Tag Archives: New Ireland

K660m in royalties from Lihir

“Sounds a lot, huh? But average it out – over 20 years that averages to K33m per year. And what about total revenues from the mine? Over 20 years total revenues have been K33 BILLION, or an average of K1.65 billion per year.

“Countries around the world get 8%, 12%, even ( in Canadian provinces) 18% royalties. What do we get? 2%!

“Lot of money coming out of the ground. And it is all going overseas. All we will be left with is a big hole (just look at Misima).” Bruce Harris

Loop PNG | March 20, 2018

The people of New Ireland have received K660 million in total royalties from the Lihir Gold Limited (LGL) since 1997.

Of the total royalty payments made between 1997 and December 2017 (K660m);

  • New Ireland Provincial Government (+ districts) had received K330,057,253
  • Nimamar Local Level Government had received K198,034,351
  • Special Mining Lease Block Owners had received K132,022,902

From January to December 2017, Lihir Gold Limited royalty payments to the people of New Ireland have added to a total of K75,065,077 as highlighted (in yellow) in the table below.

What are royalties?

The PNG Mining Act defines royalties as payments by a mining company to the State based on 2 percent of the value of all gold sold.

The Mining Act further states that it is up to the State to decide how it wants to redistribute the royalties.

For the Lihir operation, the State, in a Memorandum of Agreement (MOA) – signed with NIPG, NLLG and the Lihir Mining Area Landowner Association (LMALA) – agreed that the National Government shall ensure that all royalties be distributed in the following way;

  • 50 percent be paid to NIPG
  • 30 percent be paid to NLLG
  • 20 percent be paid directly to the SML block owners.

The MOA further states that the 50 percent portion for the NIPG be divided as:

  • 20 percent to the Namatanai District for infrastructure projects and programs pursuant to its district and provincial development plans. (Lihir comes under the jurisdiction of the Nimamar Local Level Government in the Namatanai district.)
  • 20 percent to the Kavieng District for infrastructure projects and programs pursuant to its districts and provincial development plans.
  • 10 percent for general administration as well as for the administration of the MOA obligations.

The MOA allocation of royalties for infrastructure projects and programs in both Namatanai and Kavieng fulfils Recital C of the MDC’s Social Impact Monitoring Plan for the Lihir operation. It therefore makes Lihir a business that is benefitting the whole of New Ireland Province.

For the 30 percent NLLG portion of total royalties, the MOA states that it be split further in the following way:

  • 20 percent to be spent on community development and programs
  • 10 percent to be spent on long term growth-driven investments

For the 20 percent royalty portion for SML block owners, an arrangement was made between the SML block executives and LMALA for Newcrest Lihir to deduct 20 percent and pay it directly to LMALA to put in a financial savings scheme for the landowners. The remaining 80 percent is paid to the SML block executive to distribute to the SML block owners.

In a statement, the mining rm said: “LGL as a corporate citizen and development partner for New Ireland and PNG honours the MOA and other agreements and complies with all laws of PNG.

“LGL pays royalties every month and reports to the Mineral Resource Authority (MRA), the Internal Revenue Commission and other stakeholder government agencies.”

Newcrest Mining Limited, owner of LGL, is a publically [sic] listed company on the PNG and Australian stock exchanges. As such it is required to regularly report its financial performance through various communications channels, including its website http://www.newcrest.com.au.

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New Irelanders satisfied with seabed mining campaign

Nautilus the Protector – Solwara Em Laif

Loop PNG | January 25, 2018

Landowners from New Ireland Province are pleased with the result of the campaign against experimental seabed mining.

They noted the overwhelming support from the national, regional and international organisations, including from prominent leaders.

Following the recent resignation of Nautilus chairman Russel Debney and Nautilus vice president PNG Adam Wright, Jonathan Mesulam of the Alliance of Solwara Warriors said:

“We are pleased with the recent turn of events and would like to acknowledge the support given by the European Union Parliament, United Nations and reputable leaders who have come out publicly and called to ban experimental seabed mining.”

Mesulam also acknowledges the support by prominent leaders such as Sir Arnold Amet, Cardinal Sir John Ribat and international naturalist Sir David Attenborough, who have come out strongly against experimental seabed mining.

Whilst acknowledging the support by different organisations at their levels, Mesulam challenges the three local MPs; Sir Julius Chan (Governor), Ian Ling-Stuckey (Kavieng Open) and Walter Schnaubelt (Namatanai), to come out publicly and make their stance clear.

He further said the locals will continue to advocate on experimental seabed mining and will make sure “Nautilus leaves our shores”. 

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Chan reaffirms stance against Solwara 1 project

Jemimah Sukbat | Loop PNG | December 24, 2017

The views of Governor Sir Julius Chan and the New Ireland Provincial Government have not changed, they have always been against the experimental seabed mining.

This was reaffirmed by NIPG after Loop PNG published an article questioning the governor’s stance.

In response, Loop PNG was told that the provincial government has been demanding that an independent environmental impact study be conducted and the findings be made known to NIPG.

“It will be worthwhile to note that the decision for Nautilus minerals to mine undersea had been made by the national government and as it is under the Mining Act, everything in the earth, in and above the sea belongs to the State,” clarified the government.

“Sir J recognises this and is working on amendments to the act, so mama and papa graun can be fully recognised as owners of these minerals.

“The amendments have gone before Parliament as a private member’s bill.”

