PNG law to shield resource giants from litigation

Rowan Callick

THE Papua New Guinea parliament has passed legislation that shelters resource projects from all litigation over the destruction of the environment, labour abuse or landowner exploitation.
The controversial amendments to the Environment Act, approved by 73-10, were driven by China's state-owned Metallurgical Construction Corp (MCC), the developer of the $1.5 billion Ramu nickel mine, 8.56 per cent-owned by Brisbane-based Highlands Gold.

The amendments come amid a major conflict between the legal system and the government, with Treasurer Patrick Pruaitch suspended by the Supreme Court over corruption charges placed by the Ombudsman Commission. Ramu landowners had won injunctions to stop the completion of the pipeline to slurry waste from the mine out to sea off Madang, once the mine is built.The government, led by Michael Somare, awarded Ramu an unprecedented 10-year tax holiday. MCC then became increasingly upset about delays to the project -- over labour conditions, displacement of landowners and environment impact.

Mount Hagen-based lawyer Tiffany Nonggorr, who represented landowners in obtaining the latest injunction from judge David Cannings, told AAP at the time: "There are grave environmental concerns. The mine's proposal is just too risky. This injunction is a massive victory for us, definitely a David-and-Goliath struggle."Goliath has now fought back, backed again by the Somare government. Ms Nonggorr said the new legislation meant that in case of an accident or disaster off PNG similar to the one involving BP off the US coast, "(the company) would escape all liability for environmental damage".

The restraining order on MCC from continuing its pipeline construction will be lifted following the parliamentary intervention.George Ireng, who organised a petition opposing the ocean dumping of Ramu tailings, said the legislation was "a direct insult, especially to the concerned people of the Rai Coast".The amendments to the law also give the director of the environment and conservation office wide-ranging discretion to award certificates granting exemptions to resource developers from state requirements.Environment and Conservation Minister Benny Allen said "the national interest" was paramount.

Opponents of the new legislation protecting resource projects -- including the $16.5 billion ExxonMobil led liquefied natural gas project -- are expected to challenge it in the courts.

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