Highway that will be used for Indonesian business – not for the people of West Papua,” Wenda said.

“The Indonesian government is creating violence and chaos to feed these troops. As the head of the Indonesian Parliament, Bambang Soesatyo, ordered, ‘destroy them first. We will discuss human rights matters later’.

“He reiterated this statement [on Monday], and was backed by Coordinating Minister for Political, Legal and Security Affairs, Mahfud Md.”

The killing of Pastor Yeremia Zanambani and his two brothers in April last year was an example of how this policy worked.

“Indonesian soldiers murdered the two brothers in April last year. Months later troops tortured and killed the pastor,” Wenda said.

Indonesian soldiers to blame
“In both cases, the military blamed the West Papua Army for the attacks – but Indonesia’s own human rights commission and military courts found that Indonesian soldiers were to blame. A similar pattern will unfold with the events in Kiwirok.”

Wenda said Indonesia must allow the UN High Commissioner for Human Rights into West Papua to investigate this violence and produce an independent, fact-based report, in line with the call of 84 international states.

“Indonesia’s ban on media, human rights groups and aid agencies from entering West Papua must be immediately lifted. If Indonesia is telling the truth about these events, why continue to hide West Papua from the world?,” he said.

“This war will never end until President Widodo sits down with me to solve this issue. This is not about ‘development’, about how many bridges and roads are built.

“This is about our sovereignty, our right to self-determination — our survival.”

A suicide bombing near Kabul airport on Thursday added another dimension to the chaos in Afghanistan as Western forces rush to complete their evacuation.

Islamic State claimed responsibility for the blasts that killed at least 175 people, including 13 US soldiers, challenging the Taliban’s hold on the capital.

Either group is bad news for Afghan women and girls, and anyone with links to the former government or exiting armies.

• READ MORE: Afghanistan at risk of hunger amid drought and Taliban takeover
• Other Taliban takeover articles

Taliban officials are on a charm offensive in international media, with one suggesting to Newsweek the group could contribute to fighting climate change if formally recognised by other governments.

Don’t expect the Taliban to consign coal to history any time soon, though. The militant group gets a surprisingly large share of its revenue from mining — more than from the opium trade — and could scale up coal exports to pay salaries as it seeks to govern.

Afghan people could certainly use support to cope with the impacts of climate change. The UN estimates more than 10 million are at risk of hunger due to the interplay of conflict and drought.

Water scarcity
Water scarcity has compounded instability in the country for decades, arguably helping the Taliban to recruit desperate farmers.

There was not enough investment in irrigation and water management during periods of relative peace.

One adaptation tactic was to switch crops from thirsty wheat to drought-resistant opium poppies — but that brought its own problems.

The question for the international community is: who gets to represent Afghans’ climate interests?

If the Taliban is serious about climate engagement as a route to legitimacy, Cop26 will be an early test.

Megan Darby is editor of Climate Change News.

A concerned Papua New Guinean woman leader and NGO activist, Matilda Koma, has called on the Central provincial government and mining authorities to have more control over small scale alluvial mining activities surrounding the former Tolukuma gold mine in the Goilala district.

“I have lost a cousin sister and grandchild in Monday’s landslide disaster at Saki and I am saddened,” Koma told the PNG Bulletin.

“I am thankful to the Goilala Member William Samb and Central Governor Robert Agarobe for their quick response but this is just a reaction to the issue that would not have happened if proper action had been taken in advance by responsible government agencies.”

• READ MORE: Other Tolukuma landslide reports

“I am from the Woitape district where the former Tolukuma gold mine and Saki village is.

“Saki was inhabited prior to the discovery of gold, but if now – according to reports – there are 300 people camping there to do alluvial gold mining then that is a lot of people.

“From the photos taken of the site, it seems quite a big operation for a local group. With such an operation responsible authorities should already be aware of its scale of production and must have in place systems to ensure there is safety on site.

“I am aware that the Central provincial government has a position and perhaps an officer responsible for mining. And the Mineral Resources Authority (MRA) has a division responsible for regulating small scale alluvial mining activities.

“However, I am not sure what role they play.”

Other small scale mining camps
Koma said there were other small scale mining camps like Saki all around the former Tolukuma gold mine and if the Member for Goilala and Central provincial government and MRA were not aware this was taking place “then this is very surprising”.

She added that small scale mining activities contributed to the nation’s economy and if not properly controlled and monitored then such incidents like Saki will unfortunately occur.

“People in Goilala have been and are currently doing small scale alluvial gold mining without guidance. They use local knowledge to buy and sell.

“I am not aware of any form of training and risk awareness in Saki and the other alluvial gold mining camps.”

The rugged geographical terrain and the handling of mercury needed to be properly researched and people trained to “handle this dangerous chemical”, Koma said.

MRA needed to properly regulate small mines so they could track revenue generation and expenditure.

“Ignorance of such concerns bring about detrimental impacts on local communities which struggle to make money to catch up to a modernised society,” Koma said.

Harlyne Joku is a Papua New Guinean environmental journalist. This article is republished with permission.

A Solomon Islands province has agreed to lease a large island to a Chinese developer to develop into a special economic zone, weeks after the country opened diplomatic ties with China.

But already cracks abound; there has been no official announcement and the provincial premier says the deal is on ice.

Experts say the arrangement in Central Province would give the developer and other Chinese firms a strategic inlet into Solomon Islands, which until last month was one of Taiwan’s dwindling allies in the Pacific.

READ MORE: PNG and Solomons governments call for changes to forestry

The government traded Taiwan for China in a move that it said would promise more development for the nation.

The Central Province agreement, signed 22 September, would give Beijing-based Sam Group an exclusive five-year development lease for Tulagi island and its surrounding islands, according to a copy which was shared on Facebook on Friday by a Solomon Islands youth group which is pro-Taiwan.

RNZ Pacific has verified the leaked copy’s authenticity with two sources who are familiar with the agreement’s contents.

Central Province premier, Stanley Manetiva, confirmed he had signed the “strategic cooperation agreement” in Honiara with representatives of Sam Group, but said it was not legally binding and the company would have to comply with local laws and respect landowner rights on Tulagi.

“To be honest here, leasing Tulagi will not be possible,” he said in an interview. “Nothing will eventuate on the agreement.”

A phone number for Sam Group’s office in Beijing listed on its website was disconnected on Friday. Another company listed as a party to the lease agreement, Xiamen International Trade Group, could not be reached for comment.

According to a statement posted to Sam Group’s website, a Solomon Islands delegation visited its headquarters in August.

The two parties “hoped to carry out comprehensive cooperation in energy, chemical industry, investment, trade and other fields in addition to existing cooperation,” the statement said. It was unclear whether the visiting delegation was from Central Province.

“We want the investors to come to our province,” said Manetiva, adding the diplomatic switch had opened investment opportunities for Solomon Islands. “But we must be mindful, mindful in a sense that we must see that the people are our priority.”

Not everyone’s convinced the deal with Sam Group is as non-binding as Manetiva claims.

Solomon Islands’ deputy opposition leader, Peter Kenilorea Junior, was worried the lease would still go ahead.

“It raises a lot of concern for me, I didn’t see any protection, or at least any obligation in the agreement that I saw that also safeguards the interests of Central islands province peoples and the resources.”

As part of the Tulagi lease, Sam Group would be able to survey the island for oil and gas developments, despite what Kenilorea Junior described as a sizeable anti-mining movement on the island.

Central province, which hosted the former capital under British-ruled Solomon Islands, has a relatively small population of around 26,000 people, but covers a vast area of more than 600km2 of mostly-ocean. The province is also located close to the Guadalcanal, where the current capital Honiara is.

Kenilorea Junior said the province’s strategically central location might have made it a target for a Chinese developer like Sam Group.

“This may be a means to sort of piggybacking other companies into the Solomons,” said Anna Powles, a senior lecturer in security studies at Massey University in New Zealand.

She questioned whether one of Sam Group’s subsidiaries, China Jing An, was privately-owned because it was previously part of China’s Public Security Ministry.

“My sense from other research and other companies similarly, is that there are still very strong ties there.”

Still, local businesses on Tulagi have welcomed what they say is sorely-needed development on the island.

“We don’t have any banks and services here is quite low, and having investors to come and improve the place would be really great,” said Teika Dennis, the owner of the Vanita Motel and Restaurant.

• This article is published under the Pacific Media Centre’s content partnership with Radio New Zealand

Government revenues from Papua New Guinea’s mining, oil and gas sector have essentially dried up.

With the ongoing effects of the devastating earthquake in Hela province, the eruption of election-related violence in the Southern Highlands, a significant budget shortfall, and a foreign exchange crisis driving business confidence down, the resources of the government are severely stretched… and the massively expensive APEC meeting looms in November.

In this context, the drop in government revenue from the resource sector is staggering. And accounts in significant part for the growing fiscal stress.

In 2006-2008, according to Bank of Papua New Guinea figures, the government collected more than K2 billion (NZ$0.9 billion) annually from the sector by way of taxes and dividends, on mineral exports that had just topped K10 billion (NZ$4.6 billion) for the first time.

In 2017, the figure is just K400 million (NZ$180 million) on exports of K25 billion (NZ$11.5 billion) – a revenue reduction of more than 80 percent in the same time that exports have increased by 150 percent.

Government dividends and corporate taxes made up just 1.6 percent of the value of exports in 2017 (and that was a significant increase over 2015 and 2016).

If we take the long-term average share of the value of exports that the government has received (at a little over 10 percent), this points to a potential ‘‘hole’’ of at least K8 billion over the past four years, an amount that would go a long way to covering the current fiscal deficit.

Some precedents
There are some precedents for the rapid drop in government revenues from the sector. In 1990 and 1991 – just as the ‘‘resources boom’’ triggered by the Porgera gold mine and oil production at the Kutubu oilfield began – revenues collapsed, largely due to the closure of the Bougainville copper mine in 1989; and again, briefly in 2009 due to the onset of the global financial crisis in 2008.

But neither of these has been as deep or as sustained as the current hole.

A full explanation of the precipitous decline in resource revenues is beyond the scope of this analysis.

Clearly, a number of factors are involved, including a fall in commodity prices, major construction and expansion costs (which attract accelerated depreciation provisions) and generous tax deals.

The revenue dry-up of the past four years also reveals that the state bears a disproportionate share of the risks associated with resource projects and investments. If we go back to the original intent of the post-Independence mineral policy, it was to translate mineral wealth into broad-based development across the whole country:
“…known mineral resources should be developed for the revenue they can provide to the government” (PNG Department of Finance 1977: 2).

This clearly has not happened in the last four years. And certainly the Treasurer cannot be critiqued for commissioning yet another fiscal review: this seems appropriate, although whether it effectively addresses broader issues of a “fair share” of mineral wealth remaining in PNG remains to be seen.

