Porgera Mine now gives 51% benefits to PNG stakeholders, up from a meagre 5%

 News that matter in Papua New Guinea

For image details, go to http://www.porgerajv.com/Our-Operation/Mining-Operation

Porgera Mine now gives 51% benefits to PNG stakeholders, up from a meagre 5%

PORT MORESBY: The James Marape-led Papua New Guinea Government surely deserves praise for the successful signing of a new deal for the reopening of the Porgera Mine.

The deal has significantly and substantially benefit Papua New Guineans and the country financially.

How?

> IN the old deal, state parties only had a five per cent stake on the mine’s revenue but the new deal will give the state and Papua New Guineans a 51 per cent stake in the mine; and

> UP to 2019, the economic split stood at around 25 per cent, now it is around 53 per cent in favour of PNG stakeholders.

Really, what more can Papua New Guineans ask.

Here are the details as reported by The National:

Deal sealed to reopen mine

April 12, 2021The NationalMain Stories

By PETER ESILA
PRIME Minister James Marape says the Government hopes to achieve greater benefits for Papua New Guinea through more resource projects.
He said this in Port Moresby on Friday after witnessing the signing of the framework agreement with Barrick to reopen the Porgera Mine in Enga.
PNG stakeholders (Kumul Minerals Holdings Ltd, Enga government and landowners) own 51 per cent of the mine.
“This announcement is a significant milestone in the Government’s effort to build strong frameworks in the resource sector which will benchmark future considerations for similar projects nationwide.
“In the old structure, State parties only had five per cent through Mineral Resources Enga (2.5 per cent Enga government and 2.5 per cent SML Landowners), while 95 per cent was held between Barrick Niugini Ltd (47.5 per cent and 47.5 per cent Zijin).
Under the new deal, the equity split is 51 per cent and 49 per cent in favour of PNG stakeholders.
He said there was opportunity for landowners to increase their equity beyond 15 per cent with the additional 10 per cent free equity paid for by Barrick.
The royalty paid was two per cent to the SML landowners and the Enga government but the new deal secured an additional one per cent to three per cent.
“Up to 2019, the economic split stood at around 25 per cent for the PNG stakeholders with equity and taxes,” Marape said.
“The new deal will see that move to around 53 per cent in favour of the PNG stakeholders over the full life of the mine. The new arrangement does not give away any tax concessions which means that the State is able to collect its taxes upfront.
“There is applicable 30 per cent corporate income tax to the project.
“An additional two per cent are paid for fiscal stability, previously conceded by the state.
“In terms of community obligations, Barrick will pay US$3 million (K10.6 million) annually for 10 years to Porgera Sustainably Development Fund, and a further US$15 million (K53 million) upfront to
appropriate categories of landowners.
“The biggest possibility in the agreement is that the State retains the right to acquire the full 49 per cent of the shares in 10 years’ time at fair value and that Barrick finance the required start-up of the mine.”
Marape added that other key benefits captured in the agreement included the immediate employment of citizens and significant personal income tax inflows and development of key leadership and technical capabilities for Kumul Mineral Holdings Ltd in view of their future involvement in mining projects in the country.

Comments

Post a Comment

Popular posts from this blog

Growing unemployment rate in Papua New Guinea

Image
News that matter in Papua New Guinea Growing unemployment rate in Papua New Guinea (Employment stagnant since 2014) PORT MORESBY: Employment in Papua New Guinea (PNG) has remained stagnant since 2014 with millions of unemployed looking for jobs. The formal job market currently can only accommodate between 400,000 and 500,000, Institute of National Affairs executive director Paul Barker says. “As more young people enter the job market this year after graduating from tertiary institutions and schools, the chances of securing formal employment is slim. “Employment had remained stagnant despite the increase in potential workers coming out of educations institutions,” he added. Read on for more details as published by The National : Hard to get jobs January 27, 2022 The National Main Stories By DALE LUMA MILLIONS of eligible workers around the country are looking for jobs in the formal sector, which currently can
Read more

Sugu Valley tribal war death toll rises to at least 30

Image
News that matters in Papua New Guinea Armed tribal warriors on the move in Sugu Valley. Sugu Valley tribal war death toll rises to at least 30 PORT MORESBY: At least six tribes have been fighting in Sugu Valley (Kagua-Erave, Southern Highlands) since Feb 10, 2019, without any signs of an end and peace. In fact, the death toll has risen to at least 30, up from 11 on May 23, 2019, and the opening of a new battlefront in Sumbura near Poroma with multiple deaths reported in 24 wards. Armed tribal warriors on the march into the forests and jungles. PNG Cyber Monitor had on a May 25, 2019, posting ( https://pngcybermonitor.blogspot.com/2019/05/real-life-rifles-bows-and-arrows-bloody.html Real life rifles, bows and arrows bloody fights in PNG ) highlighted the bloody battle waged by tribal warriors armed with rifles, bows and arrows and knives. PNG Cyber Monitor is again highlighting the plight of the villagers who have been living in fear as reported by The Nationa
Read more

Sorcery shame for Papua New Guinea in X’mas

Image
News that matter in Papua New Guinea Sorcery tortures and violence are still being practised in Papua New Guinea in this 21st Century digital era. Sorcery shame for Papua New Guinea in X’mas PORT MORESBY: It was international shame for Papua New Guinea (PNG) this Christmas when sorcery reared its ugly head. Six women were stripped, bound to poles and burnt with hot knives as they screamed in pain, watched by an unsympathetic crowd. In a video that has gone viral in the internet, the women were accused of practising sorcery in Southern’s Enga. Police Comm David Manning described the sorcery torture as vile, inhumane, uncivilised, void of any human decency. “Papua New Guinea cannot progress without letting go of these horrific traditional beliefs. We have launched an urgent probe into the incident in Aiya’s Pawayamo village in Kagua-Erave.” The news break was published by The National : Horror torture of women Decem
Read more