Category Archives: Mining

NEC approves 5yr extension for registration of land groups

 
October 20, 2017 
Source: The National
 
 
THE National Executive Council (NEC) has approved a five-year extension for the registration of Integrated Land Groups(ILGs).
 
Lands and Physical Planning Minister Justin Tkatchenko told The National that it would be welcomed by the business community, especially in the agriculture sector, resources sectors and industries.
 
The extension is expected to give time to landowners to clearly identify their land.
 
The deadline lapsed in February.
 
“NEC has approved for the five-year extension for the ILGs to be identified and certified as requested by the industry and business houses, especially the New Britain Oil Palm, Mineral Resources Development Corporation, Oil Search and the big companies that deal with landowners in their developments and activities,” he said.
 
“Whether it’s agriculture, mining or development, whatever the area is, the ILGs can now be properly and correctly identified.”
 
Tkatchenko said a lot of ILGs had still not been clearly identified when the deadline lapsed eight months ago.
 
“Customary landowners and ownership of this ILGs have not been properly identified,” he said.
 
“So there was a request for the business side of things and for our big corporate companies that deal with customary land and landowners in our country.”
 
Tkatchenko said it was part of the 100-day plan that Treasurer and Deputy Prime Minister Charles Abel had put forward.
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Proposed policy to declare revenue

Source: Loop PNG

9th October 2017.

 

The Department of Mineral Policy and Geohazards Management (DMPGH) says it is working to introduce a policy for stakeholders in the mining industry to declare any revenue received or made from mining projects.

 

Secretary Harry Kore told Loop PNG that the policy idea came about during consultations for the Revised Mining Act.

 

He said while there are reports of mining revenue generated, a lot of locals impacted by mining activities claim to not see any tangible results.

 

Kore said the policy will ensure stakeholders such as provincial governments, authorities such as the Mineral Resources Authority (MRA), Mineral Resources Development Cooperation (MRDC), as well as landowner association chairmen and landowner company CEOs declare revenue received for the benefit of all.

 

“You fail to do that and you will be held accountable and you will be penalised under the law. So it becomes a practise. Every quarter they just declare their interest. We know that so much money goes to our landowners but whether it trickles down to the peoples is another thing,” said Kore.

 

The policy idea is similar to a draft legislation currently being drawn up by the PNG Extractive Industry Transparency Initiative to make mandatory all revenue from the mineral, petroleum and gas sectors to be fully disclosed as per good governance standards.

 

Kore said they are yet to have formal discussions regarding the policy idea however, there is cooperation and the policy complements that of the work the EITI is undertaking.

 

Secretary Kore added that one of the agendas of the policy is to ensure there is sustainability in how revenue is invested back in the country.

Panguna work to cost K18.8 billion

Source: The National

CONSTRUCTION of the Panguna mine is estimated to cost US$4-6 billion (K12.5- K18.8 billion).

 
Bougainville Copper Ltd (BCL) secretary Mark Hitchcock said significant tax revenue would be generated in the estimated 25-plus years’ mine life, with operations starting around 2025-26.

 
Hitchcock spoke during the Autonomous Bougainville Government’s (ABG) three-day tax and revenue summit in Buka last week aimed at finding ways to improve the financial outlook for the region and the government’s ability to fund services for its people.

 
Hitchcock was invited to present development of a new Panguna mining project, including its potential revenue and broader economic benefits.

 
Once developed, the mine would generate significant tax revenue over the 25-plus years operational life of the project.

 
The presentation was drawn from an order of magnitude study which was updated late last year.

 
A realistic timeline for the Panguna project will see the mine operational around 2025-26, Hitchcock said, and the potential tax revenue gains had to be viewed as a longer term prospect with no short-term, direct tax generation, although the project’s development and construction period would present income generation opportunities.

 
Hitchcock highlighted the need for certainty in relation to the tax regime that would apply to the project and warned that excessive tax imposts would undermine its viability. “One potential pathway is for the ABG and PNG national government to work towards a joint agreement to provide assurances regarding applicable taxes that would apply over the longterm,” Hitchcock said.

 
In addition to tax revenue, he said the Panguna project would have a wider multiplier effect in terms of economic benefit.

 
“A project of this scale will help stimulate the economy in a multitude of ways in areas such as training and employment, new business opportunities in the supply of goods and services and the provision of new infrastructure to name a few,” he said.

 
Hitchcock congratulated the ABG for holding the tax and revenue summit and said BCL welcomed opportunities to contribute to important policy discussions in Bougainville.

