Miner Miner Edition 20.indd - Morobe Mining Joint Venture

Creating A World Class Mineral Province in PNG Edition 20, 2012
BSA delivering results to
Hidden Valley communities
The Benefi t Sharing Agreement (BSA) between Hidden
Valley Joint Venture (HVJV) and Nakuwi Landowner
Association is delivering results.
Within the last two months, the HV landowner villages of
Nauti and Kwembu followed in Winima’s footsteps when it was
their turn to receive a truck and sawmill each, funded by the
Hidden Valley Mine Benefi t Sharing Trust.
At the presentations held separately at each village,
government, mine representatives, community and Nakuwi
leaders encouraged the people to take care of the properties
and use them for the intended purpose of improving and
developing their villages.
Nakuwi Association Executive for Kwembu, Mr Wayang
Kawa said his people had always wanted to see such programs
take place and commended the BSA leaders, comprising three
diff erent landowner groups, for working together closely for
the peoples’ benefi t.
BSA Chairman Rex Mauri expressed his appreciation to
the hard working committee and HVJV, saying the benefi ts
received through the trust fund has strengthened the
relationship between leaders from neighbouring communities
www.morobejv.com
SHOWING RESULTS: BSA Chairman Rex Mauri (with
microphone) making some remarks before handing
over the truck key to the Kwembu Committee
representatives.
in the true spirit of peace.
The trucks and sawmills were the result of the signing of
the Trust Deed in late 2011 following extensive consultation
with the Nakuwi Association and mine area community
leaders.
The purpose of the Trust is to provide additional socioeconomic
benefi ts to the mine landowning communities of
Nauti, Kwembu and Winima, which are tied to the continuing
successful operation of the Hidden Valley Mine.
Starting with an initial contribution of K3 million, Trust
proceeds will be used on community infrastructure, capacity
building, education, training, community development and
business development projects and programs nominated by
the respective village planning committees.
Ongoing funding to the Trust is anticipated to be
approximately K1.5 million per annum based on fi xed and
variable amounts tied to mine revenues.
The Trust is governed by a Board of Governors consisting of
representatives from the Nakuwi Association, Nauti, Kwembu,
and Winima villages, the Morobe Provincial Government,
Mineral Resources Authority, and HVJV, operator of the mine.

2
Editorial
In this issue
Pg 3. Message from HV GM
Pg 4. Safety is nambawan
Pg 5. 10 Life Saving Rules
Pg 6. HV Training steps up
Pg 7. Student trainees achieve
Pg 8. FY12 Mine Review
Pg 9. BI team on a roll
Pg 10. Employees cast votes
Pg 11. First multi-sectoral health
patrol
Pg 12. Cocoa fermentries
opened
“MOROBE MINER” is produced
by the Media and Communications
Department of MMJV. Permission
must be obtained for the reprinting
of articles in this employeestakeholder
newsletter. Send
comments and contributions to
MMJ.Media@morobejv.com. Ph:
472 1703 Ext. 240 or post to 9 Mile,
PO Box 4015, Lae, 411, Morobe
Province.
The MMJV
Monitor
Introducing MMJV Monitor, a column where we feature
letters or emails from our readers. In Issue 19, we received
some feedback and here are a few comments from our good
readers:
Thanks,
That was a nice issue there. A lot given back to the community
too, which is really great.
Terry
PNG Power Ltd
Hi everyone and welcome to this 20th edition of Morobe Miner. A lot has
happened over the last three months, including the General Elections
which saw the Morobe people elect Kelly Naru as the new Governor. Sam Basil
has retained his Bulolo seat and Ross Seymour has won the Huon Gulf seat. We
look forward to working with them all to build a stronger and brighter Morobe
Province.
At home, so many good things happened despite the election related ripples.
In this edition you will fi nd stories of some of these achievements. Stories about
opening of projects funded by our Hidden Valley mine such as the classroom
opening at Malangta Primary, opening of cocoa fermentries, trainings for
Village Birth Attendants and elementary school teachers. These achievements
were the result of strong Public Private Partnerships between us and all our
stakeholders.
We also saw the completion of the fi rst lot of BSA projects delivered to
our landowner communities of Nauti, Winima and Kwembu. This is great
considering we only signed this agreement last November.
At Hidden Valley, it has been some months since the new GM Bevan Jones
joined us; I welcome him and the rest of the new management team at
Hidden Valley to the MMJV team. Bevan and his team are implementing a
number of new safety, training and business improvement initiatives to lift the
performance of Hidden Valley to meet performance targets.
For the Wafi -Golpu Project, all’s well with the recent announcement of the
PFS completion and the signifi cant reserve upgrade for Golpu. The stage is
set for the Feasibility Studies to begin in 2013 after stakeholder consultation
and deliberation by Newcrest and Harmony and will require everyone’s
commitment to progress the project to the next stage.
