K92 mine issue resolved, says Samar

Business

MINERAL Resources Authority managing director Philip Samar says eight issues in a petition presented by landowners at the K92 mine in Eastern Highlands have been resolved.
This followed the damage done to the mine late last month by angry landowners.
Samar said the resolutions were reached at a meeting between Mining Minister Johnson Tuke, K92 mine chief executive John Lewins, Bilimoia Interim Landowner Association chairman Neneti Tesai and his executives, and Samar in Lae last week.
The association presented the petition to the company on Aug 21. The issues were:

  • That major business contracts for catering, security services and trucking to be awarded to landowners;
  • Employment and training for Bilimoians;
  • The landowner association office to be established in Kumian and Kainantu; and,
  • The association support funds, water coloration payment, outstanding compensation payment, contract engagement right fees, agreement review to be commenced.

Samar said K92 Mining Ltd had agreed that the three major business contacts for catering, security and trucking with Bilimoia landowners to be on a 50:50 joint-venture partnership.
“The landowners wanted the security contract to be given to a particular company that operates in Lae and some parts of the country. So they already had a contractor in mind. Similarly, they came to the table with a preferred contractor for the catering service. Likewise, a preferred contactor on the trucking service. They shut the mine because they were not given those contracts,” Samar said.
“I had to balance the outcome of the negotiation in such a way that, not only to the firm and the government, but more importantly,
fairness in that process for their own people.”

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