MINISTERIAL PRESS STATEMENT

APPROVED FOR RELEASE
Hon Geoffrey Kama, MP
Minister for Environment & Conservation and Climate Change

1. There has been much publicity in the media and social media regarding the Basamuk Incident. This is my first time to address the Press since the Incident. I would like to provide an update of events that transpired and measures we have taken to address the Incident.

2. I wish to inform the public on the Slurry Spill Incident that took place at the Basamuk Processing Plant which leaked into the sea off the Basamuk Bay.

3. I can confirm that the spill incident occurred in the early morning hours around 4:00am on Saturday, 24th August 2019.

4. A technical failure on the slurry pump at the neutralization surge tank leading to the processing plant caused the spill to occur. The spill entered a bunded containment area which eventually overflowed into a stormwater drain and entered to the sea off Basamuk Bay.

5. I cannot give any further information on the technical failure as these are matters currently under investigation by my organization and Mineral Resources Authority (MRA) to establish the exact cause of the incident.

6. It is understood that certain amount of slurry overflowed from the surge tank within the process plant and drained into the sea. The sea waters along the Bay was discoloured red maroon along the Wharf area shore line at a place called East Duman. The sea discoloration was visible for at least two days, that is, 24th and 25th of August 2019.

7. Immediately after the spill was detected, the company's emergency and response team was activated and their Health Safety and emergency response units were deployed. Within the next hour by 5:20am, the company reported as taking immediate corrective measures to rectify the failed pump, and to cordon off the spill from discharging any further slurry into the sea at Basamuk.

8. A senior officer from the Conservation and Environment Protection Authority (CEPA) was dispatched to Madang and then onto Basamuk site on Monday morning, 26th August 2019. On the ground was the Chief Mine Inspector who arrived on Sunday, 25th August to take immediate control of the processing plant.

9. Relevant water quality samples of the marine waters and any possible threat to marine organisms including physiochemical impacts on marine water quality and marine resources near the sea shore areas were assessed and recorded.

10. Samples were taken and they have been dispatched to Brisbane, Australia for analysis and results will be made known in a detailed investigation report.

1 1. The good Governor of Madang, Hon. Peter Yama accompanied me to Basamuk Bay on Sunday, 1 st September 2019. I wanted to physically see for myself the spill incident area and to talk also to the local communities. I had the opportunity with the Honourable Governor to meet with the affected communities living within the vicinity of the Basamuk Bay Processing facility to hear from them first hand. I also visited the spill incident site.

12. No doubt a slurry spill comprising of very fine red clay material entered the Basamuk Bay and caused red discoloration of the shoreline area on Saturday, 24th August 2019. I am also pleased to announce here that the red discolouration of the waters on the shoreline has naturally diluted and the waters are clear now.

13. Of course where this fine clay material sits as it settles through the water column and on the reefs is currently being monitored and investigated upon which a detailed report will be prepared and presented.

14. I was impressed with the resilience of the Basamuk Bay community. They are witnessing a major development taking place on their door steps. A spill incident occurring also at their door steps is unacceptable and must not happen again.

15. Best preventative measures have been implemented and enforced immediately. Together with my brother Minister for Mining we will continue to monitor the situation and ensure that these best preventative measures are enforced.

16. Any discomfort caused to the community as a result of the spill incident is currently being addressed and any scientific facts and results will be announced as soon as a detailed report is completed.

17. As I mentioned to the community at Basamuk and company officials, we will apply the law as it now stands. We will be fair to all and more importantly we must not allow such incidents to happen again.

18. Having said that we must be mindful also that any decision we take must be based on sound scientific evidence and site investigations conducted by our officers.

19. My Technical Officers from CEPA will continue to monitor the situation in collaboration with the MRA.

20. I therefore, would like to assure the country and the communities in and around Basamuk Bay to keep calm as we are working around the clock to address the situation and restore normalcy.