We also extend congratulations to Conrad Palaulo on his appointment as the
GM for Exploration. Conrad has taken over from Mike Erceg and we wish Mike
all the best in his new role at Newcrest.
I would like to thank each and every employee for your commitment and
tireless eff orts to ensure we achieve our goals. Our values of Honesty, Integrity,
Respect, Working Together, Courage, Creativity & Innovation and Commitment
to our People are translating through our actions in our everyday lives. Let’s
keep building on what we’ve done and are doing to ensure we are making
impacts holistically – within MMJV and our stakeholders.
Finally, I would like to remind everyone to put safety fi rst in everything thing
you do at work and at home.
David Wissink
Editor
Hi,
You and MMJV are doing a fi ne job with the people of Watut/
Tsilistili and Bulolo villages/communities..thanks for including
us on behalf of the entire PNG Haus Lain...thanks to you and
Boina and your MMJV Community workforce.
Nell
Lae Chamber of Commerce
Hi,
Thank you for the newsletter. Looks great!
Mackhenly Kaiok
Ok Tedi Development Foundation
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).

Message from Bevan Jones - GM HV
Iam pleased to be able to contribute
to the fi rst edition of the Morobe
Miner since I started at
Hidden Valley in February.
This edition has a number of
operational articles aimed at
informing every one of the results
from the last 12 months and some
of the initiatives we are implementing
on site to ensure we improve our
operation and achieve all our targets in the 2013 fi nancial year.
I would like you to pay particular attention to these stories and
in the coming months your Managers and Supervisors will be
asking you to get involved with these improvement initiatives
and play your part in turning Hidden Valley into a consistent
target-achieving successful Mine.
On the safety side we have had a very ordinary 12 months
with four lost time injuries at Hidden Valley and an unacceptable
number of High Potential incidents that we were very
lucky did not cause more people to be seriously injured.
It is every Mine employee’s responsibility to ensure that they
and all their work mates leave work at end of the shift and at
the end of their rotation in the same condition that they arrived
in. We need to look after each other and make sure that we are
not exposed to hazardous situations.
We have some excellent safety tools and we need to use
them more often so we ensure we reach our target of zero
injuries. The LLB “Personal Prestarts” are a great example of the
tools we have.
I ask everyone every shift to do a LLB and ensure that you are
ready to go to work understanding what is required of you and
what you have to do to be safe.
Please remember there is nothing more important than
being safe at work and we need to work at this every day.
Hidden Valley Leadership Team Changes
There have been a number of new editions to the Hidden
Valley Leadership Team and I would like to take this
opportunity to introduce the new editions to the team to you.
Johan Botha – Mine Technical Services Manager
Johan has twenty-one years experience
in open-pit, alluvial and underground
mining spanning multicultural work
environments in Laos, Australia, South
Africa and Botswana, mining copper, gold,
diamonds as well as Zinc/Lead/Silver.
Johan has worked for companies such as
MMG Century Mine and of late LXML Sepon Copper Gold
Project, where he was the Manager.
Ashley McAleese – Process Manager
Ashley has previously worked at Straits
Resources Ltd, Mt Muro Gold Mine, as the
Process Manager. He has also worked for
Kagara Zinc Ltd, Mt Garnet Project and at
Xstrata and for Newcrest at Cadia. Ashley
has a Bachelor of Engineering, majoring in Minerals Processing,
from the University of Queensland.
David Wentworth – Business Improvement Manager
David spent 20 years with Toyota
Australia rising from Cadet Engineer to
Production and Supply Chain
Management Roles, a specialist in Lean
Production Methods. He joined the
Mining industry in 2008 with Rio Tinto
to support the Cape Lambert rail
operations and North Parkes as a lean consultant before
consulting with Newcrest’s Namosi Project to develop team
communication and value stream focus in the drilling exploration
stage.
Mark Handley – Training Manager
Mark has spent the last two years
working in Zambia for Barrick where he
managed the Mine Training
Department. Prior to this he worked at
numerous mining operations in
Western Australia in senior training
roles.
Simon Jackson – Mining Manager
Simon is joining the Hidden Valley
team in August and brings with him
a wealth of experience as a Mining
Manager. His last assignment was with
Barrick at Porgera.
Jerry Abel – Fixed Maintenance Manager
Jerry started with MMJV in March
2010 in the position of Reliability
Superintendent in the Asset
Management Department. Jerry has
been focussed on the reorganisation of
the old Asset Management
Department into the newly formed
Fixed Equipment Maintenance
Department were he has been
promoted into the Manager’s role.
Russell McKenzie – Mobile Fleet Maintenance Manager
Russell has spent the last 8 years
working with Thiess Contractors
Indonesia on site in South Kalimantan
and in the Balikpapan Regional Offi ce
in the position of Site Plant Manager
and Plant Operations Manager
respectively. He joins us to lead the
newly formed Mobile Fleet
Maintenance team on site. Please join
me in welcoming them all to our team!
