The Western Provincial Government has agreed to transfer ten percent of its royalty from the OK Tedi Gold Mine to the Mount Fubilan Resource Owners Association.
The two groups, parties to the Ok Tedi Mining Project Memorandum Of Agreement, settled this last week in Kokopo during the review of the MoA.
Under this MOA, the provincial government through the Star Mountains Local Level Government will give two million kina from its annual budget, to the Resource Owners Association.
This payment will begin next year.
The Western Provincial Government and the Mount Fubilan Resource Owners Association (MFRA) reached a compromise to transfer 10% royalty from the Provincial government to the Mount Fubilan Resource Owners Association.
The two groups are parties to the Ok Tedi Mining Project Memorandum Of Agreement.
The agreement was made last week in Kokopo during the review of the MoA.
Under this agreement, the Provincial Government through the Star Mountains Local Level Government will give K2 million from its annual budget to the Resource Owners Association, to sustain its operations.
It was further resolved that of the K2 million, 10% would go to the Star Mountains LLG, while 90% would go to the Mount Fubilan Resource Owners Association.
The transfer of the 10% royalty has been a quarrelsome issue on the OK Tedi Mine MoA review for some time.
Executive Officer of the MFRA, Toby Yakumani, said although there were minor hiccups with regards to the 10% equity, his group was happy with the resolution on this issue.
The parties to the MoA are the State, provincial government, Star Mountain Resource Owners Association and Star Mountain LLG. They have resolved to establish the Star Mountains Special Purpose Authority.
The draft of the resolutions reached in this meeting will be given to the Office of the State Solicitor for legal clearance, before it is passed onto the National Executive Council for final approval for implementation.
The conclusion of the Ok Tedi MoA review process brings to four (4) the number of mining project MoAs that have been completed and ready for signoff by the parties this year.
The other three (3) are Simberi, Sinivit and Tolukuma.
Outstanding MoAs yet to be completed, are Porgera and Hidden Valley which are 90 percent complete, and Lihir which has been stalled due to the IBP discussions by Lihirians parties.
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