Morobe Miner Edition 21.indd - Morobe Mining Joint Venture

Creating A World Class Mineral Province in PNG Edition 21, 2012
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Prime Minister Peter O’Neil visits Hidden Valley mine and Wafi-Golpu Project
www.morobejv.com

Editorial
In this issue
Pg 3
Pg 4-5
Pg 6
Pg 7
Pg 8
Pg 9
Pg 10
Pg 11
Pg 12
Pg 13
Pg 14
Pg 15
Pg 16
HV GM Message
PM’s visit
JT’s message to staff
OLC soluons
Keep your hands safe
Four giants arrive
LTI free for MEJV
What is cyanide?
BSA & SSG deliver
CPA the way to go
Fresh vegies project
Fight against Malaria
Elementary teachers sign
contracts
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Hi everyone and welcome to this 21st Edion of Morobe Miner.
In this edion, we look at some of the posive highlights that have
occurred in the last three months. A highlight in this period was the historic visit
by Prime Minister Peter O’Neill and Harmony Gold Chairman, Patrice Motsepe
to the Hidden Valley Mine and Wafi-Golpu Project sites. The Prime Minister
emphasised partnership as being an important tool towards building a lasng
friendship between MMJV, Morobe Province and PNG as a whole.
You will also read about the various projects MMJV and its partners have
accomplished in the communies. Projects such as capacity building trainings
and the new Community Parcipaon Agreements iniated by the Wafi-Golpu
Project speaks volumes of one of our key drivers - creang sustainability through
community development and partnership.
At Hidden Valley, the management team led by Bevan Jones is implemenng
a number of iniaves to li their performance in order to meet targets. They
have idenfied obstacles and are working around the clock to address them.
Some of the soluons that you will read in this series are targeted towards
improving producvity and also employee safety. It is crical that we all play
our part in supporng the HV management team where we can to improve
performance in all areas.
A big congratulaon to the Morobe Exploraon Joint Venture team for a
record four years Loss Time Injury (LTI) free. It is a record here at MMJV and they
have set the benchmark in high performance.
We are seeing staff pung more effort in ensuring we are achieving our
goals and on behalf of the senior management team, we say thank you for your
commitment. We should always remember our values of Honesty, Integrity,
Respect, Working Together, Courage, Creavity and
Innovaon, and Commitment to our people, and
ensure these values translate through our jobs and
even at home.
Finally, we are approaching the Fesve season and
during this me, there will be many acvies happening
in Lae and outside coupled with the typical Christmas
rush so let’s all be mindful of this and keep safe all the
me at work and home.
David Wissink
Editor
The Monitor
Thank you for ongoing circulaon of
Morobe Miner to me.
I enjoyed reading Edion 20 because of
the personal efforts I had put into the HV
prospect to project and also BSA from
1992 to 2008 whilst with MRA.
I parcularly enjoyed the lead story and
success of the Benefit Sharing Agreement
in which I was the inial chairman of the
working commiee that negoated the
BSA and had it signed.
It is good to see such concept implemented
and see it work as a tangible benefit to
landowners.
Well done to MMJV!
Ron Gawi
Highlands Pacific
Thanks and I’m impressed with the quality
of your newsleer.
Regards,
Raisa R Sambath
OHS Coordinator Bige Operaons, Ok Tedi
Mining Ltd
Thank you so much for the updates on the
site personnel. This is fabulous as it helped
me to update my projects database.
Keep up the good work!
Melissa Obediah
Chamber of Mines & Petroleum
A lot of iniave from MMJV to
communies. One thing that stands out
is that these projects or things given to
communies are sustainable.
And not one off, also beneficial to the next
generaon.
Well done!
Margaret Genkawa Selon
Community Development Coordinator
CARE Internaonal in PNG
Morobe Mining Joint Ventures (MMJV) is equally owned by Harmony Gold Mining Company Limited (50%) and Newcrest Mining Limited
(50%). MMJV comprises of three joint ventures - Hidden Valley Joint Venture (HVJV), Wafi -Golpu Joint Venture (WGJV) and Morobe
Exploraton Joint Venture (MEJV).
2

