[miningmx.com] — HARMONY Gold’s Hidden Valley joint venture in Papua New Guinea (PNG) is again facing legal action over damage caused by mine-related sediment to communities and landowners along the country’s Watut River.
In a statement released on Thursday, the JV said it was served a writ on Wednesday by the legal advisers acting for a member of PNG’s parliament.
“The writ alleges nuisance relating to mine-related sediment and seeks damages and injunctive relief,’ read the statement. “The joint venturers will vigorously defend the litigation should it proceed.’
Hidden Valley’s management said it has been making payments since November to communities along the Watut River for flood damage to crops and gardens, which mine-related sediment may have contributed to.
“The vast majority of eligible people have now received their payment. The MP has been fully aware of the status of the payments throughout the payment period.’
In a statement released in December, the mine said the sediment was a run-off from mine overburden and construction activities. The sediment run-off has lowered significantly after construction was completed in September, while the mine also implemented some other mitigation measures.
The writ came despite an agreement reached in December between Sam Basil, the MP reprenting the Bulolo constituency, and the JV whereby the parties agreed that a technical advisory panel would review sediment and pollution issues affecting the Watut River.
“The pending legal action now prejudices the ability of the MP and his legal adviser to participate in this process,’ the JV statement read.
Hidden Valley is a joint venture between Harmony and Australia’s Newcrest Mining. The mine is located near Way and Bulolo in PNG’s Morobe Province, and was officially opened in September. It is one of Harmony’s stated growth projects and produced 21,500 ounces of gold in its first full quarter of commercial production.