3

Safety is nambawan
At Morobe Mining, safety comes second to none and
the ability to maintain a continual state of emergency
preparedness and respond adequately is absolute priority for
the Hidden Valley Emergency Response Team (ERT), the HV
Bulldogs.
Achieving this state is no easy feat and this means, time,
dedication and constant training including staging emergency
drills and mock scenarios.
The month of June saw thirty nine auxiliary members
attend training sessions covering Fire fi ghting Level 2,
Breathing Apparatus (BA) , First Aid and Basic Search and
Rescue.
Keeping with tradition, a planned shutdown at the mill
during the month provided further opportunity for ERT
members to team up with volunteers and provide a rescue
stand-by for all workers involved. During this period the ERT
auxiliaries and Emergency Response Offi cers’ provided a 24
hour quick response team, who performed atmosphere testing
and extra safety and hazard identifi cation while maintaining a
visual presence in the ore processing area.
As part of their ongoing training and as a site statutory
requirement, the ERT are also required to perform lifelike mock
scenarios across the site. This time the Romeo (drill) Rig was
used as the stage where a mock emergency situation was
called for a casualty trapped under a vehicle.
With only a sixteen minute response time, the ERT acted
quickly and in a timely manner to recover the casualty from
Life is more precious than gold
Life is infi nitely more precious than the Gold we produce. So
as Hidden Valley continues to make progress in improving
our Safety Performance it is important that we continue to set
standards that ensure we are looking after our own lives and
the lives of our work mates.
The introduction of Life Saving Rules at Hidden Valley is one
of the ways we are doing this.
Life Saving Rules set the standard for minimum acceptable
behaviours in situations that could place our lives and the lives
of others at risk and are designed so the entire workforce can
relate to and understand them.
As professional miners there are many things to remember
as we go about our daily tasks, as our skills improve and we get
better at what we do we also need to remember the important
things that help save lives.
At Hidden Valley we don’t want people taking short cuts
in the name of production and we consider the lives of our
workers to be so important to us that breaking these rules can
result in serious disciplinary consequences.
They are in place across the whole site and it is important
that everyone has a good knowledge of them. We will run
an education program on them and they will be part of the
induction so everyone knows them.
Life Saving Rules = Rules that we can all live by.
Simon O’Kane, Safety Manager
Hidden Valley
4
LONG HAUL UP: Members of Hidden Valley ERT led by Emergency Response
Supervisor, Ronald Etep (left) carrying the casualty from Romeo Rig to a
waiting ambulance at the top of the hill during the lifelike mock scenario.
under the vehicle.
This exercise required the cooperation of the site
paramedics who assisted with stabilising the casualty before
the ERT could make the long journey carrying the casualty to
the waiting ambulance at the top of the long steep hill.
It was another eventful month, once again demonstrating
the professionalism and dedication of the HV ERT.
Consequences of
not complying with
our Life Saving Rules
• Breach of a Life Saving Rule will be
classifi ed as an incident which will be
fully and transparently investigated.
• If an investigation fi nds an individual
has been deliberately negligent,
disciplinary action will be taken up to
and including a fi nal written warning
and dismissal.
• Where its determined that any
individual was grossly negligent
in their actions, knowingly worked
outside of the Life Saving Rules
or has repeatedly made errors of
judgment in their application then
the individual’s employment contract
may be terminated or site access
privileges removed.

SAFETY TIP: The 10 Life Saving Rules
Rule Details
Report all incidents, accidents and hazards
immediately to your supervisor (correct
hazards immediately if possible).
Comply with positive communication
requirements at all times.
Only maintain or repair plant and equipment
when it is correctly isolated from all energey
sources
Always come to work “fi t for work” and not
under the infl uence of drugs or alcohol.
Only operate and maintain plant and
equipment when competent and
authorised to do so.
We will obey danger and mandatory signs
before entering designated hazardous areas.
We will only work a safe distance from
suspended loads or near supported ground
and correctly isolate areas below.
We will always take eff ective safeguards
when working in an area where they could
fall 1.8 metres without having eff ective
safeguards in place.
If the job you are about to start does not
have an approved procedure you must
complete an appropriate risk assessment,
such as a JSEA, before starting the job.
Never use mobile phones or personal music
devices whilst operating vehicles or plant.
Report all accidents and incidents even if they are minor.
Everyone has a duty of care to report any conditions or events
that have the potential to cause injury or damage. Not doing this
puts us and others in danger.
Compliance with the site positive communications protocol is
required at all time while driving/operating light and heavy
equipment on the mine site.
Eff ective isolation shall be interpreted as having achieved “zero
potential” and having the relevant plant and equipment locked
out and/or taged, and all energy (liquids and gas under pressure,
mechanical, electrical and temperature) sources isolated or
removed. Never remove another person’s personal danger tag or
lock unless authorised to do so.
