Association pushing to increase royalty rate to 8 per cent

Business

THE Mt Fubilan Resource Association in Western wants to see an increase in the mining products royalty rate for the Ok Tedi Mine landowners, says chairman Joshua David.
He said the current 2 per cent rate was one of the lowest in the world.
The association wants it increased to 8 per cent.
David said the association would work with the Fly River provincial government to pursue the increase.
“The current mining products royalty rate of 2 per cent is the lowest in the world, and it has been the same for many years,” David said.
“The state must (push it) to 8 per cent.
“The provincial government and landowners must pursue this change.”
He said the current 50/50 split should be changed – 75 per cent to the landowners and 25 per cent to the Fly River provincial government.
“Landowners are to decide on the on the split of their portion – whether to maintain the current arrangement or to make changes,” he said.
“We are saying this because of the undertakings. They are getting 50 per cent and in terms of supporting the landowners through projects and Government services, nothing.
“That’s why this is our position.”

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