With community outrage over revelations about the true size and value of the Ramu nickel deposit still simmering, figures released by the Lihir gold mine in New Ireland province, Papua New Guinea, which delivered a US$500 million profit in 2009, reveal the extent to which other mining companies are profiting from their extraction operations.
The Lihir gold mine produced a record 853,000 ounces of gold in 2009 – boosting Lihir Group Ltd’s global production to over one million ounces for the first time (LGL also mines gold in Queensland, Australia and in Cote d’Ivoire in Africa, although the Lihir mine accounts for some 75% of total gold production).
The Lihir mine is also one of the lowest cost mines in the world, according to the company. Total cash costs of the Lihir groups mining operations in 2009 were US$397 per ounce.
With the gold selling price averaging at US$1,000 per ounce during 2009, the company figures reveal that the mine was delivering a profit of over US$600 per ounce of gold produced – over US$500 million in total.
A profit of over US$500 million in one year from one mine – yet the company pays no taxes in Papua New Guinea.
Perhaps it is no surprise that PNG is ranked as one of the poorest and least developed nations in the world – despite its enormous natural resources which include oil, gas, copper, timber and tuna as well as gold, silver and nickel – when it allows overseas companies to quite literally steal its gold .
The Ramu Nickel operation which is owned and operated by the Chinese will dwarf the Lihir gold mining operation in its size but all the signs are that it will be an even bigger financial disaster for Papua New Guinea.
Whoever, in the previous GOVERNMENTS and the current government, especially departmental heads and minsters who negotiated and signed those deals with Lihir, Ramu Nico and NapaNapa Interoil developments were plainly STUPID. The Solicitor Generals who advised those in power were all cretins to say the least. There is also ONE punishment fitting for this crime and that is public hanging for all who signed away our natural resources for a pittance. Landowner groups are also very stupid in NOT understanding what is written in those many MOA/MOU ‘s that they have put pen to for their benefits and for the betterment of PNG. My opinion is for us as a people to take all of these issues up to the International Human Rights Commision, Geneva International Courts and the UN for consideration and retraction of ALL signed deals and get these companies out of PNG. The right person who can do this for us is NCD Governor, the Honorable Powes Parkop, MP LLB LLM.
Parkop certainly can if he stops following those lunatics in NA and listening to their bullshits.
I was in the crowd and listening to his independence speech at the Sir John Guise stadium last year and was horrified to hear him calling on the boofheads in the spirit house up the hill to give Michael Somare a chance to serve out his full term as PM. This was after he sided with the opposition during the suppressed motion to move a vote of no confidence on the Grand Thief.
Parkop knew very well that the guy is corrupt and his government too is corrupt and incompetent. So what was he trying to say in his speech? Powes is slowly but surely letting the ‘binatang nogut’ eating into him and will become another rotten apple soon.
I wish to fund if money comes my way, NGO groups to terrorise these companies if our voices cannot be heard…gut full hate on those PNG officials inclding Government