Alcoholic beverages and illicit drugs shall not be possessed or
consumed at Hidden Valley.
Only personnel who hold the required competency, and who have
been given site authorisation, shall operate mobile plant or perform
maintenance work.
All hazardous areas are identifi ed, appropriately signed and
barricaded/ bunded where necessary. A person entering the
area must seek permission and sign onto the JSEA or controlling
document or be aware of the procedures in the area. Access to
Confi ned Spaces is strictly controlled. Only authorised personnel
enter restricted or hazardous areas. Temporary restrictions are
clearly defi ned and in place only for the duration of the hazard.
Including barricaded Mobile Equipment.
To ensure no one is at risk of being struck by a dropped object or
falling ground. Lift areas are clearly barricaded at a safe distance to
prevent people from inadvertently entering the lift area. Tag lines
are used to control loads without being under them. Risk areas
with unsupported ground such as High Walls / Pit edges/Mobile
Equipment are barricaded or clearly signed at a safe distance.
When working above, failure to correctly isolate the area below
exposes other personnel to the hazard of falling rock and debris.
All work activities where a person can fall and sustain injury
shall only be conducted when eff ective safeguards are in
place. Eff ective safeguards may include engineering platforms
guardrails, scaff olding and Mobile Equipment approved manboxes
Elevating Work Platforms, fall restraint/arrest harness with
the lanyard secured to a solid anchorage point.
The minimum requirement for undertaking any operational,
maintenance or construction task is a JHA. Always do an LLB
before starting any new or unfamiliar task to prompt you to ensure
adequate controls, including a JHA are in place.
While at work your full attention is required to be on task, phones
and personal music devices are a distraction and can prevent you
giving your task your full attention, particularly while operating
equipment or plant.
5

Training department steps up
We have recently restructured our Training Team at Hidden
Valley to ensure we are able to cope with the demands of
our business needs and the needs of our people in reference
to their Professional Development.
Our team has grown in strength from 38 to 49, consisting
of 38 LRE positions and 11 ERE positions. We have formed a
centralised Training Department at Hidden valley to ensure a
consistent and high standard training is conducted in all areas
of the mine. By working together we will achieve consistency
throughout the site.
We have introduced additional training sections to the
already existing Production, Processing and Projects team for
Fixed Plant Maintenance, Mobile Maintenance and Trades
Apprenticeship Training.
Our teams within Processing and Fixed Plant Maintenance
have been extended to allow us not only to develop our
existing trainers but to give an opportunity to our workers to
progress into Training roles.
We believe the structure we have dev eloped, with the team
currently in place and in conjunction with the new members
joining our team, we will be able to develop, implement and
deliver a high standard training that focusses on operating for
profi ciency.
Furthermore Supervisor Professional Development will be
at the forefront of our training initiatives; we plan to off er our
Supervisors a program that will not only make them recognised
leaders but will give the skills to manage their areas of
responsibility safely and profi ciently.
The Hidden Valley Community Aff airs Team have been
organising weekly mine site visits aimed at bringing groups
of people from various communities to Hidden Valley to show
them how the mine operates.
The program not only covers Hidden Valley landowners but
also people living in Wau and Bulolo, as well as communities
along the Watut River and the highway to Lae.
On Thursday June 21 a group of 25 leaders from the
Sambio area visited the mine and were taken to see the
Hidden Valley Pit as well as the Hamata Mill and tailings
storage facility (TSF).
Hidden Valley mining engineers explained to the visitors
that the company was spending a lot of resources, building
hard rock dumps and sediment traps around the pit while
Environment offi cers showed the well established revegetaion
program which has signifi cantly reduced the amount of
erosion from exposed slopes.
The environment offi cers took the visitors to the Mill and
explained the process of extracting gold and silver from the
ore and the storage of the by-product, or tailings, in the TSF.
They also learnt about the construction and management
of the TSF, that is designed and built to world class standards,
and is the only one of its type in PNG.
The Sambio leaders, whose people live along the Watut
River, said that they had heard many stories and rumors about
the Hidden Valley mine discharging tailings and chemicals into
the river but they now realise that this is not true.
“Mipla harim kainkain stori na i gutpla stret olsem mipla yet
LEARNING THE TRADE: Heavy Equipment Training being carried out at Hidden Valley.
The Training Team at Hidden Valley has many
challenges ahead however we will embrace each challenge
with a new outlook; we will achieve our goals and ensure our
workforce is equipped with the knowledge and expertise to
carry out their duties safely and profi ciently.
Mark Handley, Training Manager
Hidden Valley
Sambio villagers learn about mining operations during visit
6
FIRST HAND EXPERIENCING: Hidden Valley Community Aff airs Team with some of the
25 people from the Sambio area who visited the mine.
ikam na lukim stret long ai na kisim klia toktok long mine yet.”