Hidden Valley operations highlights
Message from HV GM
have had the opportunity to discuss our Quarter 1 Financial
I Year 13 results with most of you at the Quarterly State of the
Naon sessions on site, but for those of you who missed it, I will
give a quick recap.
Our very posive seven months LTI free run ended in
September when one of our employees in the Mobile Fleet
Maintenance area fractured bones in both hands due to steel
counter weight dropping onto his hands. It was very fortunate
the injury was not significantly worse.
This incident goes to show that we can never stop using our
safety tools to keep us safe from harm.
Using your LLB (Daily Personal Prestarts) will help stop these
types of incidents occurring because once you ask yourself the
quesons:
• Am I trained and Competent to do this task?
• Is there a Safe Work Procedure and do I know it?
• Do I have the right tools and equipment to do the job?
• Are there any hazards in the work environment?
Then Hidden Valley will be a safer place to work.
Producon in the mine (Total Material Movement – TMM) has
been well down on our targets and the main causes have been
excavator producvity, truck availability and drill availability.
Both the Mining and the Mobile Fleet Maintenance teams
have got some work to do to get us back to the required levels.
The Process Plant broke individual month records for
throughput as well as the best Quarter throughput results in the
‘Big Rocks’ are obstacles at HV
Idenfying obstacles and priorising them is important if Hidden
Valley is to achieve its targeted goals.
Hidden Valley Business Improvement Manager David
Wentworth metaphorically describes these obstacles as ‘big
rocks’ and they are nine of them:
1. Mobile Equipment Availability
2. Ulisaon and Producvity in the mine
3. Workforce engagement
4. Supply and Logiscs (Supply to payment)
5. HVK Crushing and OLC performance
6. Processing opmisaon and consistency
7. High performance leadership team
8. Professional and producve workforce and
9. Maintaining safety environment.
Mr Wentworth says these obstacles have been a hindrance to
the HV team in achieving their goals and there was great urgency
to deal with these issues.
history of Hidden Valley in the last
Quarter.
This was a real team effort
between the Ore Haulage, Fixed
Maintenance and Process teams.
Bevan Jones, General Manager
Hidden Valley
Thank you to all those involved
in this process. Now we just need to get the mill feed grade up
and the metal recoveries to budget and we will meet our gold
targets.
The targets for the Q2 SIP were rolled out and we unveiled
our revised incenve programme to ensure that we reach our Q2
target of 108,000 Oz of Gold by the end of December 31, 2012.
I ask all those involved in the operaon to focus their daily
efforts to ensure that we achieve this important target.
I would also like to take this opportunity to introduce Chris
Huddy, Geology Manager, a newest edion to the Hidden Valley
Management team to you.
Chris has spent the last four years working with AECOM
Australia on significant tunnelling infrastructure projects in the
Brisbane Area as Manager - Ground Engineering and Tunneling.
Prior to this he worked in PNG with Barrick at Kainantu.
Chris has also worked in various mines around Australia and
will be a great asset to the Hidden Valley Team.
Stressing on the nine big rocks, Mr Wentworth said: “If we
don’t have parts supply, we can’t maintain the equipment, if we
don’t have equipment availability, we can’t mine ore, we can’t
run the mill, we can’t get gold.
“If we don’t have an engaged professional team, we can’t
maintain or operate our equipment, if we don’t conduct
ourselves safely, or respect the environment, we injure ourselves
and team members and communies, we won’t be able to work.
“It takes every single one of us at Hidden Valley and our
support departments to produce an ounce of gold.”
At the end of August this year, MMJV Managers gathered
with a common goal to support each other and have commied
to building a successful Hidden Valley Mine.
On September 23 they engaged the support of superintendents
to form a leadership team commied to working together.
“Over the next lile while, every employee will be engaged
to do their part in the success of Hidden Valley. This means
performing the dues safely and to the best of our abilies,” Mr
Wentworth said.
3

PM stresses importance of partnerships
IMPRESSIVE: From left to right are Harmony Gold CEO
Graham Briggs, Harmony Chairman Patrice Motsepe,
PM Peter O’Neill and Nakuwi Chairman Rex Mauri at
Hidden Valley.
Prime Minister Peter O’Neill has reaffirmed his government’s
commitment to supporng the mining industry in Papua New
Guinea.
In his first ever visit to the Hidden Valley Gold Mine and Wafi-
Golpu Project on Tuesday October 2, Mr O’Neill said it was very
important to have good strong partnerships in place in order to
become very successful especially in the mining industry.
The Prime Minister, along with his entourage comprising
Mining and Petroleum Minister Mr Byron Chan and high level
officials toured Hidden Valley on the first leg.
Accompanying them were Harmony Gold Mining Chairman
Patrice Motsepe, CEO Graham Briggs and execuves, Newcrest
Execuve General Manager External Relaons Stephen Creese,
provincial government officials and landowners.
Some of the highlights pointed out by Hidden Valley’s General
Manager, Bevan Jones, included the Tailings Storage Facility, a
first of its kind for in PNG.
The PM was also shown the 4.5 kilometre Overland Conveyor
(OLC), the longest in the world, that transported ore bodies from
the crusher to the mill, and the effecve environment monitoring
mechanisms set in place to monitor the mine’s environmental
footprint including water quality monitoring along the river
systems and sediment reducon improvement programmes.
Mr O’Neill was very impressed with Hidden Valley’s
operaons and its strong partnership with landowners, various
stakeholders and the government.
He said the mining industry was the best industry providing
opportunies for the people and it was important for the
government to parcipate acvely in the industry.
“Geng briefs is one thing but coming to see what you are
doing is very encouraging, to see a joint venture working closely
with the landowners and people…is an example of what can be
achieved if all partners are working to making a project like this
a success,” Mr O’Neill.
He also assured that the government will connue to support
Hidden Valley and the upcoming Wafi-Golpu project by giving
their full aenon to supporng infrastructure and projects in
the Bulolo District such as the Lae to Bulolo-Wau highway.
Chairman of Harmony Gold Mining, Mr Patrice Motsepe,
said that Harmony is confident of building a partnership with
landowners, stakeholders and the government.
“Our success, the success of Harmony and its partner
(Newcrest) depends on the success of the local people and the
success of the government as a whole,” Mr Motsepe said. He said
Harmony was very commied in its operaons in the country.
Aer Hidden Valley the Prime Minister visited the Wafi-Golpu
project where he was shown around the camp and drill locaons.
Mr O’Neill was given a brief presentaon on the ore reserves
of Wafi and Golpu developments, and a rundown on how the
projects were being planned out unl producon.
The PM also visited the Wafi-Golpu Health Clinic, run by the
Wafi-Golpu project nursing staff and two government aid post
orderlies.
He was impressed with the medical service being provided to
nearby communies apart from employees.
“I’m very pleased to see this sub-health centre providing
medical services to the people…this is what we want to see
throughout PNG, strong partnerships with the local people,” Mr
O’Neill said.
The PM told a small number of village people who came to
see him that Wafi-Golpu was a big project and will take a while
to develop so he appealed to them to work together with the
government and the mining venture to ensure the benefits
reached every stakeholder.
4