While there is much less money coming from the resources sector, there is at least better data than there used to be. The Extractive Industries Transparency Initiative (EITI) is a global initiative begun in 2002 to give transparency to what were regarded as often opaque flows of resource revenues from multinational companies in the extractives sector (especially oil) to the state in the countries in which they were operating.

Voluntary initiative
It is a voluntary initiative in which countries (and companies) can elect to become a “candidate” country, and so long as they are able to be compliant with EITI standards, they can be admitted as a full member of EITI.

The key requirement is to be able to report in a reliable way (through third party audits) on the revenues paid by companies, and reconcile these with payments received by the different arms of the state.

The involvement of all parties – companies, governments and civil society – and public communication around the event and its products is also seen as central to both transparency and raising awareness of the nature of resource revenues and their destination.

Papua New Guinesa initiated its involvement in EITI in 2012. Four annual EITI reports have so far been produced (for the years 2013 to 2016). These reports provide an increasingly rigorous and transparent set of data on flows from the sector to the government, and identify additional revenue streams to the government than what BPNG use (and have used for the past 40 years).

When all the additional revenue streams that EITI identify are included, the total share of the value of mineral exports rises to around 6.5 percent for 2017, up from the 1.6 percent based on the BPNG data.

EITI is not without its problems and the most recent PNG country report identifies areas where it needs to be strengthened in PNG, and a focus on companies rather than operations can lead to the obfuscation of total flows and payments from each mine, oil and gasfield.

In the PNG context, an examination of the sub-national flows and audit trails is also significant, and an initial study into this is underway.

This article was originally published in the PNG Post-Courier.

As it seeks to diversify its sources of fuel, India is looking to get in on the ground floor of coal mining in previously unexploited deposits in Indonesian-ruled Papua.

In exchange for technical support and financing for geological surveys, officials say India is pushing for special privileges, including no-bid contracts on any resulting concessions  a prospect that could run foul of Indonesia’s anti-corruption laws.

The details of an Indian mining project in Papua are still being negotiated, but Indonesia’s energy ministry welcomes the prospect as part of a greater drive to explore energy resources in the country’s easternmost provinces.

READ MORE: Strategic partnership between India and Indonesia

In future, the ministry hopes mining for coking coal will support the domestic steel industry, while also bringing economic benefits to locals.

Rights activists, however, fear the launch of a new mining industry could deepen tensions in a region where existing extractive projects have damaged the environment and inflamed a long-running armed conflict.

Indonesia’s new coal frontier
When Indian Prime Minister Narendra Modi visited Jakarta last month, joint efforts to extract and process Indonesia’s fossil fuels, including coal, were on the agenda.

India’s interest in investing in a new coking coal mining concession in Papua can be traced to 2017, when officials from the Central Mine Planning and Design Institute (CMPDI) and Central Institute of Mining and Fuel Research (CIMFR), both Indian government institutes, met with Indonesia’s Ministry of Energy and Mineral Resources in Jakarta.

The bilateral plan was announced by then-ministry spokesman Sujatmiko after the first India Indonesia Energy Forum held in Jakarta in April 2017. “The focus is on new territories in Papua,” he said.

To follow up, the Ministry of Energy and Mineral Resources sent a team to India in early May. The current energy ministry spokesman, Agung Pribadi, who was part of the delegation, told Mongabay that officials from state-owned energy giant Pertamina, major coal miner PT Adaro Energy, and state-owned electricity firm PLN also joined the meeting.

The Indonesian team presented research outlining the potential for mining high-caloric content coal in West Papua province, and lower-caloric coal in Papua province.

According to the team’s report, only 9.3 million tons of reserves have so far been identified. By contrast, Indonesia as a whole expects to export 371 million tons of coal this year. However, the true extent of coal deposits could be larger, said Rita Susilawati, who prepared the report presented during the meeting and is head of coal at the ministry’s Mineral, Coal and Geothermal Resources Centre. “Some areas in Papua are hard to reach due to the lack of infrastructure. We were unable to continue the research,” she explained.

During the visit, Indian and Indonesian officials discussed conducting a geological survey in Papua, Agung said. India would finance the survey using its national budget. With Indonesian President Joko Widodo prioritising infrastructure investment, the energy ministry has few resources to conduct such surveys.

Expected privileges
Indonesia also anticipates benefiting and learning from India’s experience in processing coking coal.

In exchange, India expected privileges from the Indonesian government, including the right to secure the project without a bidding process, Agung said.

Indonesia denied the request, and the talks were put on hold. Approving it would have been too risky, Agung said, since the bidding process is regulated in Indonesia. “We recommend they follow the bidding process or cooperate with a state-owned enterprise,” Agung said.

India’s ministry of coal did not respond to an emailed request for comment.

Energy and mining law expert Bisman Bakhtiar said there was still a chance India could get the rights to develop any resulting coal concessions without having to go through an open bidding process. “It can proceed under the G-to-G (government-to-government) scheme by signing a bilateral agreement,” he said.

This form of agreement would supersede the ministerial regulations requiring competitive bidding, Bisman explained, although he said any such agreements should emphasise that any projects must be carried out according to local laws.

There is precedent in Indonesia for G-to-G schemes bypassing the open bidding process, Bisman said. For example, multiple projects have been carried out on the basis of cooperation agreements with the World Bank and Australia. In another instance, Indonesian media mogul Surya Paloh imported crude oil from Angola via a bilateral cooperation agreement with Angola’s state-owned oil company Sonangol.

Draft law
A draft law currently being discussed in the House of Representatives could also smooth the path for India. It says that if there is agreement between Indonesia and a foreign government to conduct geological studies, the country involved will get priority for the contract.

However, this would still require the country to meet market prices. “We called it ‘right to match.’ If there are other parties who offer lower prices, then they should follow that price,” Bisman said.

Another option would be for India to appoint one of its local companies to work with Indonesian private sector giant Adaro or state-owned coal miner PT Bukit Asam. Such a deal could be conducted as a business-to-business (B-to-B) agreement, and would be legal according to Indonesia’s Energy Law.

Or, Indonesia could assign a state-owned firm like Bukit Asam to work with India based on a memorandum of understanding (MOU) signed by both countries.

“But all these options have a potential risk,” Agung said. “They can be categorised as collusion by the Corruption Eradication Commission (KPK).” He said a conventional bidding process should be prioritised.

Bisman said India needed to consider other risks, such as the social and political situation in Papua. The region is home to an armed pro-independence movement and has faced decades of conflict around the world’s largest and most profitable gold and copper mine, Grasberg, owned by US-based Freeport McMoRan.

‘Land grab’
Despite the presence of the mine, Papua remains Indonesia’s poorest province, with some of the worst literacy and infant mortality rates in Asia. Indonesia’s National Commission on Human Rights (Komnas HAM), a state-funded body, has characterised Freeport’s concession as a “land grab,” for which the original stewards of the land, the Amungme and Kamoro indigenous people, were never properly consulted or compensated.

The Indonesian energy ministry’s own research says that any project must take into account the impact on Papua’s indigenous peoples, and must factor in specific local concepts of land ownership, leadership and livelihood.

Franky Samperante, executive director of rights advocacy group Yayasan Pusaka, said he was worried about the plan. “It is way too risky,” he said, pointing to the social and environmental fallout of the Grasberg mine.

“There should be communication between the mining company and indigenous Papuans,” he said, warning Jakarta to carefully calculate the social, environmental and national security impacts.

Local indigenous people need to be meaningfully involved in the decision-making process, he said, especially since the mining would occur in and near forests where indigenous people live and gather and hunt their food.

• More coal mining stories

Volunteer teachers are being maliciously labelled as “terrorists” by the Philippine government while paramilitary and mining activity increases in the country, say visiting indigenous Lumad education advocates.

Fritizi Junance Magbanua, a volunteer teacher and administrator with the Save Our Schools network, says teachers, schools and communities of indigenous peoples are being targeted and labelled as terrorists by the government.

The Save Our Schools network is a collection of 215 community based schools that operate throughout the southern Mindanao island region in the Philippines.

VIEW MORE IMAGES: Lumad campaigners appeal for NZ support to defend schools

The network is part of community groups and advocates that fight for indigenous peoples rights to “defend their land, right to education, right to self-determination,” said Lorena Sigua at a public meeting in Auckland’s Peace Place last night.

She is a volunteer at Education Development Institute (EDI) curriculum development based in Mindanao.

Auckland Philippines Solidarity, a group sponsoring the visit of the Lumads to New Zealand,  also launched an “open letter” to the Philippine government at the meeting, supporting a campaign by human rights defenders for the indigenous schools.

The letter called on the Philippine government to immediately scrap the “baseless, malicious and arbitrary terrorist listing of community activists”.

Magbanua said: “Save Our Schools has documented 89 harassments of our schools, 18 military activities inside our school vicinity, 27 schools forcibly shut down because of the intensifying military presence in our area.”

This does not just apply to school teachers. “The environmental activists, human rights activists are also being targeted and tagged as terrorists,” said Sigua.

The indigenous people, known collectively as Lumads, are the main people suffering. “Our indigenous peoples in the Philippines are now being attacked by our government,” said Magbanua.

“Mostly those who are killed are our parents and our tribal leaders who constructed the schools.”

Mining behind military threat
The threat of paramilitary and government military activity is part of the government’s move to allow mining by multinational corporations in the area.

“The southern Mindanao is blessed with a lot of resources. It is the mining capital of Philippines. As you know, big businesses are coming over to take advantage of that,” Sigua said.

“Ironically, we are the poorest region but it is the mining capital,” said Magbanua.

“When mining is in our area, the first step our government will do is deploy their troops to give way to the mining equipment. They harass people to vacate their land.”

It can also turn violent. “One of our supporters was killed a couple of weeks ago by a paramilitary group.”

Magbanua pointed to the actions of President Rodrigo Durterte which she said were encouraging the violence.

“In the first six months that President Durterte was elected, we were hopeful for a change… he says he was a socialist, and a leftist, a pro-Lumad, and anti-mining.”

‘Changed his tune’
But in November 2017 when the APEC summit took place in Manila and President Trump visited the Philippines, Duterte seemed to change his mind.

“After the visit of Trump, he changed his tune. He welcomed all the investors to extract our natural resources. So he’s a puppet,” said Magbanua.

Sigua said: “The educators in Mindanao are being targeted as terrorists.

“The indigenous peoples are now being empowered and educated because of the schools. If they are empowered, they know their rights.”

Magbanua said: “Duterte was the one who says he would bomb our schools… Under his regime, 37 Lumads have been extra-judicially killed under martial law.”

Sigua said: “There is massive militarisation in the in area. Students are evacuating, the community is evacuating.”

“There is now militarisation in the indigenous communities,” she said. This was a reaction against the fear and tension caused by other military forces in the area.

‘Land is life’
Land is often at the center of the conflicts. “We believe that land is life,” says Magbanua.

