Tag Archives: Peter Ipitas

Barrick calls for collaboration with MPs on ‘grim challenges’

Post Courier | October 10, 2017

In the face of a number of grimchallenges, the Porgera Joint Venture (PJV) mining operator Barrick Niugini Limited (BNL) has now called for greater cooperation from Engan members of parliament towards the achievement of the provinces’ development agenda.
At a recent briefing session with Engan leaders in Port Moresby, BNL executive managing director, Richmond Fenn highlighted a number of challenges that were impeding the progress of the provincial development agenda, which included; illegal mining, the state of the highlands highway, law and order, resettlement and the Memorandum of Agreement (MOA) review.
Mr Fenn highlighted the management issues of the Porgera Development Authority (PDA), the Paiam Hospital and functions of the District Administration.
He also raised issues faced by the mine such as the proposed amendments to the Mining Act; the proposed amendment to the MRA Act and increasing the Tax Credit Scheme(TCS) rate.
“While some of the issues we can manage as a company, others are more complex and need considerable amounts of commitment from the government to make it work,” said Mr Fenn.
“The partnerships that we generate from these kinds of gatherings where we are required to work together on issues that affect us all, are of the utmost importance to us,’’ he said.
Engan governor Sir Peter Ipatas supported the call, adding that as a non-renewable venture, sufficient collaborative action needed to be taken to secure the future of Enga.
“We have to work to sustain Porgera to continue to provide services. The mine will come to an end.
In the future, the province will have to fall on its own economy,” said Sir Peter said.
“We have the right leadership and we have to incorporate our plans for development into the government agenda,” he said.
Sir Peter said the national government should consider funding arrangements for Enga’s special project plans, particularly through an increase in the TCS rate.
Given the mines history and contributions to the national economy for over 20 years.

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Sir Ipatas commended for call to probe Porgera mine

porgeraburns

Jeffrey Elapa | Post Courier | October 10, 2016

THE executives of the Porgera Mt Kare Young Generation Association have commended Enga Governor Sir Peter Ipatas for calling for an investigation into the operation of the Porgera Development Authority.

PMKYGA Inc chairman Jonah Puli Kipu and public officer Philip Mungalo have supported the call by Sir Peter to investigate the PDA which has operated for the past 25 years but has failed in delivering services to the people. They say the call by Sir Ipatas and Chief Aliape was in the best interest of the little people.

They said it was amusing that the chairman and board apologised to Sir Peter when he made the call, they should be ashamed and apologise to the people for denying them their rights to basic services to improve their lives.

Mr Kipu and Mr Mungalo said the landowners have been suppressed, marginalised and misrepresented by both PDA and PLA. And that there was evidence of gross mismanagement of special support grants, royalties and equities since 1990 as funds had not been acquitted for accountability and transparency purposes.

“It is inappropriate for PDA to solicit or threaten the National Government for funding. PDA and PLA must publish in the media and inform the National Government and the people of Porgera the status of all projects they have implemented and promoted at the community level over the years,” Mr Kipu said.

“As per the Porgera MOA of May 12, 1989, PDA was tasked to implement the Porgera to Tari road project. The people have patiently waited over 25 years for the construction of a road linking Porgera and Tari. Consecutive funding by the National Government on this project is like filling an endless pit.

“The threats of riot, damage of properties and closure of operations are unwarranted.

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MP unhappy with sale of mine’s shares to Chinese

zijin barrick

The National aka The Loggers Times

ENGA Governor Peter Ipatas is concerned about a Chinese company buying into the Porgera gold mine.

He told Parliament yesterday that the Chinese company had bought 49.5 per cent of the Porgera mine, which was a very important asset for the country.

“The landowners have taken issue with the State and Barrick (operator) over the last few years over environment damage as well as other issues,” Ipatas said.

“We are reliably informed that this company in China does not have an impressive record.

“It’s reported that 22 people were killed and more than 500 houses destroyed as a result of the collapse of a tailings dam in China.

“Is the Government going to do anything about it in terms of trying to establish whether these companies are credible, and will be operating within the laws of this country?”

Mining Minister Byron Chan said he met with Barrick representatives yesterday who informed him of the takeover of 50 per cent of their shares by the Chinese company.

He said the credibility of the company was assessed by Barrick and was a transaction not related to Government.

“Barrick Gold has sold off 50 per cent of its shares in the Porgera joint venture,” Chan said.

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Billions Lost Due to Weak Mining Policies

Solomon Times

Papua New Guinea has been losing billions of kina in mineral resources due to lack of strong policies and capacity to properly monitor and regulate the industry.