They thanked HVJV for bringing them to the mine site so
they could see that there were no tailings being released into
the river and that the mine was setting very high standards in
the area of safety and environmental management.

Unitech students gain skills and knowledge
Hidden Valley’s Wau-based Community Aff airs (CA) team
recently held a small ‘kaikai’ to farewell three fi nal year
students undertaking the Communication for Development
Studies course at the PNG University of Technology.
As part of their fi nal year program, Brendan Sanga, Nagiob
Jesse and Delilah Kaisom were attached with the Social
Development & Monitoring Section for the last fi ve months to
satisfy their industrial training requirements.
Two of the three students, Brendan and Nagiob thanked
the Hidden Valley Management and CA Department for
giving them this opportunity while praising the company’s
contribution to the development of PNG’s Human Resource.
Brendan said that he was so privileged to be working with
a very supportive and dedicated team that has taught him
the demands, challenges and expected outcomes of working
in the mining industry. He has learnt a lot of things during his
short attachment and hoped to apply these learning’s in his
future endeavours.
“It’s been a long journey from being a village boy going to
Lae in pursuit of an education. I could never have dreamt of
making it this far [HVJV industrial training]” said Nagiob. “This
is truly a blessing and I am humbly thankful to HVJV for this
opportunity.”
He added that the professionalism and commitment
exercised by the CA staff had been his greatest motivation and
challenge therefore Hidden Valley can be proud that it had
helped him set his foundation well by instilling a positive work
attitude which he didn’t think he’d acquire anywhere else.
Social Monitoring & Programs Coordinator, Walter
Pondrelei, on behalf of HVJV thanked the students for their
positive contributions towards helping the SD & Monitoring
Section achieving the sections outcomes and encouraged
them to put into practice what they had learnt during their fi ve
months attachment.
A small presentation of bilums from the Buang and
Biangai areas where given to them including spears and a
complimentary HVJV bag with some promotional items as an
acknowledgement from the CA staff .
The councillor of HV landowning village Winima, Kaia
Korua also witnessed the occasion and commended HVJV for
allowing students to gain exposure likening them to regular
experienced CA offi cers.
The students’ attachment ended in June.
Hidden Valley assists local martial artist in gold medal quest
Gesa Mesak from Sikon village in
the Menyamya district of Morobe
stands a little below 5 feet tall and
resides at the Seven Block in Wau
town.
Besides being employed with
NCS as over the last four years,
the diminutive Menyamyan is an
accomplished martial arts Karate
professional representing PNG
internationally.
In September 2011, HVJV assisted
Gesa with K1,000 monetary donation
to attend the South Pacifi c Games in
New Caledonia.
This year HVJV has again supported
him by paying his tournament fees that
allowed him to take part in a Karate
Technical Seminar on June 24 to July 6
as well as supporting his participation at
the 23 rd Karate Championships from July
7 to 9, 2012.
Gesa expressed sincere thanks to
the HVJV management for supporting
his ambition outside of his formal
employment with NCS Hidden Valley.
THANK YOU, FAREWELL AND GOODLUCK: Winima Councillor, Kaia Korua (left) with
the trainees and Wau based CA staff during the farewell kaikai at the Wau Base.
ABOVE: Brendan at Akikanda village conducting genealogy updates.
POCKET DYNAMO: Karate professional, Gesa Mesak in
his team PNG uniform.
7

FY12 Hidden Valley Mine Performance Review
The last year was a diffi cult year for
Hidden Valley Mine during which
numerous hurdles were faced on the
safety, environmental and operational
fronts. It was a hard race which took its
toll in the form of four Lost Time Injuries
(LTI’s), 24 Signifi cant Potential Incidents
(SPI’s) and a short-fall of 40% on our
gold metal production. Given the SPI
statistics, we were very lucky that more
people were not injured. These results
should serve as a reminder to keep our
focus on safety issues, irrespective of the
multiple other issues we face on a daily
basis.
During the early stages of FY12,
performance was not too far behind Plan
despite having no Overland Conveyor
(OLC). The next hurdle, a failure of the access
road into the Hamata pit, forced us
to remove mining equipment from Hamata
stage 1 pit and commence Hamata
Stage 2 mining. While this gave some
advantages in regard to supply of material
to the Tailings Storage Facility (TSF),
it impacted the ability to supply Hamata
ore to the mill at budget rates.
Then started our run of LTI’s, with people
being hurt at work in incidents that were
triggered by poor risk assessment, poor
decision making and poor supervision.
Along with the four LTI’s we also experienced
24 SPI’s which indicated that we
were very lucky that more people were
not injured.
One of these LTI’s resulted in the Chief
Inspector of Mines ordering that all
heavy haulage to the mine (along the
access road) cease while an investigation
is conducted into the causes of the incident
where a HVT truck ran off the road.
