Be fair, give free equity to Porgera LOs: Mangape

Tailings waste from the mine flows through the Porgera Valley in Papua New Guinea’s remote Enga Province. Photo: Emily Allen

Tailings waste from the mine flows through the Porgera Valley . Photo: Emily Allen

Jeffrey Elapa | Post Courier | August 30,2016

LAIGAP-Porgera MP Nixon Mangape said if the Government can award free equity for the OK Tedi and Paguna mine then can it also do the same to Porgera landowners.

Mr Managape said the Porgera gold mine in Enga Province has sustained the national economy after the Paguna gold mine was forced shut in 1989 and contributes 16 per cent of the GDP during the past 25 years.

He said in recognition of the contribution to the economy, can the government also give free equity from the Porgera gold mine to the Porgera landowners to be fair.

He said the landowners had to pay for the 3 per cent equity stake in the mine and was not given freely like the Ok Tedi mine and the Paguna mine landowners.

He also asked if the Government can reimburse the K50 million used to buy the 3 per cent equity in the mine as the other 2 per cent is compulsory free carry equity in the project for the landowners.

Prime Minister Peter O’Neill said all other mines around the country is different from the arrangement of the Ok Tedi mine landowners that was given 33 per cent and the 17.4 per cent to the Paguna copper mine landowners.

Mr O’Neill said the two mines are 100 per cent nationally owned and is different from other existing mine around the country.

He said the issues of the other mines around the country will be looked at in the new Mining Act review that is now ready to be tabled in Parliament.

1 Comment

Filed under Financial returns, Papua New Guinea

One response to “Be fair, give free equity to Porgera LOs: Mangape

  1. Sponge Bob

    Hard to put the Genie back into the bottle now!

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