Papua New Guinea’s government has moved to effectively take over the Porgera gold mine in Enga Province by issuing a Special Mining Lease to state-owned mining company, Kumul Minerals Holdings. Legal challenges look likely.
A Special Mining Lease was issued to Kumul Minerals Holdings on 25 August.
On 25 August, a 20-year special mining lease was issued to Kumul Minerals Holdings Limited (KMHL) for the area covered by the Porgera mine in Enga Province.
The move follows the government’s decision in April not to renew the previous lease over the mine, which was with Barrick Niugini and Zijin Mining, known as the Porgera Joint Venture.
The joint venture partners are in the process appealing the previous decision, and have taken the matter both to PNG’s National Court and the International Centre for Settlement of Investment Disputes. The government had previously rejected a revised proposal which would have allowed the previous lease to be renewed.
Unlawful and invalid?
‘If you really care about landowners and contractors and PNG as you claim then reply to it and get on a plane and come to PNG.’
Justification
Credit: Prime Minister James Marape/Facebook
In a statement defending the government’s move, Prime Minister James Marape said the new lease had been issued by the Mineral Resources Authority.
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The resources have been over exploited, social welfare of PNG and its citizens have not been taken good care of by BNL. The worse ever thing is,a 5% equity share to LOs and PNG National government (2.5% and 2.5% ) while BNL exports at larger scale and being World’s second largest gold mine.
Marape Government’s negotiation on Porgera is right as what exactly other countries around the globe could do to protect its national interests and its resources.
We’re not back in 1600s and 1700s where you could offer a bundle of salt and walk away with a bag full of precious metals!!!
PNG is the land of expect the unexpected.Who’s interest is this move? is it for the betterment of PNG economy? or KMHL? When the economy is hard hit with porgera not contributing for the last 4 months FOREX into country!! it may continue if landowners disputes continue in the wild west. PNG is the land of expect the unexpected.
Thanks PNG government for the decision knocking off BNL of operations. No need for extended court battles by BNL, just pack-up and go to China and Canada. Social Indicators are really not improving as a result of the minings that are running. It is now the governments responsibility to set out things in a way that it benefits our citizens and we see at least some of our social indicators are improving.
Porgera LOs should stay put without swaying to any of the two factions, whether be BNL or KMHL. Moreover the understanding is that giant Porgera mining is operated in the land of the independent state of PNG thus any formalities done by the government of PNG has no objection after BNL terms of operation expired. Therefore why should LOs make noise on the issue in regard? Are they (LOs) PNGan or another investor on the race to squeeze the pie of Gold?..
Land owners where missed out on the negotiation, were their inputs into benefit sharing, spin of business, development benefits and employment opportunities has no clear focus. This things should be tabulated and presented to government and government should facilitate and negotiate with BNL and KMHL and see who can meet the criteria before issuing lease agreement. It’s for the good benefit sharing and going for highest bid so outcome can be fully maximise withing the province and country so the development outcome can be tangible for the next 20 years.
I Think this may be good move, however … Let’s wait to see d future