THIS IS IT: The PM takes a look at a resource chart at
one of the Wafi-Golpu drill sites (above) and below
left, touring the Hidden Valley pit.
‘‘The government will connue
to support Hidden Valley and the
upcoming Wafi-Golpu project through
infrastructure and projects in the
Bulolo District.’’
- Peter O’Neill, Prime Minister
‘‘Local people key to success’’
Chairman of Harmony Gold Mining, Mr Patrice Motsepe, said
that Harmony is confident of building a partnership with
landowners, stakeholders and the government.
“Our success, the success of Harmony and its partner
(Newcrest) depends on the success of the local people and the
success of the government as a whole,” Mr Motsepe said.
He said Harmony was very commied in its operaons
in the country, adding, “I am confident that our partnership
with yourself (Newcrest), our partnership with the minister,
the ministry, the government and the locals will go a long way
towards recognising that it’s not just about the profits we need
to make, which we need to make for our shareholders, but what
is fundamentally important is the opportunies we create for
our local people.”
PARTNERSHIP VITAL: Mr Motsepe says Harmony is committed to building strong
partnerships.
5

JT says keep your eyes on the ball
6
WORK TOGETHER: Jonathon Thurston calls for some
go forward.
R
ugby league star Jonathon Thurston
has declared himself the number
one supporter of Morobe Mining Joint
Ventures.
His enthusiasm, leadership and gamewinning
skills are being enlisted to inspire
the Hidden Valley workforce, encouraging
them to give momentum to a mining
project that is experiencing some ups and
downs.
To use the football analogy, the
Hidden Valley team is well behind on the
scoreboard, and needs some go-forward.
There’s been a lot of dropped balls:
employee retenon is down, plant
availability is dismal, mining rates are too
low and process recoveries are below
plan.
All of these poor stats are contribung
to a disappoinng score line…there’s just
not enough gold coming out the end.
An era of high gold price cannot
mask the shortcomings, and the project
candidly tells it like it is: costs are around
$2,000 an ounce.
The under-performance is stark, and
the Hidden Valley management team
makes no aempt to disguise it, while
working hard to engineer a turnaround.
The team has workshopped
intensively. They have adopted the big
rocks analogy, believing that if you don’t
get the big issues in the jar first, you’ll
never find space for them at all.
HV General Manager Bevan Jones
idenfies some of the rocks.
“Put simply, we don’t dig enough dirt,
and we don’t get sufficient producon.
“So the big rocks must include safety,
availability, ulisaon, throughput and
recovery.
“And there is the way we perform as a
team. We all need to play in our posions.
This includes the recognion of the impact
supply and logiscs have on producvity,
and building confidence in each other’s
sense of commitment.”
Mr Jones says his team believes the
base exists for a profitable business if
the resource is extracted and processed
efficiently.
“The overall intenon is that we
deliver value to our owners, profitably
and sustainably, with zero harm, in a way
that every team member can be proud.
“We also have a social responsibility
to our employees and their families,” he
said.
Low morale is a beast that feeds
upon itself, and the management team is
aware of a weakening sense of urgency,
accountability and delivery amongst a
workforce exceeding two thousand men
and women, many of whom are first-
mers recruited locally.
These are the team members who
need to share the vision.
To engender an atudinal turnaround,
the project has enlisted champion
Jonathan Thurston, who is a proven
success at winning games from a long way
behind, and can tell the team that it can
be done.
“Winning from behind needs every
person to know their place in the team,
and then giving it their best,” Thurston
says.
“For a start we have to believe it can
be done.
“Then we need to stop repeang our
mistakes, and get back onto the game
plan.”
Playing in your own posion is a key
part of Thurston’s approach to “goforward”.
“We’ve all seen teams with their heads
down, bunched up behind the ball carrier.
“Losing teams have no sense of
structure. They oen look like 8-year old
soccer players, every kid running aer the
ball all the me.
“Winning teams maintain the
pressure. It is no use to have cycles of
focus, followed by periods of distracon.”
Thurston tells the Hidden Valley team
that they can come from behind and
win, and promises that it will be a special
experience.
“We are going to work as a team.
“We are going to keep each other safe.
“We are going to be there for each
other. We are going to keep our eyes
on the scoreboard, because we need a
thirty-per cent increase in producon in
six months.
“We are going to listen to the game
plan and sck to it.
“We are going to wear our colours
with pride. We are going to trust our team
mates, and believe in ourselves.
“We are going to make this the best
gold mine in PNG.”
Sports fans, and gold miners, stay
tuned.

