The Enga Provincial Government (EPG) presented its position paper on the Porgera Mining Project Community Development Agreement (CDA), to Mining Minister Sir Ano Pala this week Monday.
Enga Governor Sir Peter Ipatas when presenting the paper said that the country had seen positives and the negatives of the mine’s operation in the last 30 years, as stakeholders had five percent share in the project, where the provincial government had 2.5, and the Porgera Special Mining Lease (SML) landowners had the other 2.5 share.
“Now is the time to improve the conditions of the agreement of the past,” said Governor Ipatas.
The new equity shareholding arrangement is 51/49 ownership, where PNG stakeholders own 51 shares while Barrick and its partners own 49. Out of the 51 shares owned by PNG stakeholders, 36 percent is for the State, and 15 percent is owned by Enga Province stakeholders, through Mineral Resources Enga (MRE). Out of this, 10 percent is owned by the Porgera Special Mining Lease (SML) landowners, whilst five percent is owned by the EPG.
Governor Ipatas said his government intended to reach agreement with the State on the breakup of the K700m (K100m/per year) Infrastructure Development Grant (IDG), the K100m/per year Business Development Grant (BDG), the three percent royalties and the two percent (FOB) Tax Credit Scheme, all of which are benefits already committed by the State.
Governor Ipatas told landowners who gathered at the occasion that 15 percent was a considerable amount of shareholding in a project like Porgera, adding that going forward; they would negotiate for more opportunities during the coming CDA process.
A section of the SML landowners and the Porgera Local Level Government (LLG), who were not able to attend the Alotau consultations, also presented their papers to Minister Pala during the occasion.
Sir Ipatas acknowledged the Prime Minister James Marape for his leadership, vision and determination to ensure PNG gets more shares in the new deal.
Sir Ano, when receiving the position papers, acknowledged the visionary leadership of Sir Ipatas throughout the project negotiation process.