“We, the indigenous people, need to protect it from mining and multinational corporations. We have to defend this for the next generation.

“We get all our needs from the mountains. From our medicines, our foods it is our supermarket and hospital.

“We call our land the land of promise. The greedy people want to take it away from us and convert it into banana plantations and mining areas.”

After getting her university degree, Fritzi Junance Magbanua committed herself to serving indigenous people.

“For six years now I’ve been teaching and monitoring my co-teachers, facilitating the training, and doing some psychosocial therapy with my students.”

Magbanua has never thought about doing anything different than being a volunteer teacher.

‘Indigenous need me’
“After I graduated, a lot of opportunities came my way but I turned them down. Somebody needs me and it is the indigenous people.”

“It is my commitment and responsibility to be with them and serve them without anything in return.”

A turning point for her was her personal connection to the Lumad’s struggle. “By blood I am also a Lumad. I see their plight, their hunger for education. When I have this knowledge, I just want to help and educate them also.”

I am a part of their struggle to defend their land. Their plight at Mindanao is to uphold their right to self-determination.”

Lorena Sigua is from Manila. She is a graduate of the the University of the Philippines and currently is a volunteer at the Education Development Institute (EDI) curriculum development based in Mindanao.

Sigua was inspired to get involved with Save Our Schools after witnessing the Lakbayan march, where indigenous peoples were protesting about their concerns.

Challenging life
Life as a volunteer teacher in Mindanao is challenging, said Magbanua.

“Once you are a volunteer, you are not just a teacher. You are a counsellor too. The community respects us and sees us as their hero because no body cares. Especially the government in our communities, but only us teachers and the institutions we came from.

Being a teacher for the indigenous peoples has a lot of sacrifices. We are not salary based. We receive NZ$100 a month.

The teachers often must travel to remote locations to reach local communities. “We are deployed in far flung areas.”

The furtherest place the network serves requires a two-day walk through a snaking path to travel to. “We cross one river 52 times. But it’s just a little sacrifice. For us we are ready to commit ourselves to the less fortunate who are hungry for education.”

The organisation demands no payment for their work. “Our education is free for all. We don’t ask for anything in return. In fact, we provide school supplies, toiletries to continue and sustain their education.

“On our island in Mindanao, there is no electricity, no signal. You have to walk an hour to search for a signal. You literally have to climb up a tree just to search for the signal.”

Asia-Pacific consultation
Kevin McBride, national co-ordinator of Pax Christi Aotearoa, hosted the talk.

“I had expectations it would be a good revelation of the situation in Mindanao of the Lumad people,” said McBride.

In December 2017, McBride represented Pax Christi in attending an Asia-Pacific Consultation in the Philippines.

With the New Zealand government being in touch with President Duterte, McBride believes New Zealand should try to do more to help.

“We do have opportunities to raise these issues and hold them to account for their activities. Shamefully, too often we don’t as it would affect our trade.”

Appeal for help
Every year the indigenous peoples go to the capital region in the Philippines to rally and send a message to the government about their concerns.

It is called a Lakbayan, said Sigua, and it was similar to the Hikoi taken by indigenous Māori in New Zealand.

“We are sharing a struggle with Māori,” said Magbanau.

“We are appealing to your government to support our calls to stop the attacks on the activists. The activists in the Philippines are being tagged as terrorists.”

Jean Bell is contributing editor of the Pacific Media Centre’s Pacific Media Watch freedom project. Additional reporting by Rahul Bhattarai who is an Auckland University of Technology student working towards a postgraduate diploma in Journalism.

• More Philippine stories

BACKGROUNDER: PNG Mine Watch

Mine Watch recently predicted that Bougainville President John Momis’ appetite for crooked foreign miners was very much alive. How right we were.

In a gushing column in the Post-Courier – which reads like a salivating love poem – it was announced that President Momis had teamed up with his former nemesis – money bridges all divides – Sam Kauona to bring in a Filipino mining company to explore 183 square kilometres of land.

The company is called, SR Metals Inc., and is led by Eric Gutierrez. It has come to “liberate” Bougainville from its bloody history, we are told.

READ MORE: Philippine mining company wins Bougainville search licence

Now while we might want to believe the Post-Courier, John Momis and Sam Kauona, as entities of integrity who would never lie, the ever sceptical PNG Mine Watch team decided to look at the track record of SR Metals Inc. and Eric Gutierrez.

What did we find?

Report after report in the Filipino press accusing SR Metals and its chief of corruption, clientalism, and illegal mining.

Indeed we are told Gutierrez is very fond of funding politicians who are good for his business.

‘Duping government’
And, no less, he has been accused of using fraud to “dupe the government and their business partners of billions of pesos in mining revenues”. Guess they saw President Momis and Kauona coming.

To cap it off, the company SR Metals, has been fined for environmental violations.

And a Senate inquiry found the company “over-extracted 1.8 million tons of nickel ore”, in violation of regulations. 

• Philippine mining company wins Bougainville search licence
• Landowners and companies in new battle for Panguna mine
• Candidate Roxas’ mining cronies
• Gutierrez charged with falsification
• Mining ban still in effect, says Roque
• SR metals trending stories

An Indonesian court has convicted and sentenced an environmentalist to 10 months in prison on a charge of spreading communism by carrying a hammer-and-sickle banner at a protest last year.

The prosecutor at the Banyuwangi District Court, in East Java province, had sought a seven-year sentence for defendant 37-year-old Hari Budiawan (alias Budi Pego).

Communism has been outlawed in the country since the mid-1960s, when a bloody purge against suspected members of the Indonesian Communist Party (PKI) occurred.

A panel of judges ruled on Tuesday that Budi was guilty of a charge against “those who publicly commit crimes verbally, written, or through other media, spread or develop communism, Marxism, Leninism in any attempt”.

“The prosecution proved convincingly that the defendant committed a criminal offence against the state,” chief judge Putu Endru Sonata ruled. “Therefore he must serve 10 months in prison.”

On September 4, 2017, Budi was taken into custody and charged with carrying a banner that displayed communist symbols during an anti-mining protest in East Java in April 2017, causing public unrest.

The court ruled on the lesser sentence because the defendant had never been involved in criminal acts.

Important evidence
The banner’s hammer and sickle logo – the symbol of the liquidated PKI – was important evidence leading to the conviction, Putu told BenarNews.

Budi expressed disappointment.

“I am innocent and cannot accept the verdict,” he said.

Lawyer Ahmad Rifai said the picture showing what looks like the PKI symbol on the banner could not be called a symbol of communism, adding that “the verdict has threatened democracy in Banyuwangi”.

Budi has seven days to decide if he will appeal.

Herlambang P. Wiratraman, the chief of the Centre for Human Rights Law Studies at Airlangga University in Surabaya, agreed with Rifai.

“The stigma of communism became the easiest tool to stop activists who resisted mining in Banyuwangi,” he said.

‘Judicial repression’
Amnesty International (AI) Indonesia also condemned the verdict, calling Budi a prisoner of conscience.

“This is a form of judicial repression against the constitutional rights of citizens to have opinions.

“A higher judicial authority” should immediately release Budi because he had “fought for the preservation of the environment and the rights of the people around Tumpang Pitu Mountain Protected Forest,” AI Indonesia director Usman Hamid said in a written statement.

“The judge should protect fundamental rights, namely the right of expression guaranteed by the constitution” by releasing Budi, Usman said.

In September, after Budi was arrested, fellow activist Agnes Dave questioned the authenticity of the banner.

“Local police and residents were also there. If the activists made such a banner displaying the hammer and sickle, they would have been aware. Police could have stopped the protest and arrested anyone joining in,” she said at the time.

Protesters gathered
While Budi was inside the courtroom learning his fate, hundreds of his supporters and anti-communist protesters gathered outside as police officers armed with a water cannon watched over them.

Members of the Anti-Communist Revival Movement (GAKK) said they supported the guilty verdict and sentencing.

“This is a proof that in Banyuwangi there is indeed a new style of communist revival,” said H. Abdillah Rafsanjani, an organiser of the GAKK protests.

Communism was declared illegal in Indonesia after PKI sympathizers allegedly killed 62 members of Ansor, the youth wing of the largest Indonesian Muslim organisation, Nahdlatul Ulama, on October 18, 1965.

Human rights organisations estimate that between 500,000 and 1 million Indonesians died during nationwide killings that targeted suspected PKI members in 1965 and 1966.

The President of the Autonomous Bougainville Government, Chief Dr John Momis, has announced an indefinite moratorium on exploration and mining in Panguna.

He said the Bougainville Executive Council had its meeting on Wednesday made a “thoughtful and considered” decision to impose an indefinite reservation moratorium from any exploration or mining over Panguna in the best interest of the landowners and the people of Bougainville.

The council debating the issue following advice from the Bougainville Mining Advisory Council.

“It is with much regret that the basic requirement for obtaining the landowners consent under the Bougainville Mining Act 2015 could not be met,” Momis said.

The voice of the Panguna landowners was clearly heard during the mining warden hearing that decided in a narrow split between those supporting the mine reopening by Bougainville Copper Limited (BCL) and the opponents.

Dr Momis also said that to develop the mine by any other developer would be “untenable” under current circumstances.

“We will not allow this project once again to reignite the wounds of the Bougainville crisis and distract our focus for restoring peace and our preparation for our referendum in 2019,” he said.

Continued consultations
While imposing this Panguna moratorium, Dr Momis said his government would continue to consult with Panguna landowners and the people of Bougainville over an “appropriate arrangement” or best alternative models of development of the mine if the people still had an appetite to develop the mine in the future.

The Bougainville Civil War was fought in 1988-1998 between Papua New Guinean military forces and secessionist guerrillas of the Bougainville Revolutionary Army (BRA).

The conflict led to an estimated 15,000-20,000 deaths on Bougainville before a peace agreement was brokered by New Zealand in 1998. This led to the establishment of the Bougainville Autonomous Region Government.

Bougainvilleans are due to vote in a referendum on possible independence in June 2019.

• More Bougainville stories

The Indonesian government’s decision to allow one of the world’s largest copper and gold mines to operate in Papua province until 2041 has prompted local indigenous leaders to remind officials that their people never gave up land ownership and want a role in negotiations.

On Tuesday, the US-based firm Freeport McMoran announced it was giving up a majority of its ownership in Papua’s Grasberg mining complex in exchange for being allowed to operate there for up to 24 more years.

“We indigenous Papuans, especially from the Amungme and Kamoro tribe communities, have never released our ancestral lands to any party, neither to the government of Indonesia nor Freeport,” John Gobay, a chairman of the Customary Council in Paniai, a district in Papua province, said.

Two weeks ago, he met with Indonesian President Joko “Jokowi” Widodo in Jakarta, where Gobay expressed concerns about issues involving Freeport’s operations at the Grasberg complex.

