PNG landowners condemn sacking of Ok Tedi Mining chairman

Papua New Guinea's Prime Minister Peter O'Neill has sacked Sir Mekere Morauta as chairman of Ok Tedi Mining Limited and installed four new directors on the board.

The move comes after the government passed legislation through parliament transferring all the shares in the Ok Tedi mine to the state.

Sixty-three per cent of the shares had been held by the charitable trust, PNG Sustainable Development Program (PNGSDP).

The PNGSDP was set up to benefit the people of Western Province, where the country's biggest mine is located.

Leaders of the 162 mine-affected landowning communities held a media conference on Wednesday to demand that the shares be transferred immediately to them.They have also demanded that no dividends from Ok Tedi be spent outside Western Province beginning September 25.

Richard Zumoi, one of the leaders from the Middle Fly River, has condemned the sacking of Sir Mekere Morauta.

He told Radio Australia's Pacific Beat the sacking is "just adding fuel to a fire and that's going to be bad for the people."

"Former prime minister (Sir Mekere Morauta) did all he could to benefit the Western Province people, especially in their sufferings and then the loss to their environment, the Fly River," Mr Zumoi said.

The prime minister has defended the new board, saying it will provide accountable leadership and ensure that the best interests of landowners are given the highest priority.

But Mr Zumoi believes the new ownership structure is "not going to work."

"Those are talks on the paper and by lips and we haven't really seen the mechanics of it," he said.

Mr Zumoi says landowners plan to file legal action on Friday against the government's takeover of the PNGSDP shares.

"There is a lot of rush in that takeover we can challenge and we have the right to sue the government.

"They're stealing from us...It's unconstitutional and it's been very greedy and selfish."

ABC