Enga Governor and host to the world class Porgera Gold Mine, Peter Ipatas in his keynote address to stakeholders during the Mineral Policy and Legislation Division’s regional consultation program in Mt Hagen yesterday said developers were exploiting the mineral sector without any good benefits going back to the country and its people.

He said there was a serious lack of policy direction in the sector, which consequently resulted in a serious lack of socio-economic development.

“The general public’s perception is that the country’s mineral resources are being exploited unjustly without fair reward and compensation to the local communities and landowners on whose land these resources are located. The government’s mining policy is being driven by Industry and Investor interests rather than

PNG’s interest resulting in the ‘’theft’’ of our mineral resources,” Ipatas said.

Singling out Enga’s experience with Porgera Gold mine, Ipatas said though the mine extracted 17.88 million ounces of gold, earning a total of K19.58billion (US$8.36 billion) during the project life from 1990 to 2012, his province still lacked a proper hospital, jail, and good infrastructure.

“During that time, the Enga Provincial Government received about K204million (US$86.9 million) in Royalties, Special Support Grants and IDP. This is about 1 percent of the total earnings of the mine. About K52 million (US$22.16 million) is SSG are still outstanding to the Enga Provincial Government.

“The Porgera landowners, on the other hand have received about K410million (US$174.7 million) as compensation, royalties, SSGs, and other areas. This amounts to about 2 percent of the total earnings of the mine,” Ipatas said.

He said it was important to question whether the total of 3 percent of the earnings was equitable distribution to the landowners and the Enga Provincial Government.

Porgera was estimated to mine 8.98million ounces of gold with a total earning of K3.143 billion (US$1.3 billion) during the period of mine life from 1990 to 2012, but it produced and earned more than six times than the estimates and its life extended to 2023.

Ipatas said despite mine expansion beyond the original development plans and estimates, there was no review of the Porgera mine’s MDC or MoAs to reflect the change from the original development plan.

Vice Minister for Mining Wera Mori said any policy changes that would come after the consultation programs around the region would be done in the interest of the country.

Mt Hagen hosts the highlands regions leg of the Department’s regional forums for the review of mineral policy and legislation and development of new mining sector policies.

The mamose forum will be held in Lae on Friday, then the New Guinea Islands forum is on next Monday and Southern region in Port Moresby on Friday next week.

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Ipatas: Review Mining Act

Elias Lari

ENGA Governor Peter Ipatas has called for a review of the Mining Act and mineral policy to ensure fair and equitable distribution of benefits to resource owners.

He said resource owners were not benefiting because of unjust exploitation of their minerals.

The current mining policy was being driven by the industry and did not benefit local resource owners, Ipatas said during the Highlands regional mineral policy and legislative reviews and sector policy development forum in Mt Hagen yesterday.

He added the Government did not have the capacity to properly monitor and regulate the mining industry, resulting in the ongoing disputes between the state, project developers, provincial governments and landowners.

“There is a serious lack of policy direction to cover many new issues arising in the industry, leading to ongoing issues and disputes that require government intervention and direction,” Ipatas said.

“The lack of visible socio-economic development and public infrastructure investments in resource provinces leading to perception, that the resources development projects are promoting local economic activity and sustainable development and earning of mineral exploitation may have been squandered.”

The governor said in the case of Enga, the Porgera gold mine was commissioned at the time of the Bougainville crisis.

He said the mine had brought substantial revenue for the developer, Porgera Joint Venture (PJV), and made available much development resources to the national, provincial and the local communities for more than 12% of PNG’s gross domestic products (GDP) for the last 20 years.

“The Porgera mine was issued a 30 year Special Mining Lease (SML) and was expected to wound up in 2008 with actual closing in 2012,” he said.

“However, the mine life has been extended until 2023 with further explorations yielding good results with consequence that mine would extend.”

Ipatas said PJV in 1989 estimated that it would mine 8.98 million ounces of gold, earning K3.143 billion during the mine life.

“Of the large earnings, the distribution of benefits has not really been equitable for the Enga provincial government and Porgera landowners,” he said.

“From 1990 to 2012, the provincial government received about K204 million in royalties, special support grants (SSG) and so and this is about 1% of the total earning.”

He said apart from that about K52 million in SSG to the provincial government was still outstanding.

Ipatas said from 1990 – 2012 the provincial government has received K204 million in royalties, SSG and others, since 1990 which is only a 2% of the total earning.

“What I’m asking now is can a 3% of earning be distributed among the provincial government and the landowners,” he said.

Ipatas said this clearly showed that landowners and the state did not get much benefit from the minerals and resources extracted from the soil.

“The government needs to ensure that there is an equitable sharing of benefits of the exploitation of the mineral resources,” Ipatas said.

He said the role of the government in regulating the distribution of mineral wealth derived from their development was very important in any mineral policy framework.

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