He said neither the Amungme nor Komoro were seeking a share of the mine, but they should be valued as the owners of the mountain where Freeport has been operating for decades.

“We own the mountain and the land and the state has recognised it under the state 1945 Constitution and Law No. 21 of 2001 on Papua Special Autonomy,” Gobay said.

Freeport-McMoran agreed to divest 41.64 percent of its Indonesian subsidiary, PT Freeport Indonesia (PTFI), at a fair market price to allow 51 percent ownership by Indonesian interests.

Freeport’s share of the company is 90.64 percent while the Indonesian government holds the other 9.36 percent.

‘Positive for stakeholders’
“Reaching this understanding on the structure of the mutual agreement is significant and positive for all stakeholders. Important work remains on documenting this agreement and we are committed to completing the documentation as soon as possible during 2017,” Freeport chief executive Richard C. Adkerson said in a news release.

As part of the agreement, Freeport agreed to construct a smelter in Indonesia by 2022, thereby lifting a government threat to ban the company from exporting unrefined copper.

The smelter is estimated to cost US$2 billion and is a major concession for his company, Adkerson told the Wall Street Journal.

The government is not likely to have the financing to buy all of Freeport’s share being put on the market, so the divestment could be spread across many potential buyers, analysts told the Journal.

Finance Minister Sri Mulyani Indrawati Energy and Mineral Resources Minister Ignatius Jonan represented the Indonesian government and Adkerson represented Freeport at a news conference in Jakarta on Tuesday where both sides announced the agreement.

Ignatius said Indonesia had agreed to extend Freeport’s licence, which ends in 2021, by 10 years to 2031, and another 10 years to 2041 if the company met the contract’s requirements, including the smelter.

“The negotiation between the government and Freeport began in early 2017. But in the last three to four (days), the talks got intense and the two sides found an agreement,” Ignatius said.

Adkerson said Freeport would honour the agreement.

“We appreciate the leadership of President Joko Widodo and we have been listening carefully to what the government wants and its objectives,” he told the news conference.

Papuans demand role
But because Papuans own the land in and around the mining complex, they should have a role in the upcoming negotiations involving the purchase of company holdings, said Ruben Magay, a member of the Papuan Regional Legislative Council (DPRP).

“This is the time for the government to involve land owners in determining Freeport’s investments,” he said.

“There are three parties, the central government/local government, investors and indigenous people.”

He said discussions regarding Freeport should be clear on what percentage is for investors, what percentage is for the government and how much is for the indigenous people.

“During Freeport’s first work contract in 1967, until the second work contract in 1991, and this most recent one, the position of indigenous people has been unclear. The discussion has been between the central government and the investor, in this case, America,” Magay said.

Gobay expressed hope that Jokowi would hold a special negotiation session attended by the government, Freeport and the representatives of Amungme and Komoro tribes.

“If not, we will report it to the United Nations through the indigenous representatives and we will contest Freeport and the central government for not complying with its own regulation,” Gobay said.

Victor Mambor is a leading Papuan journalist and editor of Tabloid Jubi.

• More West Papuan stories

Pacific Media Centre News Desk

Panguna women protesters have blockaded the copper mine to prevent the signing of a memorandum of understanding by the Bougainville government with the company and also won a court injunction.

Justice Kandakasi ordered in the Waigani National Court on Friday that the MOA cannot be signed until further notice.

Philip Miriori, chairman of the Special Mining Lease Osikaiyang Landowners Inc., welcomed the restraining order.

He said it was good to see that protection from “unjust deprivation of property” under Section 53 of the Constitution of PNG – and preserved in the Constitution of the Autonomous Bougainville Government (Section 180) as adopted by the Bougainville Constituent Assembly at Buin on 12 November 2004 – was being enforced.

The Bougainville Freedom Movement also congratulated the women of Bougainville and their supporters for stopping the Bougainville government on Friday from signing a new agreement for Bougainville Copper Limited (BCL) to reopen the Panguna mine.

“The handpicked BCL landowners who were supposed to sign the agreement for the company were brought to a halt, thanks to the road block protest held on Friday,” said BFM’s Vikki John.

The Panguna mine was abandoned by in 1989 after frustration by landowners erupted into a decade-long armed uprising and a push for Bougainville independence from Papua New Guinea.

‘Seven sisters’ roadblock
Loop PNG reports: “The impenetrable roadblock was led by women chief from the ‘seven sisters’ areas in Central Bougainville.

The mothers, together with their daughters, youths, ex-combatants and Bougainville hardliners, set up the roadblock, which started on Thursday night and lasted throughout Friday. They refused to move for passing vehicles or negotiating team.

“Their message was simple: ‘No BCL, No Mining’.

A woman chief from Guava Village, Maggie Mirau Nombo, and a chief from Arawa and Pirurari, Kavatai Baria, said their land was their ‘Mother’, who provided their everyday needs and no one was allowed to exploit her.

“Chief Maggie, who is a former primary school teacher, said how could those wanting to sign the MOA conduct such an act of injustice?

“She said this would never happen again because they had suffered enough from all the injustice that had been brought on by BCL when it was in operation.

“She said God had heard the cry of the Bougainville women, and justice would prevail.

“As long as I am the Chief from Panguna and Guava Village and owner of my land, BCL is not welcome. This is the company that has killed our sons and daughters. ABG has to stop ignoring the cries of the women and take note that BCL is never allowed to come back to Panguna, and this is final and it is not negotiable,” she said.

“Chief Kavatai also reminded everyone that ‘when God closes a door, no one can open it, and if God opens a door, no one can close it’.

“Panguna Mine was closed by God and if anyone was trying to reopen the mine when it wasn’t God’s timing, then they had better watch out because they were fighting against a big God.

“Because of the strong opposition by the women, youths and Bougainville hardliners, the high-powered ABG delegation, led by President John Momis, returned to Buka on Friday afternoon without signing the MOA.”

The Papua New Guinea 2017 general election is June 24 until July 8.

• Panguna women landowners say BCL didn’t consult and ‘isn’t welcome’

Pacific Media Centre News Desk

Papua New Guinea’s Catholic Church cardinal has given a resounding “no” to deep sea mining after returning from his visit to Germany.

The Archbishop of Port Moresby Archdiocese, Cardinal John Ribat, was highly critical of the proposed plans of the Canadian mining company Nautilus for the Pacific.

He spoke to a global conference as a representative for Oceania on the effects of climate change in the Pacific.

Cardinal Ribat was encouraged with the support he received when visiting the office of Chancellor Angela Merkel.

He said the Catholic Church was against deep sea mining because it would cause destruction to the surrounding environment.

He condemned the “shocking” robot machinery planned for the mining.

He said it would also not contribute to coping with climate change.

Indigenous people on a small Christian majority island in Indonesia’s North Sulawesi province are claiming victory after the government revoked a Chinese company’s mining licence.

Ignasius Jonan, Minister of Energy and Mineral Resources, the only Catholic minister in President Joko Widodo’s cabinet, recently revoked the licence of Mikgro Metal Premium (MMP), which wanted to mine for iron ore on Bangka Island.

The revocation followed the end of a legal battle begun by the Kauku, the island’s indigenous population, who claimed the mining operation was illegal.

Opposition to the mine, which covered almost half the total area of the island, began as soon as the firm obtained a licence in 2014.

The islanders filed a lawsuit in which they claimed the mine violated Indonesia’s 2007 Law on Management of Coastal Areas and Small Islands, which forbids mining on islands under 200,000 hectares.

Bangka Island is less than 5000 hectares.

The lower courts and the Supreme Court all ruled in favor of the islanders.

Fruit of hard struggle
Merah Johansyah, coordinator of Mining Advocacy Network (JATAM) who assisted the Bangka people, said the licence revocation was the fruit of the community’s hard struggle.

“Although the company has not yet started mining the ore, building facilities to prepare for the production process had caused environmental damage,” he said.

Forest areas have been damaged, while “land has been cleared, mangroves have been buried and coral reefs destroyed to build roads, a port and warehouses,” Johansyah said.

Maria Taramen, from Nature Lovers Group, a local NGO on Bangka, said the company’s presence severely disrupted people’s lives.

“Many families were fighting with each other because of differing opinions about the mine,” she said.

Ulva Novita Take, a resident of Lihunu, a village on the island, said the whole operation was threatening the livelihood of fishing communities.

“It was a threat to coral reefs and marine life, and we depend on that,” he said

The island has a population of about 2400 people with 70 percent being Protestant.

According to the Ministry of Energy and Mineral Resources, Indonesia has issued 9721 mining licences.

However, JATAM says about 1890 of them are in violation of the law because they are on small islands under 200,000 hectares.

Ryan Dagur writes for UCANews.

A bishop in Papua has called for government aid for thousands of Papuans made jobless because of a bitter contractual dispute between the government and U.S.-based mining giant PT Freeport McMoran Inc.

The row, which has reduced operations at the world’s second biggest copper mine in Papua’s Mimika district by about 60 percent, stems from Indonesia seeking to change mining industry regulations over ore processing and foreign ownership.

The government wants to cap copper concentrate exports to boost its domestic smelting industry.

Freeport says the regulations breach its current contract with the government, which runs until 2021. The company says the rules would also affect contracts it has with its customers overseas.

However, the dispute has resulted in job losses for contractors and workers.

“The company has laid off more than a thousand workers. It also threatens to reduce ongoing programs offered to the local community, such as scholarships and health-care services. This is a problem,” Bishop John Philip Saklil of Jayapura said.

The prelate recalled that he and some Papuans owning indigenous land rights, known as hak ulayat, met with Energy and Mineral Resources Minister Ignasius Jonan on February 27 in Jakarta to find a solution to the problem.

People victimised
“Such a lay-off has victimised many people who depend solely on the company. Many other Papuans, benefit from the programmes,” he said.

According to the local Manpower, Transmigration and Public Housing Agency nearly 1100 workers were laid off as a result of the dispute.

“They dreamed of a good future but then were laid off. Many still have debts to pay. It is not easy for them. Now everyone is worried about their future,” Bishop Saklil said.

A local tribal leader said laid off indigenous people could revert to old traditional activities like hunting to get by, but mining activities have caused havoc with the local ecosystem.

“Due to polluted waters, their feet and hands start to hurt when they go into rivers. Also, animals living in or near rivers have died. So how can we hunt to live?” Amungme tribal leader Yanes Natkimu said.

• Papuan students call on Indonesia to close Freeport mine
• Freeport’s arbitration threat simply ploy to block mining reform

Both groups held the protests on Friday under tight police security, as Papua protests over Freeport took place at several other places across Indonesia.

Scores of demonstrators from the AMP and the Indonesian People’s Front for West Papua (FRI-West Papua) unfurled banners and conveyed a number of demands, including the closure of the PT Freeport gold and copper mine in Papua.

