Porgera LOs to get K56 million – The NationalBARRICK Niugini...

Porgera LOs to get K56 million – The National

BARRICK Niugini Limited will give US$15 million (about K56 million) to landowners on the first day the Porgera mine’s reopening as a social contribution, says state negotiating team (SNT) chairman Dairi Vele.
Vele said this in Alotau on Monday during the opening of the Porgera mine’s Community Development Agreement (CDA) and new terms for the memorandum of agreement that about US$3 million (about K10.9 million) would also be given every year for 10 years. “The company will do a social contribution, but because Barrick has done it, we have told Harmony and Newcrest (for Wafi-Golpu project), they too must do it,” he said.
“This is the first time Barrick has done it for Porgera, when the mines start they will contribute K56 million on day one; that is from the company, not from the Government.”
Vele told about more than 200 landowners and impacted communities in attendance that dividends the landowners (15 per cent) received from the mining operations for 20 years would equate to US$1.5 billion (about K5.5 billion).
He said the CDA consultation in Alotau was about splitting the benefits among the landowners.
Vele said on top of that, the Government had allocated K900 million for Porgera beneficiaries as well while a further K100 million would be allocated for business development grants annually for seven years. “On the Mining Development Contract, it is between the company and the Government,” he said.
Vele told Mining Minister Sir Ano Pala that the SNT was confident that they would finalise the agreement by the end of the week in order to bring it to Cabinet and reach the Sept 16 deadline set by Prime Minister James Marape for the opening.
He said with the current gold price at US$1,945 (about K7,126) per ounce dividends would come to landowners for 20 years to the tune of about US$1.5 billion (about K5.5 billion).
“For the dividend for Kumul Minerals Holdings Ltd, and for the rest of the country on this 36 per cent, it will be US$1 billion (about K3.6 billion) for 20 years because they will have to repay Barrick for the cost of care and maintenance during the mine’s closure, so it is just under K4 billion for 20 years,” Vele said.
“For taxes, it will be just under US$5 billion or K17.8 billion for 20 years.”