Solutions discovered for OLC problems
Two soluons have been idenfied
for the unusual belt behavior of the
Overland Conveyer (OLC) that had limited
the performance of the asset.
The Fixed Plant Maintenance and
engineering team with help from the
original equipment manufacturer
FLSmidth idenfied the problems during
the OLC re-commissioning in September
2011. Further invesgaons revealed
that this behavior was due to low tension
events in and around the Watut River.
The first method was the purchase
and installaon of modified frames and
extended rollers to mechanically prevent
low tension ‘catches’ with the aim to have
these installed before the Hidden Valley
Crusher Upgrade is completed in January/
February 2013.
The second soluon was through drive
control modificaons of the four 630kW
motors, completed in September.
The control program was successfully
modified with posive results noted on
the tension and tracking of the belt along
the enre system.
These two methods in conjuncon
with the HV Crusher Upgrade will allow
the enre circuit to reach its design
capacity of 800 tonnes per hour (tph) and
help the HV Operaons achieve its targets
while significantly reducing costs.
Fixed Plant Maintenance and
Engineering Manager Jerry Abel, said the
fixed plant operaons and maintenance
teams played a crical role in idenfying
the engineering defects and will
connue to play a crical role in future
performance.
He said the team has demonstrated
significant improvements in their
understanding of the enre system.
“Their level of confidence grows each
day, this is great to see,” said Mr Abel.
The teams will need to connue to
demonstrate this level of commitment
and teamwork to further improve the
availability and ulisaon of this crical
asset.
Currently the system is running at
TAKING A BREAK: From left to right are Snr
Mechanical Engineer Brad Hancock, Crushing &
Conveying Coordinators Keith Miller and Sam Karagu,
Maintenance Foreman Crushing & Conveying Levi
Kalano, and Belt Splicer (OLC Monitoring Crew) Max
Wama.
450tph and this will increase with the
installaon of a Striker Screen in the HV
Crusher area to act as a second input
stream of ore onto the OLC.
The OLC is a 4.5km pipe conveyor roller
coasng from the mine to the Processing
Plant at Hamata.
HVJV introduces new monitoring tool
Hidden Valley’s Modular Mining
Dispatch System (MMDS) is a smart
tool making jobs easier.
The MMDS is a computerised tool
that monitors and ensures mobile mining
equipment is effecvely doing the right
job at the right me.
“It is like a 24-hour computer shi
supervisor that knows everything going
on around the operaon,” said Simon
Jackson, Hidden Valley Mine Manager.
“It knows everything because our
Dispatchers tell the computer where we
are moving material, our equipment (type
and how it is operang), and the details of
our haul roads.”
Mr Jackson said locaon censors
(GPS) and other electronic devices have
been built into all the mobile equipment
to help the Dispatch Team locate the
equipment, what it’s doing and other
BUSY BEES: Some of the dispatchers at work. From left
are Kebsey Mange, Ezra Joel and Inimbu Pabia.
informaon which the computer puts
together to suggest the best way to use
the equipment.
The new tool will also help monitor and
react to haul road issues, breakdowns, the
operator skills and current performance,
excavator hangs and queue delays “and
prey much everything that applies to
the art of moving rocks,” Mr Jackson said.
In the next few weeks teams would be
more effecve in pushing the fleets and
in turn increase the ability to achieve the
set goals.
“Of course such a system is only as
good as the people that make it work –
the Dispatchers, Maintenance teams, the
Foremen, the Supervisors, the Technical
teams, and of course the Operators.
“The Dispatch computer only works if
it is operated correctly and if it knows as
much informaon as possible,” he said.
The talent people currently working
at the dispatch consoles are Ursula Sau,
Fiona Asok, Geoka Kupa, Sawi Kiari, Job
Manoah, Kebsey Mange, Ezra Joel, and
Tahila Taomo supervised by Leisa Ainslie
and Rick Basse. They work closely with
Ian Tully who provides technical support.
7

Keep your hands safe!
HAND SAFETY IS NAMBAWAN: A participant (above)
shows his taped hand while Mr O’Kane (below right)
gives the hand safety talk to the participants.
We oen forget how oen we use our hands and fingers at
work and how important it is to keep them safe from harm
or exposure to risks.
At Hidden Valley, hand and finger injuries represent nearly
30% of injured body parts with recent increase in the number
and severity of hand injuries.
This has raised great concern from the management team.
The HV Safety team, led by Manager Simon O’Kane, iniated
a Hands-On Approach as part of a number of Safe Systems of
Work Improvement projects to further increase workers safety,
raise awareness and engage the workforce to help reduce the
number of injuries sustained.
Implemented in early October, the hand injury informaon
sessions provided key informaon on hand safety awareness.
This included a number of interacve challenge acvies that
demonstrated the importance of healthy hands in everyday life.
These acvies included passing a football, making a
phone call, juggling balls, buoning shirts and tying boot laces.
Parcipants had their hands taped up to simulate the loss of
hand funcon and then struggled to do the acvies.
“It’s hard doing normal things when your fingers and thumbs
are taped up,” a parcipant said.
Some team members also shared personal experiences of
suffering hand injuries.
The hand injury prevenon awareness is connuing with
workgroups idenfying and developing a poster of their own
top five hand injury potenal tasks and controls, and raising
improvement ideas that reduce hand injury hazards with their
Supervisors and Safety representaves.
The improvements that reduce hand injury potenal which
are implemented into work tasks will be recognised as part of
the Hidden Valley operaons monthly safety recognion awards
known as the “High Five Award”.
8