They also brought banners with demands such as, “A joint action to support the Papua problem at the United Nations Human Rights Council” and “Close and Expel Freeport”. Protesters took turns in giving speeches.

The spokesperson for the AMP and FRI-West Papua, Wilson, said that the action represented Papuan society’s anxiety saying there are so many violations at PT Freeport that it was creating ever more misery in the land of Papua.

“The natural resources belong to the Papuan people, but up until now they have not been enjoyed by the Papuan people”, said Wilson.

The action also demanded the right for and self-determination for the nation of West Papua. The groups also demanded a resolution to human rights violations in Papua and the withdrawal of the Indonesian military from the land of Papua.

Counter action
Meanwhile, five people calling themselves the Malang City Darul Hikmah Kebonsari Foundation Islamic Boarding School Religious Pupils said they were there to counter the action which they believe threatened the disintegration of Indonesia.

“Our action is intended to counter them”, said Widoku Rahman, one of the religious pupils taking part in the rally.

The religious pupils claimed that would continue to monitor actions by the AMP who they believe is promoting separatism because of their demands for independence. The group supervised the action from the beginning until the end.

“Please if you want more information contact the head of our boarding school”, said Hadi Widiyanto, one of the other religious pupils.

During the action the five religious pupils unfurled red-and-white Indonesian flags on their chests. They wore long white shirts, white sarongs, white skull caps and sandals.

Although one of the participants brought a megaphone, it was not used for a speech.

• AWPA calls on Turnbull to raise West Papua human rights violations with Jakarta

KBR audio report on the Jakarta protest in Bahasa.

In Ade Irmansyah, Jakarta, KBR reported that action coordinator Samsi Mahmud said taking the issue to the United Nations was the only way to resolve the numerous problems in Papua, particularly human rights violations.

Samsi also urged the government of President Joko “Jokowi” Widodo to give the Papuan people the right to self-determination.

“We also want to convey to the people of Indonesia, to the Indonesian government, the wishes of the Papuan people, namely that self-determination is the democratic solution for the future of our people and our nation. And for us, in relation to the problems that exist in Papua, the solution is self-determination for the Papuan people”, he said in a speech in front of the United Nations representative office for Indonesia in Jakarta.

Samsi also called on the government to withdraw all military forces, including the police. from the entire Papuan territory saying that the presence of military forces was causing human rights violations in Papua.

Similar rallies were also held by the FRI West Papua in Ternate (North Maluku) and by the FRI West Papua and the AMP in the Central Java city of Yogyakarta.

Translated by James Balowski for the Indoleft News Service.

“Yes, they [the administration] will get [the shares]. The percentage of shares will be discussed later,” Luhut said after meeting Mimika Regent Eltinus Omaleng in Jakarta on Tuesday as reported by tempo.co.

Luhut said the central government would also discuss with relevant parties the mechanism for which the shares would be transferred to local administrations.

READ MORE: Indonesia stands firm as Freeport mine threatens to cut production

Meanwhile, after the meeting, Eltinus said Luhut mentioned the figure would be between 10 percent and 20 percent, which Luhut said had been demanded by the regent.

Eltinus said the shares for Papuans would be distributed to the Papua administration, Timika administration and the people holding rights to customary communal land near the copper and gold mining site.

President Joko “Jokowi” Widodo signed on January 11 Government Regulation (PP) No. 1/2017, a revision to PP No. 23/2010 on the implementation of the mineral and coal mining business.

Under the regulation, mining companies are required to construct a smelter as a precondition for them to export the concentrates.

The companies, including Freeport, are also required to change contracts of work (CoW) to a special mining licence (IUPK). With the IUPK, foreign companies are also required to divest 51 percent of their shares.

Bougainville News reported Masono was from the Carteret Islands and is a first term MP in the Autonomous Bougainville Government (ABG) and the Member for the Atolls Constituency and Minister for Public Service.

Prior to his entry into politics, Masono had a distinguished career in the Bougainville Public Service and held several senior positions, including Acting Chief Administrator, Deputy Chief Administrator Policy and Director for Panguna Negotiations.

“I want to express my sincere gratitude on behalf of the Atolls people for the President’s confidence in appointing me as his new Vice-President,” Masono said at the swearing in.

“I accept this appointment with great humility, for me personally it is a great honour to serve as the Vice-President of one of the founding fathers of this nation and I want to assure the President and the people of Bougainville of my undivided loyalty and continued support to the President and ABG,” Masono said.

However, the Bougainville Freedom Movement (BFM) put out a statement condemning the appointment as not helping Bougainville’s independence from mining companies. It said:

“The young and easily influenced [former] Vice-President Patrick Nisira made it clear in March 2016  that the Autonomous Bougainville Government (ABG) knew that the decision on the future of the mining moratorium on Bougainville was a major concern and ‘that there should be wide public debate on the issues involved’.

‘Don’t have the funds’
“This was reiterated again, as stated by Patrick Nisira in his public leture on 28 April 2016 in Canberra.

“Yet in his next breath, Patrick Nisira advised: “But we don’t have the funds necessary for an extensive public awareness and consultation programme.”

“Now, his replacement, Raymond Masono, Director of the Office of Panguna Negotiations, Autonomous Bougainville Government (ABG), who originates from the Atolls, gave a lecture at  the University of Queensland’s “Institute for Sustainable Mining” on 16 December 2014.

“Under the influence of the University of Queensland’s “Institute for Sustainable Mining”, Mr Raymond Masono made it quite clear that, “Alternative Benefit Sharing Modality for a Redeveloped Panguna Mine in Bougainville, PNG”.

“Benefits from a redeveloped Panguna mine must contribute to the overall social and economic development of the all Bougainvillians, not just the mine affected landowners.

“This requires the design and implementation of a benefit sharing modality that ensures everyone shares in the nation’s wealth. The Office of Panguna Mine Negotiations has been established to coordinate the Autonomous Bougainville Government (ABG) and Panguna mine affected Landowners preparations to negotiate the possible reopening of Panguna Mine in the Autonomous Region of Bougainville.

“President Momis, it certainly would be better that you represent your people rather than mining companies don’t you think?, asked the BFM.”

Patrick Nisira will remain as the Member of the Halia constituency until he formally resigns from the Bougainville House of Representatives to contest this year’s general election.

“PT Freeport Indonesia [FI] reserves all its rights […] including the right to commence arbitration to enforce all provisions of the contract,” Freeport-McMoRan’s CEO Richard C. Adkerson claims, referring to a protracted dispute with the Indonesian government.

That threat made on Monday is quite similar to those made by many other multinational companies, which fear decreases in their huge profits following reforms by their host governments.

Until around eight years ago, international arbitration within the investor-state-dispute settlement (ISDS) mechanism had become a powerful weapon exploited by multinationals to circumvent national regulations and “bully” governments, notably in developing countries, to postpone or annul any reform or to silence environmental NGOs.

At the time of its launch several decades ago, ISDS was indeed vital to encourage foreign investment into developing countries where legal systems were still weak and where many governments were corrupt. It was a forum designed to resolve conflicts between investors and host governments.

ISDS has therefore been written into bilateral investment and trade agreements or treaties. One of the most popular arbitration tribunals is the Washington-based International Center for Settlement of Investment Disputes (ICSID), a unit of the World Bank.

The ISDS mechanism allows foreign investors to bypass local courts and seek compensation in international tribunals such as the ICSID, for what they claim to be damages caused by expropriation or policy or contractual changes by host governments.

The problem is that within the ISDS scheme only investors or companies can bring lawsuits. A government may defend itself but it cannot sue a company. The mere threat of an ISDS claim by big MNCs can alarm host governments, especially those with bad international reputations, to act in favor of the investor.

Powerful threats
An 18-month study in 2014 and 2015 by the BuzzFeed News online platform on arbitration cases within the ISDS system in Indonesia, India, Africa, Central America and the United States, involving the inspection of tens of thousands of pages of legal documents, revealed how big corporations have turned the threat of ISDS legal action into a fearsome weapon to enable them to have their demands met by host governments in developing countries.

Under the ISDS scheme there seemed no longer a balance between protection of investors and the right of governments to regulate.

It was as striking for its power as for its secrecy, with its proceedings. Of all the ways in which ISDS is used, the most deeply hidden are the threats, uttered in private meetings or ominous letters that invoke those courts, the BuzzFeed study concluded.

The threats are so powerful they often eliminate the need to actually bring a lawsuit. Just the knowledge that it could happen is enough.

Arbitrators who decide the cases are often drawn from the ranks of the same highly paid corporate lawyers who argue ISDS cases. These arbitrators have broad authority to interpret the rules however they want. And there is no meaningful appeal.

Especially for Indonesia, which still grapples with many mining contracts awarded under the authoritarian Soeharto administration (1967-1998), the mere threat of an ISDS claim could trigger alarm.

Indonesia suffered the pang of an international arbitration in 2000 when the government, groaning under the economic crisis, canceled a geothermal power plant contract with Karaha Bodas, a local subsidiary of two US companies, in West Java.

Balancing rights
But Karaha went to an international arbitration tribunal, which in December 2000, awarded it US$261 million, even though the company had not yet ploughed even half that amount into the project. In other words, Indonesia owed a quarter-billion dollars to a private company for electricity it would never receive, from a power plant that had not been built.

Formerly, the dominant view in ISDS circles was simply “the sanctity of a contract must be honored” as long as it was concluded with a legitimate government, however immoral, incompetent or corrupt the leader who signed the contract.

However the perception within international arbitration tribunals now no longer sees a corporate contract as being absolute but a balance between corporate rights and fairness, and, especially, overall economic benefits. When circumstances change after a contract was signed that make it impractical, or uneconomic or inefficient, to comply with contractual obligations, courts may relieve a party of its commitments.

The prevailing opinion now even tends to excuse parties, especially governments in developing countries, from fulfilling contracts if they were entered under compulsion (duress) or corruption or if one party is not competent and the terms of investment arrangements seem imbalanced.

Even the United Nations Conference on Trade and Development (UNCTAD) has criticised the ISDS regime as already going far beyond its original intention, as the system now suffers from a lack of coherence, consistency and predictability.

No wonder many governments in Asia, including Indonesia, Australia, Africa, Europe and Latin America, have decided to remove ISDS provisions from their investment or trade agreements because of the tendency of its mechanism to favor large foreign investors over national governments. Even within the ICSID there has been an increasing trend not to see corporate contracts as being absolute.

Last December an ICSID tribunal decided in favor of the Indonesian government in its dispute with mining firm Churchill, rejecting the British company?s claim over $1 billion in damages, after what the latter alleged to be the expropriation of its rights over huge coal reserves in East Kalimantan.

Vincent Lingga wrote this commentary for The Jakarta Post.

In a media release, Freeport Indonesia did not specify when Hakim, a retired air chief marshal, would officially step down.