This haulage stoppage in early October
caused us to deplete fuel and reagent
stocks which we were unable to get back
under control as the wet season hit.
As a result we had to shut the mining and
milling operations as fuel and reagent
stocks became too low in January to
continue operations when the road was
washed out at Bulolo and other parts of
the Lae/ Bulolo highway, including the
Kumalu crossing.
The OLC returned to operation in October
2011 at reduced rates, while trucking
continued along the Hidden Valley
-Hamata road. There were still outstanding
issues to resolve with the OLC but the
belt was replaced and all frames repaired.
8
All Injury Frequency Rate (8 people being injured each month)
Many improvements were made to belt
monitoring and material control on the
belt which will place us in a better position
for ore transport.
Water management, in particular
discharge rates, came to the forefront in
Quarter 2. At one stage we conciously
stopped discharging water to ensure
that all our systems and processes were
operating correctly to meet discharge requirements.
The wet season again came
to the fore causing a dramatic increase
in water volume in the TSF. As a result,
an application had to be made to the
Department of Environment and Conservation
(DEC) for a special permit to
discharge water from the TSF at higher
rates (500m3/hr) than licensed (320m3/
hr). This temporary modifi cation to our
permit allowed us to decrease water
levels in the TSF pond to manageable
levels and the temporary permit was
withdrawn in July 2012.
In December the site experienced a
signifi cant earthquake centred below
Wau. While no immediate damage was
observed we believe that it contributed,
with the high rainfall, to a series of mini
slips and ground subsidence along the
Ridgeline, impacting accommodation
block ‘T’ and the Mess facility. We also
observed some cracking on the high
wall at Hidden Valley in January, which
caused us to close Stage 2 pit for 3
months while we mined out the cracks
to restabilise the pit wall. This had a
major impact on spatial mining plan
compliance and prevented the mining
of high grade mining areas underneath
and adjacent to the impacted area.
Mining and milling performance was
signifi cantly impacted by the resulting
shortage of available high grade ore
coupled with the rain of November to
January.
The operation was starting to recover its
momentum in the last quarter when Mill
wear liners became an issue forcing two
unplanned shuts in May and June. The
resulting impact can be seen in the gold
and silver metal production which fell
way short of expectation by year-end.
The impact of this inability to meet Gold
and Silver production targets was that
the Business had a negative cash fl ow of
K130.7 million for fi nancial year 2012. A
result that we cannot aff ord in the future
again!
With the start of the new fi nancial year
on July 1 2012, the clock has been reset.
We can all make a new start. We cannot
change history but we can change our
future by taking control of our own destiny,
the destiny that we have set when
we submitted our FY 2013 budget. It is
now up to us to step up to the plate and
achieve the goals and targets we said we
shall.
I look forward to FY 2013 when we
will work and perform together as a
team and contribute to the success Hidden
Valley will achieve in FY 2013!
Please remember in order to achieve this
success, in the paraphrased words of Sir
Winston Churchill:
“It is not enough to do our best; we must
do what it takes to succeed!”
By Bevan Jones
GM Hidden Valley

Business Improvement team on a roll
Business Improvement (BI) at Hidden Valley is facilitated by a
team of four who are committed and determined to get the
job done. And they have a goal!
Over the next 12 months, the team will focus on the
business value stream to identify and remove impediments to
achieve the FY2013 budget.
The team is supervised by Anna Papat, an experienced
HR and Business Improvement practitioner and managed by
David Wentworth.
The team will employ two additional business analysts to
support root cause data analysis and operational trends and
risks. The support from the advisors will also look closely at all
HV operations and identify any issues relating to downtime
and recurrence issues, and facilitate a process to resolve the
problems.
Recent BI activities have included focus on the HVK Ore
Haulage, equipment utilisation, tonnes moved and cycle time
reduction to the mill, refurbishment and implementation
of the IBIS employee roster system, enabling improved
departmental staff management, camp management and
travel planning management.
New mobile fl eet maintenance team set up
July 1 heralded the start of a new and exciting era at Hidden
Valley mine when the Hidden Valley Joint Venture (HVJV)
took over the management of the Mobile Fleet Maintenance.
Prior to this UMW the PNG Komatsu dealer performed this
function for the mine.
It was decided for a number of Business Improvement
reasons that this service would be better managed in-house
and I have been assembling a team to lead the newly formed
department on site.
HVJV worked with the Management of UMW to ensure
that there was an orderly handover and all UMW staff
who wanted to come and work for HVJV were given the
opportunity to do so.
These people have now transitioned into the Hidden
Valley team. We would like to extend a warm welcome to all
those who have joined us.
There also has been a number of new people who have
been recruited as well to help lead this major organisation
change.
There is a big task ahead for the Mobile Fleet
Maintenance Department as there is a large back log of repairs
and component change out that are required to keep the fl eet
functioning at the levels required for the mine to be successful.