Four new giants arrive
The Mobile Fleet Maintenance (MFM)
team successfully built four giant
excavators at the Kaveroi Laydown Facility
recently.
These four machines were transported
in parts to the site with the help of the
Logisc team who arranged for parts to
be freighted up the mountains aer a long
and arduous journey from Australia.
Manager MFM Russell McKenzie said
that once on site, the job of bolng all the
giants commenced.
The end products were two giant
Komatsu PC2000 (200t Excavator) and
two Komatsu PC1250 (120t Excavator).
“To undertake this task, our team had
assistance from UMW and the MMJV
Supply and Logiscs teams,” Mr McKenzie
said.
He said that the four digging units
are an essenal part of the planned
producon and thanked those involved in
making all this happen.
HV upskills excavator and drill operators
Training this month for Hidden Valley
was focused on improving producon
operators’ skill on excavators and drill
rigs.
HV Training Manager, Mark Handley
said that having highly performing
operators on the excavators and drill rigs
is an essenal part of the business and is
also a key strategy to successfully achieve
the Hidden Valley targets.
As part of the training, the main area
of focus relevant to the operaon of
excavators and drill rigs were:
• Achieving consistent dig rates across
the fleet of 1,100 tonnes per hour (tph)
• Achieving drill rates of 22mts per hour
and
• Improve equipment availability
through improved operaonal
performance.
The producon training team has
been concentrang on consistent
improvements in dig rates by carrying
out me moon studies and increasing
equipment availability through training
programmes in the field.
“We have improved our daily training
reports to ensure we are covering
operator performance to eliminate
equipment damage,” Mr Handley said.
He said they are geng operators to
take ownership of their equipment and
also to understand the impact downme
through operator damage.
Mr Handley added the training was
well received and that they have been
monitoring the training results.
“Excavator producon is increasingly
improving and when adequately trucked
up, our operators are performing above
the bench marks,” he said.
Meanwhile Mr Handley welcomed
Isaiah Joel, a Crew Cubex Drill Operator
A GIANT STANDS: One of the finished PC2000 EX04.
Perched up on top from left to right are: Bradley
Kepas (HV Welder), Lawrence John (UMW), Gabriel
John (UMW), Simon Marcus (UMW) and Frank
Kerari (HV Workshop Supervisor).
THAT’S THE ONE: Newly appointed Drill Trainer Isaiah
Joel (left) points out a key aspect to Peter Madana
during a pre-start on the Cubex.
who has been successful in securing a
posion as part of the drill training team
at Hidden Valley.
Mr Joel will be fully involved in the
training of new drill operators.
9

MEJV clocks four years lost time injury free
10
WE DID IT: As part of the celebrations, Ali Bami, a
long serving staff was presented with a gift bag by
MEJV Safety Manager, Dennis Farlow.
Meeting mining targets and goals
T
o help with meeng mining targets,
Hidden Valley’s mining team are
creang various forms of communicaon
tools that would outline HVs targeted goals
and what they mean to all stakeholders
involved.
These tools would come in the form
of discussions, presentaons and posters
as well as constant dialogue between
various teams at HV to up their tempo.
“From the mining perspecve there
are lots of talk at Hidden Valley on mining
producon targets and what they mean,
as there is at every mine in the world,” HV
Mining Manager Simon Jackson said.
“In my short me at Hidden Valley
several people have asked me what our
producon targets mean, and the big
queson of what these targets really
mean to them.”
Mr Jackson explained common
understandings such as life of mine plans,
budget and forecasts.
“Plans discussed are important, but it
is the shorter term plans that provide the
detail and acons for each of us to know
what part we need to perform in our jobs
so that we meet our commitments.
“These shorter term monthly and
weekly plans will be appearing in the PSI
rooms as pictures showing what we are
doing, why and what our part is in these
plans,” he explained.
Weekly plans such as this one will explain to employees
how they play their part in the mine’s success.
The pictures and discussions would
be intended to explain how each of their
roles fit in achieving their commitments,
he said.
“Most of these targets are measured
through our Dispatch system. Our
Dispatch system also makes sure we have
the right equipment doing the right job at
the right me. Dispatch will increasingly
be a very important tool to assist the
Supervisors and Foremen to help us do
our jobs effecvely.”
Mr Jackson said the pictures and
discussions are intended to explain how
roles fit in achieving commitments.
He said the main ones would be:
• Equipment availability - when the
machine is available to be used.
On August 25, MEJV celebrated a milestone, and that was
achieving 1,454 days Lost Time Injury (LTI) free. This feat was
celebrated during MEJV’s bi-annual meeng in Wau.
Lost Time Injury is a work-related injury or illness that
results in an individual being unable to work on a subsequent
scheduled work day or shi. And MEJV’s 1,454 days or four years
LTI free achievement is a record for MMJV’s commitment to
implemenng safety and protecon protocols for its employees.
Former Exploraon GM, Mike Erceg puts it: “At the end of the
day we just want you guys to come to work, do the job and go
home to your families without geng hurt. Look we have gone
four years LTI (lost me injury) free. Four years is unheard in any
industry and the target now is five years. I’m very comfortable
you are going to make it. Just keep your eye on the ball and it
won’t be a problem.”
New Exploraon GM, Conrad Palaulo aributed the
achievement to good communicaon skills. “If we have a
problem we have to talk about it. It’s not easy to achieve that
and given the isolaon of our camps and the drilling programs,
this is a big achievement.”
MEJV had also accumulated a massive 2.5 million man-hours
and all employees remained healthy and able to connue their
work.
We have to make sure we support
Maintenance and take care of the
equipment and tell them about
issues.
• Equipment ulisaon – the hours
mining is using the machine. Our
current target is to always be above
85%.
• Excavator dig rate – how many
tonnes the excavator digs in its
ulised hours. Our target is to be
over 1,100 tonnes per hour.
• Excavator queue me – how long the
trucks wait to be loaded. Our target
is to be less than 1.9 minutes (114
seconds).
• Excavator hang me – how long the
excavator waits for a truck to load.
Our target is to be less than 0.72
minutes (43 seconds).
• Truck tonnages – how many tonnes
are in each truck. Our target is to fill
them to at least 87 tonnes per load
• TMM (Total Material Moved) – how
many tonnes are moved in a day. Our
target is to move more than 85,000
tonnes per day.
• 108,000 ounces – by achieving the
above this is the number of ounces
we will produce by December 31,
2012.

