South Sea Gold: Chapter Nineteen

Editorial page banner: WHOSE GOLD IS IT? by Jonathan Sinto

Papua New Guinea has been blessed by God, in the beauty of its landscape, its mountains, islands and seas, and in the glory of its diversity of peoples, languages, and traditions. We are gifted with food from the fertile soil and abundance in the sea, for anyone willing to labor for their family and future.

Now we find that our land is rich in hidden treasures as well. Not only forests and farms, but abundant natural gas, oil, gold and copper under the soil and sea. These are not easily harvested. To bring them up from deep under the earth or sea requires special skills. Some of our sons and daughters have enough education to learn such skills, as young people of other countries do. But we need to continue to improve PNG's schools and universities to train more workers in mining and other industries. There is no scarcity of foreign enterprises who would like to come here. They are eager to come, for they need more of such resources for their own markets, and at the lowest price they can persuade us to sell.

Our country is rich in gold. Many are asking, "Then why are we so poor? Does our gold and our gas belong only to those who extract it? These new-found treasures belong not to just a favored few but to all the people of this nation. Surely those who work in mining are entitled to the fruits of their labor, and those who build a mine or a gas well are entitled to a return on their investment. But they are not entitled to carry the whole lot off to their own country free of charge.

We have no claim to the diamonds of South Africa nor to the vast grain fields of Asia or America, although we may buy some, if we choose, compensating the people of those nations for what we carry to our own country.

Just so, foreigners may buy some of our gold, gas, or oil, but they may not take it all home as a prize. We need funds from the sale of our natural resources to build our roads, construct our hospitals and schools, without the greedy first lining their pockets, be they foreigners or our own countrymen.

What is our government doing to guarantee that a fair price is paid for our resources, to provide enough money to build this nation, without allowing it to stick to the fingers of the few?

Jonathan Sinto is Local News editor of the Port Moresby Journal. His views do not necessarily reflect those of the publisher.

Reaction was mixed as usual, even at the newspaper. The editor-in-chief thought it should increase the number of subscribers. The publisher thought it would hurt advertising income. Student and faculty opinion at the University was overwhelmingly favorable. Those churches who commented from the pulpit were almost all approving; although one or two said the paper did not give enough credit to The Almighty. And one irreverent member of the opposition in Parliament asked who was the designated almighty this month?

Sinto's editorial, reported briefly by Matt Lin in the Hong Kong Chronicle, caught the attention of a board member of the China' government's SASAC commission. The board member visited Mr. Han, the CEO of South Sea Gold's overall operations for Africa and Asia, and demanded an explanation. The frown on his face could only be a harbinger of official censure. The exotic tea and plate of fresh tropical fruit the CEO had quickly provided did nothing to ease tension in the room.

"Bring me up to date on your PNG operations," the SASAC board member said, as he laid his teacup back on the small table by his chair. "Is there some over-arching reason for the delays in copper production in PNG? Your Owego mine seems to be having one problem after another in speeding up production, and your other copper producers there have not been able to compensate for it. Need I remind you of SASAC's goals for providing electricity to the homes and factories of all of China's interior provinces? Our copper stockpile is shrinking. We still need millions of kilometers of copper wire, not to mention the increasing demands of the military and other industries." He inspected his long, clean fingernails as he waited for Mr. Han's excuses.

"The Owego operation has not yet reached the main ore body deep under the mountain . . ." the South Sea CEO began.

"I am aware of all that," the board member interrupted. "My question is, why not? There seems to be one delay after another. Five miners dead. Other miners refusing to work until a taboo is lifted. A major pipe-line broken. Delayed ventilation construction, and not just in this one mine. I want to see more copper coming into China, and more favorable publicity. The only people who seem to be keeping up to speed so far are the news media. Your delays are also impeding our aeronautical industry's needs for rhenium. I understand that you had discovered a source in your new property up the coast in PNG."

"That property is only in development, not in production. And we don't have a major share holding there."

"I suggest that you explore the opportunity. It would be a redeeming factor in balancing South Sea Gold's present performance. You have thirty days to show improvement."

Several second-level officials from diverse PNG government bureaus quietly met together in secret conference. "The Journal editorial is drawing too much public attention to negotiating new mining projects. Don't they know," said one, "how expensive it is to keep the mining internationals happy?"

"Not to mention our own fees to ease passage of favorable laws," added another.

"You've got to spend money to make money," a third hackneyed.

"Of course. But if we spend too much, we don't make any profit ourselves. The solution is to write carefully worded legislation for Parliament to pass. Make it many pages long, and confusing enough so they won't read all of it. Insert a clause deep inside somewhere that authorizes us to negotiate the contracts. Then we each can write our own expense accounts as we like. It's an art form."

"But how do we stop the news media from interfering?'

"Leave that to me."

Landowners near mines in several parts of of the country were already planning how they might benefit from the catch-phrase, "Whose Gold Is It?" Some had genuine complaints; others were opportunists relying on poor public records of past land deals.

"If the gold is on our land, we own it, don't we?" questioned one landowner to his lawyer.

"Mineral rights are not included in a landowner's deed unless it so states specifically," the lawyer replied.

"But you're a law expert. Can't you do something?"

The lawyer put his fingertips together, making a show of considering this. He knew the chances were unlikely, but stating a fact is not the way consultation fees are earned. "I can approach our member in Parliament," he said, slowly and carefully. "But it may be expensive."

An independent placer miner in a small West Sepik village paused in his labor to wipe the sweat out of his eyes. Seeing their father stop for a moment, his two sons took a drink of water. The father examined a tiny gold nugget, hardly bigger than a grain of rice, among the few flecks of yellow in the bottom of his gold pan. "That's the first one today," he said, rubbing the ache in his back; "Not too bad." He carefully added it to the small vial he kept in his shirt pocket. "It should bring a few Kina. All right, boys, let's get back to work, before some big mining company claims our little stream."

Matt was back, after a quick trip to Hong Kong and Beijing. "I talked with Mr. Han at South Sea Gold Headquarters. He had just had a visit from a big official from Beijing, and was even grumpier than I've seen him in the past. He knows the pipeline is way shorter and shallower than allowed; he was in charge locally when the mine was being set up, and when the pipeline was laid, before Li Kao Hsai came on the scene. And he knows that we know, or at least that we suspect it. He's obviously afraid that Beijing will find out and put the blame on him."

Jon Sinto rubbed his jaw, thinking. "The pipe has been there two years or more," he finally said. "Let's say nothing at the moment, and let the tension build."

His phone buzzed. The discussion paused while he picked it up. "Sinto here."

"Mr. Sinto, I have two policemen here at the front desk asking for you."

"Send them up, Maxine'" He raised his eyebrows at his staff. "Maybe we have a new development already."

Moments later, a police sergeant and a constable appeared. "What can I do for you gentlemen?" Sinto asked cordially.

"Mr. Sinto, we'd like you to come with us." The sergeant produced a pair of handcuffs. "You are under arrest."