Our main aim going forward is to ensure that we have a
productive and reliable fl eet.
To do this we have to change our focus from reactive
breakdown maintenance to planned maintenance performed
to a high standard that ensures the Mining t eam can meet
their targets.
I would like to thank Sandra Almeida and Bebae Konie
CLUTTER FREE: The BI program started off with a major
clean up and sorting out of equipment and tools in the
Light Vehicle Workshop and Tyre Bay 1.
READY FOR ACTION: Some of the new Hidden Valley Mobile
Fleet Maintenance team.
and their team from the HR Department for their hard work
during the transition period.
They worked tirelessly to ensure that the on-boarding of
our newest employees was done as quickly and professionally
as possible.
Russell McKenzie
Mobile Fleet Maintenance Manager
Hidden Valley
At Morobe Mining Joint Ventures, our Vision is to create a world class mineral province within PNG. And we strive to achieve this by our living our Values of Honesty,
Integrity, Respect, Working Together, Courage, Creativity & Innovation, and Commitment to Our People.
9

Employees cast their votes
Local eligible HVJV employees including contractors joined
the rest of Bulolo district, Morobe and PNG when they took
to the polls in June 2012.
For the Bulolo locals rostered to work at the remote Hidden
Valley site during the polling period, all was not lost to register
their votes for their next Parliamentary Leaders.
With strong support from the HVJV Management team,
a total of 227 employees were able to peacefully cast their
votes over a period of two days, starting Saturday June 30 and
ending Sunday July 1 ensuring they did not miss out during the
polling period in the Bulolo district.
On Saturday, fi ve polling offi cials from the PNG
Electoral Commission assisted by their polling scrutineers
covered employees from the Hidden Valley administration
departments, National Catering Services, UMW Niugini Ltd,
Supply and Logistics, and Hidden Valley Contractors.
On Sunday the exercise continued with employees from
the Mine Operations, Mill and Processing, Maintenance, Fixed/
Mobile maintenance and other line departments voting. Even
the night shift workers were catered for.
The poll offi cials were impressed with the voting
atmosphere and the general conduct of voters. They expressed
their appreciation to the HV Management team and other line
departments for providing logistical support to help facilitate
the process on site for the employees.
On completion of the exercise, HV HR Superintendent,
67 year old woman completes skills training
“
Anyone who stops learning is old, whether at twenty or
eighty,” goes the popular saying.
For sixty-seven year old Kaya Kagowe, her thirst for
knowledge drove her successfully to complete a two-week
long Small Scale Mining Training in Winima recently.
Mrs Kagowe was one of fi ve female participants who
attended the training facilitated by the Mineral Resources
Authority (MRA) and sponsored by Hidden Valley Joint Venture
(HVJV) with funding of more than K27,000.
The outspoken grandmother urged youths and parents to
make it their business to practice what they have learnt from
the Level 1 training.
Mr Al Comparativoof MRA said they would like to ensure
that skills and knowledge are imparted on to small-scale
miners with its improved training facilities in Wau.
He thanked HVJV, one of three joint ventures that make up
Morobe Mining Joint Ventures (MMJV) for funding the training.
MMJV’s Community and Regional Infrastructure
Superintendent, Robert Naris says the company is committed
to support such programs under its capacity building program.
Mr Naris said MMJV would also like to continue to work
in partnership with the government at all levels to achieve
its aspirations to improve the lives of the people in village
communities.
The training at Winima was attended by 27 small scale
miners from the two landowner villages of Winima and
Kwembu.
The Level 1 training covers simple mining methods;
Level 2 provides knowledge and skills on the use of simple
mechanized equipment like water pumps, high bankers and
10
MAKING THEIR MARK: HVJV employees along with
contractors line up to cast their votes on site.
Bebea Konie found time to thank the polling offi cials and
scrutineers for coming out of their recognised polling areas
and providing local employees rostered at site the chance
to vote. Over 50% of the total employees at Hidden Valley
including contractors come from the Bulolo district.
Acting HV General Manager at the time, Johan Botha, also
thanked all employees that took part and for supporting the
conduct of polling at HV which made it a success.
READY TO MINE: The small scale miners with their
certifi cates.
suction dredges while Levels 3 and 4 are for miners with
Alluvial Mining Leases from MRA. These levels off er training on
mechanized operation using equipment and machinery with
higher capacity for increased production.
These trainings are conducted in a holistic approach to
ensure the mining operation is managed by best business
practices for sustainable income generation for the miner after
operation closes. Environment rehabilitation is also part of this
training.
MRA has plans to facilitate similar trainings in other parts
of Wau and Bulolo, and in the Lower, Middle, Upper Watut and
Wafi areas in the Huon District.

First multi-sectoral health patrol completed
Lack of health services still remains a
major concern for many Papua New
Guineans in remote areas today.