What is Cyanide?
As part of Hidden Valley’s compliance
under the Internaonal Cyanide
Management Code, Morobe Miner
Newsleer will be publishing a series of
arcles on Cyanide and its management.
Cyanide is a general term for a group
of chemicals containing carbon and
nitrogen, and has been used in the mining
industry for over 100 years.
It is marketed as Sodium Cyanide in
the form of white briquees.
The cyanide salt is mixed with water
to give the ions, sodium (Na+) and cyanide
(CN-), or may exist as hydrogen cyanide
(HCN) which is a gas.
At Hidden Valley, cyanide is used to
recover gold and silver.
It is transported from Lae to Hidden
Valley by road, stored in secure bunded
containers and mixed on site prior to use
in the cyanidaon tanks.
Cyanide is a very common naturally
occurring compound, which is formed,
excreted and degraded naturally by
thousands of animals, plants, insects,
fungi and bacteria.
It is common in many foodstuffs
consumed by humans such as almonds,
apricots, bamboo shoots, bean sprouts,
cassava, cashews, potatoes, sorghum,
soya beans and tobacco.
Although it is a common compound
and essenal in nature, it is widely
regarded as a highly dangerous substance.
Only 6% of the total cyanide product
in the world is used in the mining industry,
while the rest is used in steel hardening,
plascs, adhesives, cosmecs, paints and
other items.
When water-based cyanide is used
to extract gold from the milled ore, it
also forms a weak complex (weak acid
dissociable or WAD cyanide) with other
metals such as copper (Cu), zinc (Zn) and
cobalt (Co).
WAD cyanide can break up easily
in the environment and release toxic
cyanide ion.
Hidden Valley has a strict monitoring
program that includes measuring the level
of WAD cyanide in the tailings dam.
Cyanide in tailings dams naturally
degrades via sunlight, evaporaon and
oxidaon.
Even so Hidden Valley goes to great
lengths to ensure the amount of cyanide
entering the tailings dam is as low as
possible.
Cyanide is toxic to humans and
mammals. Although it can be fatal if it
enters the human body, it is rarely a cause
of accidental deaths.
There have been no documented
accidental human deaths due to cyanide
poisoning in the PNG or Australian mining
industry.
The Internaonal Cyanide
Management Code is a voluntary code of
which both Hidden Valley’s owners have
become signatories.
The intent of the Code is to
assist companies to improve cyanide
management and decrease risk to workers,
communies and the environment from
the use of cyanide.
BIG ROLE: A truck (above) transporting cyanide to
the Hidden Valley Mine. Cyanide briquettes (below)
are used daily at the gold mine to recover gold.
Manufactured as a salt,
dissolves easily in water,
and can exist as gas.
It is common in
environment, exists in
food we eat daily and
the body easily destroys
and excretes it.
11

Stakeholders receive benefits
HERE YOU GO: Mr Komunt, Mr Wissink and Mr
Mashego (third left) handing over some of the items
to the community leaders.
I
t was a special moment for the Winima
people when Mining Minister Byron
Chan visited their village on September
24.
They danced, sang and welcomed
the Minister in style as he arrived
with a delegaon including Morobe
Provincial, District and LLG officers, MMJV
representaves and vising execuves
from Harmony Gold.
The delegaon was there to witness
the handing over of three tractors, coffee
pulping and slasher equipment funded by
the Hidden Valley Mine Benefit Sharing
Trust. This was made possible through a
Benefit Sharing Agreement signed last
year between the HVJV and the Nakuwi
Associaon - landowner communies of
Nau, Kwembu and Winima.
Three 10-seater vehicles were also
delivered to Wau Police Staon, Bulolo
Police Staon, and the Morobe Projects
Management Unit. The vehicles were
funded under the Special Support Grant
(SSG) from the PNG Naonal Government
through the Hidden Valley MOA.
Speaking at the ceremony, Minister
Chan reiterated the importance of mining
in PNG and its benefits to resource
owners.
“Papua New Guinea sll depends
on mining as it has brought a lot of
development,” the Minister said. “We the
government must also appreciate that we
are benefing from your resources so I
thank you on behalf of the government.”
He encouraged the landowners
and communies to connue working
together with MMJV to fulfil all
commitments made in the MOA.
Harmony Gold’s Execuve Director
Mashego Mashego said MMJV understood
the expectaons of the people.
“We believe we have the social
obligaon to make a difference in the
communies in which we are doing
business…and we are happy to see the
fruits of those engagements that took
place at the me we moved out here to
establish the Hidden Valley mine,” Mr
Mashego said.
He said that Harmony, through MMJV,
was here to stay.
“We are not just here to come in and
move out, but we are here to stay and we
are commited to the agreements made
with the people to deliver,” he said.
BSA Trust and Nakuwi Chairman Rex
Mauri thanked the government and
MMJV for the connuous support and
called for more support from the Morobe
and Naonal government.
“We must not blame the developer for
anything. We must ask the government to
support us as we want to see more change
in our communies,” Mr Mauri said.
Capacity building important for landowners
Training landowners to manage their
finances wisely is important.
And Hidden Valley’s Business
Development team, under the Community
Affairs (CA) Department is connously
engaging landowner investment
companies in trainings that would
improve their business management.
One such training was a three-day
capacity building program on Taxaon to
assist landowner investment companies.
The Internal Revenue Commission
facilitated the training from October
1-3 for parcipants from landowner
companies - Nau Investments Ltd,
Kwembu Investment Ltd and Winima
Investment Ltd.
Business Development Coordinator,
Robin Siwick said: “They have to
12
understand the taxaon process, laws set
by the government and the importance of
complying with these requirements.”
He said at present these companies
have exisng contracts with HV like the
supply of light and heavy vehicles.
“These are significant steps towards
helping these companies become selfsufficient
once the mine is gone, and we
are doing our best to help them become
business-minded and to help them
understand the intricacies of business in
which taxaon is one of them.”
HV CA Manager, Stanley Komunt, said
this training will help prepare them to go
into other business ventures.
Manager Kwembu Investment,
Samuel Krimbu, spoke on behalf of the
parcipants and thanked the Business
Development team for the training.
Mr Krimbu said this was the first such
training adding “in PNG, business is not
our culture because of the pracse of
barter system and it is somemes hard to
run a successful business.
“But with connuous trainings like
this one, village owned companies would
move out of that mindset.
“No business is a failure, only
management is a failure.”
Prior to the taxaon training, the
Business Development team conducted
similar trainings to help build managerial
skills of these landowner companies.
Some of the trainings included Conflict
Resoluon and Negoaon Skills, Mind
Your Own Business Accounng and Start
Your Own Business.