PNG Needs Better System For Landowner Benefits

BY MICHAEL ARNOLD

As one of the largest Liquefied Natural Gas (LNG) operators and in the country, Oil Search Limited has raised grave concerns of the need for a better system to manage landowner benefits.

Oil Search managing director, Peter Botten, said at a press conference yesterday that landowner benefits, including royalties and development levies for those within the PNG LNG project area had been accruing since 2014 and to date amounted to over a billion dollars.

Mr Botten said that some of the equity revenues were already flowing in to the Mineral Resources Development Company (MRDC) Limited and Kumul Petroleum Holdings Limited (KPHL).

However, he stressed that there needed to be a better system of benefit management and disbursement to ensure that landowners were getting their fair share.

 

http://postcourier.com.pg/png-needs-better-system-landowner-benefits/

 

Mine Production To Increase

 

 

BY FRANKIY KAPIN

The K92 mine in Eastern highlands is looking to produce in the order of 50, 000 ounces (oz) of gold together with a few thousand tons of copper annually once into full operations starting next year.

 
Chief executive officer and director of K92 Mining Incorporation, John Lewins made this known yesterday.

 
When asked about the annual revenue generation of the mine and local landowners beneficiaries once operations of the mine is underway, Mr Lewins said 60 per cent of the mine employees come from the local landowner groups.

 
“We employ 500 people and 60 per cent of those are local landowners,” said Mr Lewins.
He said wages going into the local community is in the order of K7-8 million.

 
“Business opportunities, we still working through with the local communities,” he said.
Mr Lewins said as the mine progresses, business opportunities will gain in access of up to K2 million profit going into the community, which is still not the total value of the contract will be higher.

 
He said the developer is looking at doubling production by the end of 2018, and doubles opportunities.

 
Mr Lewins said the approach is something the developer has to work through with the community and as well is part of the MOA.

 
MRA K92 mine project coordinator, James Norum said with the country’s Mining Act review, a concern by stakeholders is pending completion conducted by Department of Mineral Policy and Geohazards.

Newcrest Appoints First Papua New Guinean to Oversee Lihir Mine Operations

Newcrest has announced the appointment of the first Papua New Guinean to oversee operations at its Lihir Mine in New Ireland Province.

Iso Ealedona, a career mining engineer, with more than 20 years’ experience both locally and abroad, has been appointed Mine Manager for Lihir.

Ealedona started his career as a Mining Engineer with Placer Niugini at its Misima mine before moving to Lihir Gold with the Lihir Management Company under the Rio Tinto group in 1996.

He was appointed as the first and youngest Papua New Guinean Operations Superintendent during the early years of Lihir.

Ealedona’s experience includes senior planning and leadership roles with Ok Tedi Mining, Morobe Mining Joint Venture and Misima Mines.

According to Newcrest’s Mining Executive General Manager Lihir and Cadia, Craig Jetson, Newcrest is confident that Lihir will continue to deliver outstanding results under Ealedona’s leadership, given his vast experience.

State To Meet With Kainantu Landowners

By ROSALYN ALBANIEL

A state team is expected to meet with the landowners from Kainantu this Wednesday in Goroka to discuss solutions to the petition by the landowners of Bilimoia.
The team will be led by the Mineral Resources Authority (MRA) managing director Philip Samar.

In a press conference yesterday Mr Samar said there were six points that had been raised by the landowner leaders in the petition dated August 21, 2017.
They include:
– The awarding of contracts for catering, security services and trucking to be awarded to the landowners;
– Employment and training for local Bilimoians;
– Commencement of Memorandum of Agreement (MOA) review;
– Landowner association office to be established in Kumian and Kainantu;
– Support funds for the landowners;
– Water coloration payment;
– Outstanding compensation payment and contract engagement right fees.
Mr Samar said the landowners had done the right thing in as far has raising their issues through a petition.

However, what had been disappointing was that the other parties had the right to reply to the demands but were not given the opportunity to do so.
Instead the disgruntled landowners had opted to take the law into their own hands, causing substantial destruction and damage.
He said a meeting had been called on August 30, 2017 at the Lae International Hotel which was attended by all concerned parties.

In attendance had been the Mining Minister Johnston Tuke and BLA chairman Neneti Tesai and his executives and the K92’s chief executive officer John Lewins.
One of the major outcomes had been the developer inspite of the situation, agreeing to award the three major business contracts for catering, security and trucking to the landowners on a 50:50 joint venture basis.

He said the landowner had not signed off on the resolutions that had been passed requesting they be allowed an audience with their people before this is done.
He said the meeting had been held but he had further requested to meet with landowners again to explain the content of the resolutions.

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