THREE WORKSTREAMS 1. BOUGAINVILLE MINING POLICY Department of...

THREE WORKSTREAMS
1. BOUGAINVILLE MINING POLICY
Department of Mineral and Energy Resources





Benefit sharing

Landowner:
Rent (Kina per square hectare)
Compensation for actual damages
Landowner’s royalty (1 1⁄4 % of sales revenue)
5% free equity share (5% of declared dividends, in early years no dividends)
Affected Communities:
Community development agreement direct expenditure (1 1⁄4 % of sales revenues)
ABG:
Regional development royalty (1 1⁄4 % of mineral sales revenue); can be expended by ABG on infrastructure agreed with Councils of Elders, allocated in an equitable manner throughout Bougainville)
Department of Mineral and Energy Resources (DOMER)
Production levy for operations budget (0.5% of mineral sales revenue)
(If the combined Bougainville take exceeds around 5% of sales revenue, it is less probable that mines will be developed. No mines equals no revenue for anyone)




PRESENTATION 3
FINAL DRAFT MINING ACT AND REGULATIONS
LANDOWNER AND ABG EQUITY
Department of Mineral and Energy Resources
.
LANDOWNERS
5% free equity share (5% of declared dividends, in early years no dividends) +5% additional available for acquisition
AUTONOMOUS B(OUGAINVILLE GOVERNMENT:
20% right to elect to exercise the right to acquire a working equity ownership interest in large scale mining project within 60 days of registration of ML application.
If ABG is not able to obtain the necessary finances to acquire the 20% within 180 days from the date of registration of the ML application, the applicant company is no longer obliged to make available equity ownership interest for ABG