Community paticipation, the way to go
Landowner villages in the Wafi-Golpu project area are looking
forward to acvely parcipang in the project aer signing
agreements with the project developer, Wafi-Golpu Joint
Venture (WGJV).
The Community Parcipaon Agreement (CPA) is a first
of its kind in the PNG mining industry and the Babuaf Villages
and Gingen Village celebrated their achievements in separate
signings on October 6 and 9 respecvely.
Through the CPA, the communies will parcipate fully
in development projects and programs as a result of the
development and eventual operaons of Wafi-Golpu project.
Wafi-Golpu Principal Community Affairs and Perming
Manager Reuben Aila said for the Wafi-Golpu project to move
forward all pares have to work together as there were many
challenges ahead.
“Everything, including water or any other issues you have,
the CPA will assist us to address them so that we work together
to benefit from the project,” said Mr Aila.
General Manager Sustainability and External Relaons
David Wissink said the Wafi-Golpu project has taken a bold step
through this arrangement to ensure the community grows with
the project through different community programs and benefits.
“We are doing this now so that the young people can go to
school, the women can have their own programs in the village
and the men can be involved in any business opportunies,” said
Mr Wissink.
Speaking on behalf of the Gingen people, Hengambu Ward
Councillor Steven Giame said they are willing to parcipate in
different business opportunies.
“The people of Gingen are entering this agreement for the
good of the community, for business and community projects.”
LOOKING TO THE FUTURE: The CPA also empowers
women and signing on their behalf is Gingen
women’s representative, Miti Kitubing (above) and
(below) Mike Kennedy shaking hands with Steven
Giame.
The occasion was aended by representaves from the
Morobe Provincial Government, Mineral Resources Authority,
Mumeng Local Level Government, WGJV Community Affairs staff
and other local leaders from the area.
So far nine CPAs have been signed. Other villages that signed
their CPAs included Zimake, Dengea, Timini and Hekeng.
Villages yet to sign their CPAs are Bavaga, Venembeli,
Pekumbe, Zilani, Pokwana and Pokoluma villages all in the Wafi-
Golpu project area.
13

Locals embrace fresh produce project
FRESH WITH POTENTIAL: Mumeng vegetables (above)
that have the potential to be supplied to the Hidden
Valley Gold Mine and the Wafi-Golpu Project; and
participants (above right) put on a play showing
the difficulties of transporting vegetables to the Lae
Market for sales.
Producing and supplying fresh
vegetables to mining operaons can
be a very lucrave business.
But for a simple village man, basic
business management knowledge and
skills is important to see this venture
grow.
To assist in geng such small but
profit-making projects off the ground,
Morobe Mining Joint Ventures (MMJV)
is connuing its support of trainings on
business development.
In early October, 40 locals from the
Mumeng Local Level Government area
successfully completed a Start Your
Business training.
The training was to prepare locals to
supply vegetables to the Hidden Valley
Gold Mine and the Wafi-Golpu Project.
At the closing and graduaon
ceremony, MMJV GM Sustainability &
External Relaons, David Wissink said
apart from resource owners, others can
also benefit from MMJV’s operaons.
With Hidden Valley consuming around
40 tonnes of food monthly and Wafi-
Golpu being the next biggest project and
looking at employing up to 4,000 people,
MMJV is now looking elsewhere to meet
its food needs, and what beer place to
start than to involve the people in the
Bulolo and Huon Gulf districts, where all
of MMJV’s operaons are located.
The development of fresh produce
is in partnership with the Fresh Produce
Development Agency (FPDA).
FPDA is working closely with local
farmers in the Mumeng LLG to maintain
a reasonable supply of local vegetables,
up-skilling them through trainings and
assisng the farmers to maintain an
adequate supply of vegetable seeds.
Discussions are also underway with
chicken and egg producer Zenag to
strengthen village business parcipaon
in terms of supply.
Speaking on behalf of the parcipants,
Mumeng Farmers Group Chairman, Sonny
Sandre said the training was a bonus for
farmers in learning how to manage their
finances well.
He hopes to see more of such trainings
conducted.
The closing ceremony was aended
by representaves from MMJV, FPDA,
Small Business Development Corporaon,
Zenag and the local community.
Locals successfully complete first stage of scaffolding training
Nine young men from Wafi-Golpu have been
given the opportunity to undertake a twoyear
Scaffolding Traineeship with Lihir Gold
mine.
The boys are doing well according
to Rod Clark, CA Business Development
Superintendent.
“They are mainly Grade 10 school leavers
that we selected represenng all landowner
groups from th project area,” says Rod.
“We organised their bank accounts and
they are now being looked aer and trained by
Nica Limited, a contractor to the Lihir Gold Ltd.”
So far the boys have gone through the first
phase which is “What is Scaffolding” and are
on track to complete the Australian Standards
Trade qualificaon.
14