However, it said he would move to an advisory role with the company.

“Serving as Freeport Indonesia president director involves an extraordinary commitment of time. I have decided it is in the best interests of Freeport Indonesia and my family to step down from my duties as president director while continuing to support the company in an advisory role,” Hakim was quoted as saying.

READ MORE: Freeport seeks to dodge piling problems as stalemate shuts production

Hakim’s resignation occurred as the company, a subsidiary of United States-based Freeport-McMoRan, fights against complying with the government’s latest mining policy, which stipulates that miners must convert their current contracts of work (CoWs) into special mining permits (IUPKs) in exchange for permission to continue exporting certain mineral ores and concentrates.

Freeport, which operates the huge Grasberg mine in Papua, has repeatedly said it would not agree to the contract conversion unless the government provided assurance of long-term investment stability, consisting of fiscal and legal certainty, in accordance with its CoW signed in 1991.

Freeport-McMoRan CEO and president Richard C. Adkerson thanked Hakim for his contributions to the company.

“We understand that this was a difficult decision for Pak Chappy to make. We appreciate his service to our company and his support. We look forward to his continued advice and counsel,” he said.

Chappy Hakim, also known as an aviation industry expert and prolific writer, was appointed as Freeport Indonesia’s top executive in November.

The company previously appointed retired military officer Air Vice-Marshall (ret.) Maroef Sjamsoeddin as president-director.

Gold and copper miner PT Freeport Indonesia, the country’s largest taxpayer and oldest foreign investor, is in for another rough ride as it struggles to fight the government’s demand to divest controlling ownership and resolve allegations of legislative contempt.

Reuters reports that all work has stopped at Freeport’s Grasberg mine and its workers are planning a demonstration against the government’s move last month that halted exports of copper concentrate to boost domestic industries, a union said.

A prolonged stoppage at the world’s second-biggest copper mine would support copper prices, near 21-month highs this week, but would also deny the Indonesian government desperately needed revenue from one of its biggest taxpayers.

READ MORE: Freeport says it hasn’t agreed on new contract

Freeport’s headache intensified last week when the Energy and Mineral Resources Ministry claimed the company had agreed to convert its contract of work (CoW) to a special mining licence (IUPK), and required it to divest 51 percent of its shares and construct a smelter.

In exchange, the government allowed the company to resume its exports of copper concentrate to prevent massive layoffs in its operations in the backwater regency of Timika in Papua, where Freeport has been operating for more than five decades.

The government has claimed its recent policy to continue the relaxation of raw and partly processed mineral exports, which many analysts and politicians deemed as against the law, has profited Freeport because the company can continue with exports despite its questionable commitment to construct a smelter in Indonesia to process its products.

While Freeport has indicated it will fight against the share divestment while agreeing to other demands set out by the government, Energy and Mineral Resources Minister Ignasius Jonan has not blinked and insists the company has to comply.

“Why are they refusing the divestment rule? The shares will later be bought by the government or the government’s partners. What is exactly the reason behind the company’s reluctance?” Jonan said.

Freeport, a local unit of politically wired US mining giant Freeport McMoRan Inc. (FCX), said it would not agree to the contract conversion unless the government provided a long-term investment stability assurance, consisting of fiscal and legal certainties, in accordance to its CoW signed in 1991.

“Freeport Indonesia will keep working with the government to find the best possible solution for both sides. However, no agreement has yet to be made as of today,” Freeport Indonesia spokesperson Riza Pratama said.

Under the CoW, Freeport is required to sell 51 percent of its stake to Indonesian entities by 2011, or 45 percent if it has sold a minimum of 20 percent in the local stock market.

However, a string of regulations were issued along the way that eventually allowed Freeport to dodge the requirement to this date, where very few officials have made a fuss. FCX owns 90.64 percent of the company, while merely 9.36 percent is owned by the Indonesian government.

Full Freeport report

The Philippines is among the world’s top sources of metallic deposits like nickel. But in this Southeast Asian mining haven, love may have been lost between the Philippine government and the mining industry.

The country’s Department of Environment and Natural Resources (DENR) has ordered the closure of 23 mines and the companies operating them, plus suspending five others. The firms’ closures and suspensions were recommended by experts who conducted mining audits for the DENR between July and August 2016.

The audits were done in response to reports of these mining firms’ compliance or non-compliance with prevailing regulations on responsible mining and maintaining of environmental standards.

Philippines’ Environment Secretary Regina Lopez is in hot water from the mining industry given her closure and suspension orders, all announced in early February.

Policy and legal battles related to the months-old government of President Rodrigo Duterte have triggered a closer watch on the mining issue.

Mining sector protests
The controversy erupted after February 2 with the announcement of the cancellation and suspension orders by Lopez. Six days later, Lopez had signed the cancellation and suspension orders of the 28 affected companies.

The DENR also released results of the mining audit online explaining why the firms’ mining operations were ordered cancelled or suspended.

Protests followed from the mining sector, especially the industry association Chamber of Mines of the Philippines (COMP). The group said an estimated PhP70 billion (NZ$1.9 billion) in gross production value and some P20 billion (NZ$556 million) in taxes would be lost because of these closure orders, and some 67,000 workers may be displaced.

The COMP said the orders were released “without due process,” but Lopez said  on February 10 that DENR “meticulously observed due process.”

Lopez was referring to the work of the multi-sectoral audit teams that looked at the mining projects in the identified areas. Experts from the central and regional offices of the DENR; from the DENR attached agencies like the Mines and Geosciences Bureau (MGB), Environmental Management Bureau (EMB), the Biodiversity Management Bureau (BMB and the Ecosystems Research and Development Bureau (ERDB); experts from the Departments of Health and Agriculture; and representatives from various civil society organisations conducted the audits.

The multi-sectoral audit teams, Lopez explained, used criteria on the requirements of the different mining and environmental laws of the country. The teams also did cross-auditing, with auditors who reviewed the projects come from another Philippine geographical region. Lopez added the teams also staged entry and exit conferences with stakeholders, including the mining companies.

Seven days were given to the companies to respond to the technical results of the audits and the “show cause” orders. Afterwards, and spanning five months, a technical review committee conducted further review on the companies’ replies to the audit teams’ reviews

Bombardment
After the February 2 announcement from Secretary Lopez, COMP sought the help of the economic managers of Duterte’s cabinet, including Finance Secretary Carlos Dominguez who co-chairs with Lopez an inter-agency Mining Industry Coordinating Council (MICC).

On February 9, Secretaries Lopez and Dominguez — as MICC co-chairs— decided to form a multi-stakeholder committee that will review and advise DENR on Philippine mining operations, to include the recent decisions handed out to the 23 closed and five suspended mining firms.

The mining companies had operations in identified mining hotspots of the country, such as Benguet province (north of Manila, in Luzon island), Zambales province (in the western part of Luzon island), Surigao del Sur (in eastern Mindanao island), Dinagat Island (also in eastern Mindanao), and Eastern Samar (in eastern Visayas region).

Zambales province saw four mining companies —BenguetCorp Nickel Mines, Inc., Eramen Minerals, Inc., LNL Archipelago Minerals, and Zambales Diversified Metals Corp — ordered closed due to alleged illegal logging activities, and for conducting mining operation near a river that had led to siltation in the municipality of Sta. Cruz. Nickel is said to be being extracted there close to a watershed.

Seven mining firms operating in Dinagat Islands were also ordered closed for a build-up of silt on coastal waters: AAM Philippines Natural Resources Exploration, Krominco, Inc., SinoStell Philippines H.Y. Mining Corp., Wellex Mining Corp., Libjo Mining Corp., and Oriental Vision Mining Corp.

In Surigao del Sur province, a further seven mining firms were ordered closed, also for silt in coastal waters and for mining in watersheds: ADNAMA Mining Resources Corp., Claver Mineral Development Corp., Platinum Development Corp., CTP Construction and Mining Corp., Carrascal Nickel Corp., Marcventures Mining and Development Corp. and Hinatuan Mining Corp.

Companies Mt. Sinai Exploration Mining and Development, EMIR Mineral Resources and Techlron Mineral Resources, with operations located in Eastern Samar, were also ordered closed not only because of the siltation of coastal waters, but because of the destruction of a functional watershed.

Mining audits
Apart from the 23 firms whose operations were ordered cancelled and closed by DENR, five other firms were given suspension orders. These are Berong Nickel Corp., OceanaGold Phils., Lepanto Consolidated Mining Corp., Citinickel Mines and Development Corp. and Strong Built Mining Development Corp.

DENR conducts mining audits on a regular basis. Some of the firms whose licences were cancelled by Lopez were suspended in previous years and were asked to respond to findings of mining audits.

Some of the firms were also listed in the Philippine stock market, as a few others are joint ventures by a Philippine and a foreign company. For example, Zambales Diversified Metals Corp. is a joint venture between Filipino-run D.M. Consunji Inc. (DMCI) Mining Corp. and the Australia-headquartered Rusina Mining Corp.

Another closed firm, Oriental Synergy Mining Corp., was established by Qishu Mining Corp., a subsidiary of Qishu Enterprises with headquarters in Fujian, China.

Suspended company OceanaGold Philippines, for its part, is a subsidiary of OceanGold Corp., a mid-tier multinational gold producer with assets found in the Philippines, United States and New Zealand.

Other mining companies were also sued by local residents through the writ of kalikasan (nature), a legal remedy provided by the country’s constitution for anybody to sue those who allegedly violate environmental laws and cause environmental havoc.

Lopez alleged last Thursday that some mining firms had links to local politicians, allowing the industry to flourish.

High stakes
The Philippines houses the world’s leading supply of nickel, as it was estimated by the MGB that some PhP54.9 billion (NZ$1.53 billion) of nickel products were produced in 2015.

Nickel prices at the London Metal Exchange’s LMEX Index actually rose to a 16-month high last November 2016. But the stainless steel alloy’s performance at the LMEX dropped again since January, and the price of nickel rose to over-US$10,400 per tonne last Feb. 3 given Lopez’s closure order.

There are 40 metallic mines (including 27 nickel mines) and 62 non-metallic mines in the Philippines, not to mention five processing plants, 16 cement plants, and 2397 small quarries and sand and gravel operations. The Philippines’ mining operations are governed by the 1995 Philippine Mining Act, with some 9 million ha. of land identified to have “high mineral potential” says the MGB.

MGB data shows that the Philippines earned some US$2.8 billion (NZ$3.9 billion) in exports of minerals to Japan, Australia, Canada and China. The Philippines’ minerals industry is currently employing an estimated 236,000 workers, with a job in the mining sector said to be providing four indirect jobs. Mining companies had also paid some PhP25.78 million (NZ$717.2 million) in taxes in 2015.

