Fed: BHP restrained on Ok Tedi

AAP General News (Australia)
12-21-2001
Fed: BHP restrained on Ok Tedi

By Alan Gale

MELBOURNE, Dec 21 AAP - The Supreme Court of Victoria has stopped BHP Billiton-controlled
Ok Tedi Mining Ltd (OTML) from asking New Guinea villagers to effectively opt out of a
class action against the company.

The court was today told the mining company was party to settlements which would not
have been approved by the court as "fair and reasonable".

Jonathan Beach, QC, and two Papua New Guinea landowners told Justice Bernard Bongiorno
the company was acting in contempt of court.

Justice Bongiorno extended injunctions against OTML gaining further signatures from
villagers until the complicated case was heard in early February.

Two leaders of Ok Tedi landowners, Rex Dagi and Gabia Gagarimambu, are using law firm
Slater and Gordon to prosecute a class action on behalf of some 30,000 villagers.

They allege OTML has not abided by the terms of settlement of an earlier class action
they brought on behalf of the villagers seeking damages for environmental damage caused
by the mine.

This larger, complex case will be heard once the immediate matter of who has opted
out to pursue individual actions has been settled.

Meanwhile, Slater and Gordon said it was also preparing a constitutional challenge
against Papuan legislation to approve BHP Billiton's exit from the Ok Tedi copper and
gold mine.

PNG opposition leader and founding prime minister Sir Michael Somare has instructed
the firm to mount a constitutional challenge to the legislation which is awaiting the
signature of the PNG governor-general.

The new Mining (Ok Tedi Mine Continuation [Ninth Supplemental] Agreement) Bill 2001
aims to authorise the mine's continued operation after BHP's exit, including the end of
its management agreement.

The legislation provides a legally binding framework, which recognises the economic
and social benefits and also the environmental damage due to the Ok Tedi operation, and
validates Mine Continuation Agreements signed by village representatives from areas affected
by the mine.

Today's court hearing in Melbourne was told that by seeking signatures to the agreements,
OTML was in contempt of court rules that settlements of class actions had to be approved
by the court.

AAP ag/gfr/mg/br

KEYWORD: OK TEDI

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