Joining forces to fight Malaria
Malaria sll remains one of the major
killer diseases in Papua New Guinea.
With this in mind, MMJV has gone
one step further in protecng its 4,000
plus employees and communies in the
footprint of its operaons.
In late September, MMJV announced
its partnership with the Oil Search Health
Foundaon (OSHF) to combat malaria in
the Bulolo and Huon Gulf districts.
The program will be centred around
the Mumeng and Wampar LLGs in the
Wafi-Golpu area.
This community-based malaria
program commenced with household
and malaria surveillance surveys and is
focused on five key objecves which are:
1. Improving access to quality early
malaria diagnosis and appropriate
treatment:
2. Decrease malaria related morbidity
by improving knowledge and treatment
seeking behaviour and compliance
3. Decrease malaria transmission by
improving community early treatmentseeking
behaviour to decrease the
community parasite reservoir
4. Strengthen technical capacity at
the local level in accurate and consistent
malaria diagnosis and treatment and
5. Ensure accurate surveillance and
data of malaria diagnosis and treatment
is included in the Naonal Health
Informaon System (NHIS).
In addion, a community residual
spraying programme will commence in
the Wafi-Golpu communies upon the
compleon of the surveys and move to
other high risk communies in the Huon
Gulf and Bulolo Districts.
MMJV also began issuing treated
mosquito nets as a standard personal
protecve equipment (PPE) to all its
employees and contractors at all sites.
Ten thousand treated nets were
sourced through Rotarians Against
Malaria (RAM) and are being distributed
two per employee and contractor for the
protecon of their families from malaria.
Ongoing malaria awareness educaon
is also provided to employees, contractors
and the communies.
The MMJV partnership with OSHF is a
significant mul-year commitment.
MMJV Sustainability & External
Relaons GM David Wissink said, “why
re-invent the wheel when one of the best
community malaria programs already
exists in PNG.
“It’s a very good situaon to have
resource companies like MMJV and OSL
working together for the good of the
THE FIGHT BEGINS: WGJV’s CA officers Emmanuel
Roman (above) and Sheenie Kapen (bottom)
conducting the malaria surveys at Gingen village in
the Wafi-Golpu area.
communies in which we operate.”
The partnership strengthens MMJV’s
current community health program
which has been providing support to local
health authories in the Bulolo and Huon
Gulf districts through the construcon
of four new aid posts, the training of
Village Birth Aendants and Community
Health Workers, and regular community
health patrols focused on the delivery
of basic health services, supplementary
immunisaon programs and specialist
treatment.
15

Elementary teachers sign contracts
Creang the next generaon of
PNG professionals such as doctors,
engineers, farmers and teachers through
an improved and beer educaon system
is the way forward.
Mr Yoman Kumbu, Bulolo District
Elementary Coordinator, made these
comments when he witnessed six
elementary school trainee teachers from
Nau, Kwembu and Winima Elementary
Schools sign employment contracts with
Hidden Valley Joint Ventures (HVJV) on
Friday September 21.
These landowner elementary schools
are located near the Hidden Valley gold
mine, operated by Hidden Valley Joint
Venture – one of three joint ventures that
make up MMJV.
The contracts ensure the teachers
are supported by MMJV in terms of their
salaries while waing for the Educaon
department to put them on the payroll.
For MMJV, educaon in these
remote communies is important. And
through the Community and Regional
Development program, it is working
closely with the district’s educaon office
to support them in infrastructure, training
for teachers, and material support.
Mr Kumbu said it was good news for
these elementary schools.
“Who’s going to take the next
generaon of people in the area to take
on key roles in the mine?” he said.
“That is our job as teachers because we
are creang a human mine, a sustainable
mine, where we are mining the minds of
young ones to take up key roles in the
mine in the future. That is something we
have to be proud of.”
He explained that the Bulolo District
Educaon Division was finalising a fiveyear
plan that would see a number of
elementary schools established in the
district and then converng them into
primary schools.
Paul Giwi, MMJV’s Educaon and
Health Programme Supervisor, said the
contract signed by the teachers was a
one-year fixed-term contract renewable
for another two years, totalling three
years with the contract reviewed every
year based on the teachers performances.
A similar program is being planned
Quick action by ER team saves boy’s life
The Wafi-Golpu Project’s connuous efforts to assist landowner
communies reached yet another milestone recently with a
successful lifesaving medivac of a six year old elementary school
student to the Angau Memorial Hospital in Lae.
Lile Yapu Tom, suffering from a head injury, was rushed
to the Demakwa camp by his father for urgent assistance.
According to the father Tom Gendiro, lile Yapu who was hit
on the forehead by a stone, had blood coming out of the severe
gash, had vomited and was uncomfortable.
Mr Gendiro expressed sincere gratude to the Wafi-Golpu
Emergency Response (ER) team for the quick acon they took
towards ensuring that his son received quick medical aenon.
He believed that what the ER team did saved the life of lile
Yapu.
Larry Watson, Safety Manager for Wafi-Golpu, thanked his
team for responding to the child’s situaon and ensuring he
reached the hospital in me.
SIGNED AND SEALED: The six teachers after the signing
of their contracts of employment.
with the Huon Gulf District Educaon
Office for the communies in the Wafi-
Golpu Project.
Danilla Naino, Head Teacher for Nau
Elementary School, who spoke on behalf
of the teachers, said they would carry
forward some of MMJVs work into the
communies.
The trainee teachers include Mrs
Naino, Helen Kosty (Nau), Ivie Krimbu
and Ruth Waikisa (Kwembu) and Dabung
Giamek and Helen James (Winima).
They all are now keen and eager to
educate the region’s future workforce.
SAVED: Young Yapu outside the surgical ward on
September 30, a day after treatment.
www.morobejv.com