But a report by the country’s National Economic and Development Authority (NEDA) showed that the mining and quarrying industry contributed only less than a percent — 0.7 percent— of the country’s gross domestic product during the period 2000 to 2015. The sector also contributed 5.6 percent of total exports in the same 15-year period, as the mining sector also generated an average of 236,400 jobs from 2011 to 2015.

The Philippines is said to have as many untapped mineral deposits, according to industry experts.

COMP said in a strongly-worded February 7 statement that Lopez “has trained her guns on the legitimate (mining) operations, while turning a blind eye to un-permitted, undocumented, non-tax paying and non-compliant mining operations who are the real violators of the environment.”

‘Pose a danger’
Lopez’s closure and suspension orders, COMP said, “pose a danger to other industries” like logistics, processing companies, manpower and transportation service providers and even the education and health sectors.

“The country needs minerals and environmental policies to be handled with technical competence and sensitivity to the complexities of the issues,” COMP wrote. “We respectfully appeal to… President Duterte to thoroughly review the actions of (Lopez)… and their serious repercussions as a whole as they are without basis and legality.”

The environment secretary, a member of the Lopez family that runs a gamut of Philippine companies found in the media, power generation and distribution and energy sectors, however claimed to have the support of President Duterte.

She also wanted to prove a “green economy” model that, Lopez claims, “can provide more jobs than destructive mining.”

“My issue is not about mining,” Lopez said February 5. “My issue is about social justice.”

The closed and suspended firms have 15 days, possibly before February ends, to respond to the DENR’s cancellation and suspension orders.

Assistant Professor Jeremaiah Opiniano is coordinator of the undergraduate and graduate journalism degree programmes of the University of Santo Tomas (UST) in Manila, Philippines.

The Indonesian government has approved the conversion of the contracts of gold and copper miner PT Freeport Indonesia and copper producer PT Amman Mineral Nusa Tenggara, allowing them to continue exports of their partly processed minerals.

As required by a revised government regulation that has partly lifted the ban on the export of raw and partly processed minerals, the two companies have converted their contracts of work (CoW) into special mining licences (IUPK).

The Energy and Mineral Resources Ministry stated that Amman Mineral and Freeport Indonesia had submitted proposals to convert their CoW into IUPK on January 25 and 26, respectively.

READ MORE: Indonesia stands firm as Freeport mine threatens to cut production

Amman Mineral has recently been taken over by local energy firm PT Medco Energi Internasional, owned by politically wired tycoon Arifin Panigoro, from the United States-based miner Newmont Mining Corp., while Freeport Indonesia is a subsidiary of another American giant mining company Freeport-McMoRan Inc.

“Today, the Energy and Mineral Resources Ministry has approved the conversion of Freeport and Amman’s CoW into IUPK,” the ministry’s mineral and coal director general, Bambang Gatot Ariyono, said on Friday.

“Furthermore, we expect those companies to immediately submit proposals for export permit extensions so that we can process them right away.”

Bambang also said the proposals needed to be submitted along with written integrity pacts consisting of commitments and detailed plans to build a smelter, the progress of which will be monitored every six months.
Last month, the government relaxed the ban on mineral exports in returns for miners’ commitment to convert their CoW into IUPK, divest 51 percent of their shares and build a domestic smelter.

“The two companies must also comply with the requirement to sell their shares,” said Bambang, declining to elaborate on the subject of divestment.

The requirements are stipulated in two ministerial decrees as derivatives of the fourth revision of Government Regulation No. 23/2010 on the management of mineral and coal businesses, which allows miners to continue exporting copper concentrates, certain amounts of low-grade nickel and washed bauxite.

Politicians and analysts have argued that the issuance of the regulation and the decrees contravene the 2009 Mining Law, which originally imposed a total ban on mineral ore exports in 2014 and mandated all miners to build smelters domestically to strengthen the processing industry.

However, up to now, Freeport Indonesia and Amman Mineral have shown no significant progress in their smelter developments.

Now that the companies have obtained their IUPK both of their CoW have automatically been annulled and they are obliged to comply with fiscal policies stipulated in the prevailing law in return for their export permit extensions.

The Finance Ministry’s fiscal policy head, Suahasil Nazara, said the government had finalized the revision of a 2014 finance ministerial decree on raw mineral export duties, with the new rates to be based on the smelter-construction progress.

Export duty revision
Under the revision, if smelter progress is between 0 and 30 percent, the export duty will be 7.5 percent, while if the progress is between 30 and 50 percent the duty will be 5 percent and for 50 to 75 percent progress, the duty will be 2.5 percent.The export duty will be 0 percent only when progress passes 75 percent.

The export duties for both lowgrade nickel and washed bauxite will be 10 percent. However, Suahasil did not detail whether the rate was linked to the progress in smelter construction.

“A miner needs to submit a proposal to get the recommendation from the Energy and Mineral Resources Ministry for its export permit. Within such a recommendation, the ministry will state the progress of the smelter development, which will be our basis for setting the export duty for the miner,” Suahasil said, while adding that the duty would last in accordance to the export permit period.

Data from the Finance Ministry show that Freeport Indonesia and Amman Mineral paid Rp 1.23 trillion (US$92.1 million) and Rp 1.25 trillion, respectively, in export duty alone to the government throughout 2016.

Freeport Indonesia said recently it had begun preparing to reduce production, which could be followed by job cuts, in a move that indirectly pushed the government to grant the company the export permit.

• Freeport mining boss denies assaulting lawmaker

Freeport Indonesia director Chappy Hakim has denied assaulting a lawmaker after a hearing with the House of Representatives’ Commission VII in Jakarta.

According to reports, the former Air Force chief-of-staff had assaulted Commission VII member Mukhtar Tompo after a hearing with several representatives of mining companies, including Freeport, which operates the giant Grasberg copper and gold mine in Papua, to discuss the government’s mining policies.

“There was no beating, unlike what has been reported in the media. Mukhtar also said I never assaulted him,” Chappy said in a written statement.

While ministers are rushing to revise the regulations so miners that have committed to build smelters can continue to export ore concentrates, an intermediate product used to make copper, there is no guarantee that the deadline will be met.

The rules as they stand now only permit shipments of refined metal after January 11, Bloomberg reported.

Richard Adkerson, chief executive officer of Freeport-McMoRan Inc., the owner of the massive Grasberg mine in Papua province, said he was confident the issue would be resolved.

He told a conference in the US last week that without a resolution the company would have to cut back operations and potentially curb development of the underground mine where it was spending US$1 billion a year.

CRU Group, a consultancy, says the regulations will be changed.

“CRU’s view is that the rules will be revised and Freeport McMoRan will be able to continue to export Grasberg concentrates,” said Christine Meilton, principal consultant, copper supply and raw materials.

Disruption forecast
“Our base case forecast assumes that any disruption does not continue long enough to result in a cutback in production.”

Grasberg is the world’s largest mine in terms of copper capacity after Escondida in Chile, according to the International Copper Study Group.

Freeport says the deposit has the world’s biggest reserves of gold.

Any disruption could support prices of copper, which is the best performer among its peers this quarter, as banks from Goldman Sachs Group Inc. to Citigroup Inc. take a bullish view on the metal next year.

Indonesia is seeking to build a processing industry and prevent its mineral wealth from disappearing overseas.

While the rules allowed time for producers to build smelters, the government said that after three years shipments of semi-processed ores would no longer be permitted.

READ MORE: The 100bn gold mine and the West Papuans who are counting the cost

If the Carmichael mine goes ahead, it would be the biggest coal mine in Australia and one of the biggest in the world, the group said in a statement.

The annual emissions from burning the coal it produces would be similar to those of the whole of Malaysia or Austria, and more than New York City, 350.org Pacific said.

“With Fiji playing an important role in the process of implementing the Paris Agreement, the support by Australia for the continued expansion of the fossil fuel industry is a slap in the face of the vulnerable Pacific Islands.

“If the Australian government has seriously recognised the plight of the Pacific in dealing with climate change and rising sea levels, they must look at its complicity in the problem the Pacific is facing,” 350.org Pacific coordinator Koreti Tiumalu said.

“The most effective move the Australian government could take is to immediately say no to the Carmichael coal mine and urgently take the necessary actions required to move away from fossil fuels and transition to renewable energy.

“As the world’s largest coal producer and one of the biggest per capita climate polluters, Australia has a responsibility to act swiftly on climate.

Call for genuine action
“If Australia wants to be good regional neighbors they must demonstrate genuine action and tackle the causes of climate change, by neither allowing new coal mines nor pushing for the construction of new coal power stations.”

In the lead up to COP23, 350 Pacific and the Pacific Climate Warriors will continue to highlight Australia’s “inaction” on climate change and urge Pacific leaders to rally together and call on Australia to end its fossil fuel expansion.

“Our Pacific leaders must remain vigilant for the future of our Islands – they know what is at stake and have in fact called for a global moratorium on coal mines.

“Fiji’s presidency at COP 23 this year will be a chance for the Pacific to emphasise how Australia’s inaction on climate change speaks louder than words,” Tiumalu said.

350.org media release

In 1936, Dutch geologist Jean Jacques Dozy climbed the world’s highest island peak: the forbidding Mount Carstensz, a snow-covered silver crag on what was then known as Dutch New Guinea. During the 4800m ascent, Dozy noticed an unusual rock outcrop veined with green streaks. Samples he brought back confirmed exceptionally rich gold and copper deposits.

Today, these remote, sharp-edged mountains are part of West Papua, Indonesia, and home to the Grasberg mine, one of the biggest gold mines – and third largest copper mine – in the world.

Majority-owned by the American mining firm Freeport McMoRan, Grasberg is now Indonesia’s biggest taxpayer, with reserves worth an estimated $100bn (£80bn).

But a recent fact-finding mission (by the Brisbane Archdiocese’s Catholic Justice and Peace Commission) described a “slow-motion genocide” (pdf) taking place in West Papua, warning that its indigenous population is at risk of becoming “an anthropological museum exhibit of a bygone culture”.

Since the Suharto dictatorship annexed the region in a 1969 UN referendum largely seen as a fixed land grab, an estimated 500,000 West Papuans have been killed in their fight for self-rule.

Decades of military and police oppression, kidnapping and torture have created a long-standing culture of fear.

Local and foreign journalists are routinely banned, detained, beaten and forced to face trial on trumped-up charges. Undercover police regularly trail indigenous religious, social and political leaders.

And children still in primary school have been jailed for taking part in demonstrations calling for independence from Indonesia.

“There is no justice in this country,” whispered one indigenous villager on condition of anonymity, looking over his shoulder fearfully. “It is an island without law.”

****

Dozy had not set out to find gold in 1936; his goal was to scale the region’s highest glacial peak. But his discovery sparked the interest of Freeport Sulphur – later to become Freeport Minerals Company and then, through a 1981 merger with the McMoRan Oil and Gas Company, Freeport McMoRan – whose board of directors included the well-connected Godfrey Rockefeller (serving from 1931 until the early 1980s) and Henry Kissinger (1988-1995).