NIPG further said as Nautilus is doing business in New Ireland waters using the road and land as access to its ships, etc, they have demanded that Nautilus give back to the community in projects, which it is doing on the west coast.

“Nautilus had so far shown good corporate responsibility but this is not enough to convince NIPG that seabed mining is safe.”

Meanwhile, non-governmental organisations have been advised to visit Sir Julius’ Kavieng office and dialogue with their government.

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Locals file case to stop seabed mining

Jemimah Sukbat | Loop PNG | December 8, 2017

The Solwara Alliance has filed a case against the government at the Waigani National Court to stop the operation of seabed mining in West Coast New Ireland.

Filed on Thursday afternoon, the Alliance wants the Government to make public all necessary and relevant documents under seabed mining agreement, who is involved in approving the project and on what grounds and why the government is still pursuing the project.

Jonathan Mesulam, a West Coast New Irelander and a member of the Solwara Alliance, says the people in the village are strongly against seabed mining because their livelihood will be affected by the project. They want the Government to ban the project.

“No one knows the environmental impacts of this project. There is also no independent environmental studies so why is the government pushing for this project?

“There will be negative impacts in the local and national economy, especially the fisheries sector,” says Mesulam, who is currently in Port Moresby to file the case.

“Solwara 1 is not a good investment, it will only last for three years.”

They want the developer, Nautilus Minerals Limited, to pack up and leave by next year.

When asked if the villagers were consulted before the agreement was signed, Mesulam said the developer never consulted the locals.

“This MOA was signed by a few people who only think about themselves.”

From the footages taken from the villages along West Coast New Ireland, the people say they own both the land and sea and the mining will greatly affect their lifestyle, especially in shark-calling.

Mesulam said New Ireland does not need a seabed mine. They already have fish, cocoa, coconut and other resources where they can depend on for economic benefits.

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Villagers oppose Solwara 1 project

Concerns have been raised on how seabed mining would affect marine life/resources of the Bismarck Sea

Jemimah Sukbat | Loop PNG | December 4, 2017

West Coast New Ireland villagers near the Solwara 1 project strongly oppose the Nautilus Minerals Limited operation.

John Merebo, a Messi villager, revealed to Loop PNG that West Coast New Irelanders were never part of the agreement when it was signed.

The seabed mining agreement was signed in 2012 by the then Mining Minister and Namatanai MP Byron Chan, the New Ireland Provincial Government and National Government.

He said they do not want the development of the project to go on because they do not see any benefits in it.

“There is not a lot of economic activity out of the project because everything will be done by the company off shore.”

But since the government has already signed for the project, Merebo said they want to be part of the negotiating team in the next part of the operation. This is to discuss spin-off benefits.

Meanwhile, during a recent conference, UPNG Professor Chalapan Kaluwin said seabed mining would be disastrous for New Ireland Province.

Professor Kaluwin stated the project could be catastrophic for our waters given the fact that PNG has 20 percent of the world’s tuna; it also has the world’s warmest waters and fastest currents.

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Namatanai MP Schnaubelt queries Lihir Royalties

NBC News/PNG Today 

Namatanai MP Walter Schnaubelt has tasked the New Ireland Provincial Government to explain the whereabouts of his district’s share of mine royalties, as per an Agreement with the Lihir Gold Mine.

He says since the start of the mine’s operations in 2007, his District has not received its 20 per cent share of the funds.

Mr Schnaubelt told NBC Radio the New Ireland Government must furnish expenditure reports of the payments.

“The concern now is the 50% portion blong New Ireland Provincial Government which is responsible to dispatch 20% to Namatanai district and 20% to Kavieng district na 10 percent is retained by the provincial government blo administration purposes.

“Orait, the provincial government component paid to date is K264m and you know since 2007 i kam nao, Namatanai district and Kavieng district have missed out on their 20% share.”

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New Britain to be excluded from Solwara 1 benefit sharing

Coastal communities in East New Britain will be just as heavily impacted as any in New Ireland by the proposed Solwara 1 Experimental Seabed Mine, but the government is excluding the Province from any benefits sharing…

Coastal Area Benefit for offshore mining projects
Cedric Patjole | PNG Loop | October 3, 2017

The Department of Mineral Policy and Geohazards Management has created the concept of Coastal Area Benefit as the benefit sharing agreement instrument for offshore mining projects.

Department of Mineral Policy and Geohazards Management Secretary, Harry Kore, says the concept was developed out of sentimental attachment locals have with the sea as a resource for their livelihood.

The CAB concept will be first implemented across several wards adjacent to the Solwara 1 Deep Sea Mine Project in New Ireland Province.

Secretary Kore said the CAB, as per its structure, is implemented with a ward that is directly opposite the offshore project.

However, the CAB can be extended to three more wards on both sides of the first ward, bringing in a maximum of seven wards as allowed under the Offshore Policy.

“The seven wards is the maximum, if there is only two or if there’s only one then those are the only wards that benefit. But if there is more than that is as far as we can go.”

The Coastal Area Benefit concept will be first introduced in seven wards along the West Coast of New Ireland Province.

They cover 22 villages and a population of over 8,000 people.

While the CAB for the New Irelanders is yet to be finalised, Secretary Kore says the concept aims to capture the locals’ attachment to the sea.

“Customarily we own the sea as well, but it’s communally owned by everybody in a particular area. And people have right of way to pass through your area for fishing or for customary activities out at sea, like shark callers.”

The offshore policy is one of the new policy developments contained in the revised Mining Act, which is yet to be endorsed by the National Executive Council.

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