Given the reality of these present day
circumstances many resource developers
are working in partnership with the
government to address this life saving
need.
Such is the importance of this vital
service that the Community and Regional
Development (CRD) Health Team
undertook a month-long health patrol
recently which covered villages along the
Upper, Middle and Lower Watut area.
CRD’s Health Superintendent, Dr
Thomas Vinit said the patrol was the fi rst
of its kind as it involved a multi-sectoral
team of professionals that dealt with
preventative and curative health services.
“Health should be everybody’s
responsibility if it is going to be eff ective
and improve the quality of life of the
people,” he said.
The multi-sectoral health patrol was
conducted in May for communities in
the Wau-Bulolo and some parts of the
Huon Districts in partnership with the
National Agricultural Research Institute
“Health should be everybody’s
responsibility if it is going to be eff ective
and improve the quality of life of the
people,” Dr Thomas Vinit
(NARI), the Papua New Guinea University
of Technology (Unitech) and the National
Department of Health (NDOH).
The objectives of the patrol were to
assess the diff erent patterns of diseases,
conduct a situational analysis of social
determinants that aff ect the eff ective
delivery of health service in diff erent
areas, and introduce and promote the
Healthy Island concept.
As part of the health patrol’s scope,
routine medical checks were done on
children and adults in all the villages that
were visited including Kwembu, Nauti,
Society, Latep and Leklu in the Upper
Watut, Dambi, Wawas, Pokwana in the
Middle Watut and at Tsiletsile, Wonkings
and Goraris in the Lower Watut.
ROUTINE CHECK-UP:
Dr Thomas Vinit
examining a baby at
the upper Watut
village of Latep.
GETTING IT RIGHT: Vesna Tomala, a UNITECH
Industrial Trainee student collecting information
from a mother at Leklu as part of the health survey
conducted during the patrol.
11

Lower Watut farmers get fermentries
More than 2,000 rural cocoa farmers in Lower Watut of
Morobe Province are now able to produce higher quality
beans with the commissioning of fi ve new fermentery facilities.
Farmers from Lower Watut, representatives from Morobe
Mining Joint Ventures (MMJV) and Huon district government
offi cials celebrated this achievement in June by opening the
fi fth fermentery at Mafanazo Village, signalling the completion
of the fi rst lot of facilities.
MMJV has seen the need for sustainable development in
the area and for that reason continues to not only encourage
but provide capacity to locals.
One such these sustainable ventures is cocoa farming and
fermentation which is evidently an agricultural gold mine for
the Watut people.
MMJV’s Community & Regional Development Manager,
Benjamin Kamaya, Wafi -Golpu’s Community Aff airs Manager,
Rolland Allbrook, and landowner’s representative, Nawae Boga
encouraged the farmers to work together to develop quality
cocoa.
Mr Kamaya and Mr Allbrook said MMJV was committed to
working closely with the government and other development
partners to promote agriculture as a sustainable resource for
the province.
HVJV provided a funding of K45,000 for the installation of
the three fermentery and an addition support of K35,000 in
logistics and materials for fermentation boxes and sheds for all
fi ve fermentries.
Huon district provided K50,000 from their JDPBC for two
Malangta Primary School receives new double classroom
Malangta Primary School students in Bulolo district had
every reason to celebrate when they opened their new
two-storey double classroom on June 22.
For years the students endured run-down facilities and
overcrowding issues but that all ended when HVJV built the
double story – double classroom at a cost of K354,000 in
support of the Bulolo District Education Plan.
Provincial and district offi cials, Hidden Valley
representatives, Malangta teachers, students and the local
community all came together on the day to celebrate the
opening.
MMJV’s Community & Regional Development Manager,
Benjamin Kamaya, said the education program was focused on
building capacity in the district.
District Education Coordinator, John Tsipet thanked HVJV
for the infrastructure support over the past two years. He said
the company had projects all around Bulolo District delivering
long term benefi ts to the people.
Mr Tsipet urged parents and guardians to ensure their
children attended school and got the education they deserved
for their future development.
Government, school and village representatives urged the
students to look after the facilities.
CELEBRATING ACHIEVEMENTS: Locals celebrate the
opening of the fi fth fermentery ( in the background)
at Mafanazo village.
fermentries and a 30 horsepower motor engine for the farmers
to transport their cocoa downriver by dugout canoes.
The event also saw the offi cial launch of the Lower Watut
Cocoa Farmers Cooperative Society, a strategic step forward
for farmers as they push to crack bigger markets.
The farmers span across 14 villages of Lower Watut and
through these initiatives, they aim to yield improved cocoa
varieties and extend their marketing supply chain.
EXCITEMENT ALL AROUND: Students and villagers
take a look at the new classroom.
The double classroom was funded under HVJV’s 5-year
Community & Regional Development Plan which focuses on
education, health, agriculture and infrastructure.
www.morobejv.com