A Government sanctioned environmental audit into the extraction of water at Londolovit river on Lihir island by Newcrest’s Lihir Gold Limited (LGL) has found breaches in the Environmental Permit held the company.
Australia’s North Victorian based company Moroka Pty Ltd carried out the environmental audit of the Londolovit river between May and August this year after been commissioned to do so by Conservation and Environment Protection Authority (CEPA) of the PNG Government. The Moroka Report stemmed from a complaint by the Londolovit impact community about over extraction of water by LGL which they were claiming K113 millionpaymentfor. Among others, the Morokafindings were: • pumping rates and volumes provided by LGL shows there are periods of non-compliance with the environmental Permit; • water supply system not currently being operated as originally planned subject to 1992 Environmental Plan; • The hydrological impact on the lower Londolovit river is substantial; • Non-compliance of the Environmental Management and Monitoring Program (EMMP); • Parties to invoke the clause for review in the 1998 Settlement agreement; and • LGL liable to pay compensation in the event of a low river flow. During the presentation of the Report on Lihir island on Sep 24, CEPA gave LGL (Permit Holder) until Dec 1 to i) submit a long term improvement plan, and ii) dredging silt within the reservoir and maintain water supply at Londolovit river. CEPA also demands a detail plan of action on the low flow criteria of the Londolovitriver by Dec 1, 2015. The Report notes the existence of the Settlement Agreement of 1998 between then Lihir Management Company (LMC) and Londolovit community but recommends for the parties to invoke the clause for a review now rather than later to accommodate compensation for both the “use” of water as well as “impact” on Londolovitriver. “We thank CEPA for commissioning this audit and for presenting the report to the people. “However, the community was disappointed that CEPA did not penalisethe Permit Holder. “When an Environmental Permit of this Level 3 activity is not complied with, the regulator should immediately impose the respective penalties. This however is not happening, although CEPA has a site Officer to ensure such instances are reported to the state. This ignorance is a mockery to the so called Environment Act 2000. This very same act has also become the shield for the Permit Holder in terms of permit fees
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