NEC okays revised deal for Tolukuma mine

Tolukuma

Press Release | PNG Loop

The National Executive Council has approved the revised Memorandum of Agreement on the Tolukuma Gold Mine along with the outcomes of its negotiations.

Prime Minister Peter O’Neill said the Tolukuma agreement will be reviewed every five years.

The Tolukuma Gold Mine is in the Goilala District of Central Province and can only be accessed by helicopter.

The revised deal relating to the Tolukuma Gold Mining pProject was signed in 2007 between the State, Central Provincial Government, Woitape Local Level Government, Tolukuma Gold Mine Limited and the Yulai Landowners Association.

“The current MoA review began in October, 2012, and was completed in December 2013 and has been agreed upon by all the stakeholders, whereby the royalty rate will be applied at two per cent.

“Cabinet has further directed the Department of Personnel Management to assist in establishing the Tolukuma Infrastructure Development Committee (IDC) and an office as the vehicle of the projects under the Central provincial government structure,” Prime Minister O’Neill said.

He said Cabinet also deliberated on the outstanding National Government commitment of constructing the Tolukuma Highway, which is part of the National Building and Road Network Program, and directed relevant agencies to provide funding and start work immediately.

“Part of the agreement also comprises of the company’s Business Development Plan and its three-year employment and training plan,” Mr O’Neill said.

He said Cabinet approved the projects to be funded under various national government programs during the lifetime of the project.

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Filed under Financial returns, Papua New Guinea

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