Today, indigenous tribes such as the Kamoro and the Amungme claim their communities have been racked with poverty, disease, oppression and environmental degradation since the mine began operations in 1973.

“We are a coastal people, and we depend on the environment,” says the Kamoro’s chief, Hironimus Urmani, in Tipuka, a lowland village down-river from the Grasberg mine.

“Nature is a blessing from God, and we are known by the three Ss: sago [trees], sampan [canoes] and sungai [rivers]. But life is very difficult now.”

Urmani motions to the river opposite, languishing green and motionless. He claims that tailing sediment from the mine has raised the riverbed, suffocating the fish, oysters and shrimp on which the Kamoro diet and economy are traditionally based. A 2012 report from Earthworks and MiningWatch Canada (pdf) asserts that mine waste from Grasberg has “buried over 166 sq km of formerly productive forest and wetlands, and fish have largely disappeared”.

‘We need to earn money’
Although most Kamoro still try to eke out a living fishing and foraging for food, they struggle to find paid work, says Urmani. “We need to earn money. But now we face major competition from non-Papuan migrants.”

Locals fear that the government’s controversial transmigration programme, which resettles Indonesians from high-density islands such as Java to low-population areas, is wiping out their population completely. Indigenous Melanesian Christians – they comprised 96 percent of the population in 1971 (pdf) – now make up a 48 percent minority, with numbers expected to fall to 29 percent by 2020 if migration rates continue.

Clashes between the indigenous Christians – and migrant Indonesian Muslims – have also resulted in riots, fires and injuries.

“Land has been taken away, directly by Freeport … and indirectly, as the Indonesian settlers have appropriated it,” says Dr Agus Sumule, professor of agricultural socio-economics at the University of Papua.

“The stresses [on indigenous people] are intense,” says Sumule. “They have been very negatively impacted.”

The Indonesian government signed over to Freeport the right to extract mineral wealth from the Grasberg site in West Papua in 1967. A 2002 report (pdf) from the International Institute for Environment and Development (IIED) details that land agreements were not negotiated with the Amungme until 1974, a year after the mine opened, and with the Kamoro in 1997.

The compensation paid for Kamoro and Amungme land has been mainly in the form of communal benefits, such as the building of homes, schools and places of worship. The IIED report notes, “Perceptions of land rights and historic compensation claims are a continuing source of dissatisfaction and conflict in the mining area.”

Recent census data shows Papua’s GDP per capita at $3510, compared to the Indonesian average of $2452. Yet Papua has the highest poverty rate in the country, nearly three times the national average. It also has the highest infant, child and maternal mortality rates in Indonesia, as well as the worst health indicators, and the poorest literacy rates.

Scale of destitution
The scale of destitution is best observed from the highland Amungme village of Banti, just 20 miles down from the Grasberg mine.

Estimates from Earthworks suggest that Freeport dumps as much as 200,000 tonnes of mine waste, known as tailings, directly into the Aikwa delta system every day. The practice has devastated the environment, according to Earthworks and locals, turning thousands of hectares of verdant forest and mangroves into wasteland and rendering turgid the once-crystal waters of the highlands.

The tailings from the Grasberg mine are so rich with ore that Papuans walk for as long as a week to get here. Crowding the length of the river and the delta wasteland, thousands of unlicensed panners shore up small sections to slow the river’s flow and dig into the thick sediment on the side.

Although some of these panners are located within Freeport’s official mining operations, they are not evicted or controlled in any way, they said. Instead, they claim they sell their findings to the police and military who work as security on the mine. (An anonymous Freeport source also confirmed this).

One of the panners, Martine Wandango, 25, bends over her pail of water as she filters out rocks and searches for ore. “You can only survive with money, and you can only find money from gold,” says Martine, who followed her husband to the delta 15 years ago by walking 60 miles over the mountains from their remote highland village.

“I work really hard as I want to give my children better lives, so they can go to school. But it isn’t enough, so she helps me here mining,” says Martine of her daughter, nine, who swings a gold pan in her hands. “On a good day, I can get three grammes, which I sell either to the police or [to buyers] in Timika.”

A tiny village when Freeport arrived here 40 years ago, Timika is now a boom town dotted with bars, brothels, gold-processing shops and various military personnel. Under Indonesian law, Freeport is a designated “strategic industry”, which mandates that external security for the mine, its access roads and its pipelines all be provided exclusively by Indonesia’s security forces.

Freeport never implicated
Freeport has never been implicated in any human rights abuses allegedly committed by the Indonesian military in Papua.

Freeport McMoRan, based in Phoenix, Arizona, did not respond to multiple requests for comment.

The company’s website defends its method of disposal of tailings at Grasberg, managed by PT Freeport Indonesia (PTFI), an affiliate company: “PTFI’s controlled riverine tailings management system, which has been approved by the Indonesian government, uses the unnavigable river system in the mountainous highlands near our mine to transport tailings to an engineered area in the lowlands where the tailings and other sediments are managed in a deposition area.”

A 2009 report by the company says it utilises levees to contain tailings in the deposition area, and that the tailings management programme costs Freeport McMoRan $15.5m (£12.7m) each year. According to the report, company monitoring of aquatic life in the rivers found that fish and shrimp were suitable for consumption, as regulated by Indonesian food standards, while water quality samples met Indonesian and US Environmental Protection Agency drinking water standards for dissolved metals. In a 2011 BBC report (pdf) on alleged pollution in the area surrounding Grasberg, the company says that the tailings management method was chosen because studies showed the environmental impact caused by its waste material was reversible.

Elsewhere on its website, the company says: “We are committed to respecting human rights. Our human rights policy requires us (and our contractors) to conduct business in a manner consistent with the Universal Declaration of Human Rights, and to align our human rights due diligence practices with the United Nations Guiding Principles on Business and Human Rights (UN Guiding Principles).”

The company also emphasises its work with indigenous people in West Papua. A 2015 Freeport McRoRan report on working towards sustainable development said: “PTFI has engaged with indigenous Papuan tribes for decades, including through numerous formal agreements to promote workforce skills training, health, education and basic infrastructure development … In 2015, PTFI continued to evaluate the effectiveness of alternate options for Kamoro community members whose estuary transport routes are impacted by sedimentation associated with the controlled riverine tailings management system. Provision of smaller sized boats, in addition to 50 passenger vessels, for route flexibility as well as additional local economic development programmes were identified as additional mitigation measures during the year.”

Back in the area surrounding the Grasberg mine, many Papuans, struggling for work, find themselves pulled into the bar and sex industries that cater to the miners, particularly around the highland village of Banti. Here brothels and bars line up side by side, allegedly with help from the Indonesian military, who are said to supply sex workers and alcohol, according to a Freeport source who wished to remain anonymous.

Newfound promiscuity
Indigenous chiefs have watched as a newfound promiscuity has brought sexually transmitted infections that have ravaged their communities. “Traditional Papuan culture forbids free sex, but alcohol makes our communities vulnerable,” says the Amungme chief, Martin Mangal. “And brothels make it easy to contract HIV.”

HIV rates in West Papua are of “epidemic” proportions, according to the UN, 15 times higher than anywhere else in Indonesia. Driven almost entirely by unsafe sex, HIV is also far more prevalent among indigenous Papuans. Yet the existence of only one hospital – built by Freeport – means that most people, particularly those in remote highland villages, don’t get the help they need.

Late last year, the Indonesian president, Joko Widodo, claimed he was willing to work towards a “better Papua”: “I want to listen to the people’s voices.”

However, human rights violations have actually increased since Widodo took power, according to Indonesia’s Commission for the Disappeared and Victims of Violence (Kontras), which has logged 1,200 incidents of harassment, beatings, torture and killings of Papuans by Indonesian security forces since his election in 2014.

The Indonesian government did not respond to multiple requests for comment. The country’s military has consistently denied any wrongdoing in Papua.

Despite everything, there have been small glimmers of hope. This summer, Dutch human rights law firm Prakken D’Oliveira submitted a formal legal complaint against Indonesia to the UN Human Rights Council, accusing the government of “long-term, widespread and systematic human rights violations” and the “complete denial of the right to self-determination of the people of West-Papua”.

Later this year, West Papua is expected to be granted full membership of the Melanesian Spearhood Group, an important sub-regional coalition of countries including Fiji, Vanuatu and Papua New Guinea.

The Brisbane commission, which warned of the risk of genocide, is calling on Indonesia to allow Papua, once and for all, the right to self-determination.

Yet some fear the opportunity for change in Papua is long gone.

“Is healing even possible?” asked Professor Agus Sumule, shaking his head. “It could be too late.”

Susan Schulman is an award-winning video/photojournalist. She moved from her native New York to London in 1990. During the past 10 years she has chronicled many of the world’s forgotten tragedies, from the horrors of childbirth in Sierra Leone and child soldiers in Sudan to the wretched plight of gold miners in the Amazon basin. This article was first published in The Guardian and has been republished here with the permission of both the author and The Guardian. Go to The Guardian for full images and resource links.

How mining and militarisation led to an HIV epidemic in Papua

Martina Wanago was sick. In fact, she was sure she would die. She had contracted HIV, which has reached epidemic proportions here in Indonesia’s remote and restive province of Papua. And like many of those infected, she didn’t know what was wrong with her.

“All I could do was just wait for God to call me,” Wanago said, closing her eyes as firelight flickered on her face in a traditional roundhouse in Kambele, a remote artisanal mining village deep in cloud-shrouded mountains.

But it was here, in this unlikely spot, that she found salvation. Or rather, she found treatment – at the Waa Waa Hospital in the nearby community of Banti.

The hospital was built by Freeport McMoRan, one of the world’s largest mining companies, based in Phoenix, Arizona. It is one of very few positive developments that the industry has brought to indigenous Papuans.

The Indonesian government’s mining ministry is said to have recommended the granting of a new short-term export permit to Freeport-McMoRan’s Grasberg mine in West Papua.

Freeport’s local subsidiary is required to apply for renewal of export permits at six-month intervals.

In February 2016, an export permit was renewed by the trade ministry through August 8, 2016.

Reuters cited Bambang Gatot, Director-General of Coal and Minerals, within the mining ministry, as saying the latest renewal would run for less than six months until January 11, but did not explain why.

The company is still in discussions with government to obtain an extension of its long-term rights under its original contract-of-work agreement as it looks to extend operations beyond 2021.

It has agreed to construct new smelter capacity in Indonesia and to divest an additional 20.64 percent interest in PT Freeport Indonesia at fair market value.

The Indonesian government continues to impose a 5 percent export duty while it reviews the company’s smelter plans.

In the six months to end-June, Grasberg produced 169,000 tonnes of copper and 336,000 ounces of gold at a copper cash cost of US$1.22 per pound after gold and silver credits.