Papua New Guinea’s Mineral Resource Authority has ordered the indefinite closure of Ramu Nickel processing plant operations after it failed to comply with 16 remedial measures demanded following a slurry spill into Basamuk Bay on August 24.

Basamuk Bay coast after the slurry spill on 24 August. Credit: Nigel Uyam/ABC

After an estimate of 200,000 litres of slurry spilled into Basamuk River in Madang Province turning the coastline of Basamuk Bay red, the Metallurgical Corporation of China (MCC) has been ordered to shut down the nickel processing plant’s operations. Mandang’s Governor, Peter Yama, has welcomed the decision.

The closure is in compliance with the Mining Safety Act of 1977, and it was issued after the MCC failed to comply with 16 remedial measures that aimed to rectify defects identified after the slurry spillage.

‘Based on that we have no option but to basically ask them [MCC] to shut down a portion of the operation and apparently that portion of the operation is a critical part of the Basamuk Processing Plant which critically crippled the entire operation.’

An investigation carried out two days after the slurry spillage was reported to PNG authorities found four main defects (incompetency of operators, inadequate bund capacity, inadequate spillage containment system, and inadequate maintenance of instrumentation and machines), which were addressed in the proposed remedial measurements.

‘Based on that, we have no option but to basically ask them [MCC] to shut down a portion of the operation and apparently that portion of the operation is a critical part of the Basamuk Processing Plant which critically crippled the entire operation,’ Jerry Garry, the MRA’s Managing Director said.

A spokesperson for MCC confirmed the shutdown order and said the company may release a statement next week.

‘If the government asked us to suspend production and carry out checks, we will surely cooperate and comply with local laws. But we are also surely going to safeguard our normal rights.’

Background

Ramu Mine location. Credit: Cobalt 27

The Ramu Nickel processing plant is part of the US$1.2 billion Ramu Nickel project, which includes the Ramu Mine and the Basamuk Processing Plant, which MCC operates. It is a joint venture between Cobalt 27 (8.56 per cent), the PNG Government and landowners (6.44 per cent) and MCC Ramu Nico Ltd (85 per cent). A 135-kilometre slurry pipeline runs from the Kurumbukari mine to the Basamuk refinery.

After the Authority was informed of the incident, Mining Minister Johnson Tuke and Garry visited the site to conduct ‘independent assessment on the extend of the damage.’

At the time, the MRA published a statement on social media saying ‘the investigations will determine the nature of the slurry, including toxicity, pH and other heavy elements discharged. It will also include how best to mitigate the slurry already accidentally discharged into the ocean. Furthermore, the investigations will also establish any procedural failures on the part of the operator and necessary remedial measures will be imposed.’

After the spill, local fishermen were advised to avoid finishing in the Basamuk, where dead fish have been washed ashore.

Geoffrey Gama, Minister for Environment, presented to Parliament the results of a study commissioned by the Conservation Environment Protection Authority (CEPA) after the 24 August slurry spill which suggested water samples from Basamuk Bay were within acceptable limits of heavy metal contamination.

Swiss scientist Alex Mojon conducted an independent study of Basamuk Bay from water samples collected in September and found toxic levels of heavy metals. He told local media: ‘I have to tell you that it’s alarming … there is evidence that Ramu Nico is not managing their waste and that is a fact.’

Ramu Nickel has apparently refuted this investigation and said it would only accept the results of the CEPA research.

On a social media post dated 27 October, Prime Minister James Marape is quoted as saying: ‘I will be the last Prime Minister to compromise safety of our people and environment and it is prudent that reviews are undertaken so that the mine is safe from structural and systematic defects going into the future.’