Association to get 10% of royalties

 A DECISION has been made last week to transfer the 10% royalties from the Ok Tedi Mine to the Mount Fubilan Resource Owners Association (MFRA).

The Fly River Provincial Government (FRPG) and the association reached a compromise on the transfer of 10% royalties from the provincial government to the association.

The two parties have in past been negotiating this transfer.

But they have not been able to reach an agreement on the issue until last week’s review of the Ok Tedi Mining Project memorandum of agreement (MoA) in Kokopo, East New Britain.

The agreement provides for the provincial government and MFRA to receive 50% each in royalties from the Ok Tedi Mine.

However, the MFRA sometime back proposed that FRPG gave 10% of its 50% to them through the Star Mountains Local Level Government.

Last week, the two groups who are parties to the agreement, resolved that the apportionment of royalties between themselves will remain at 50% each.

However the association, through the local level government, would give K2 million from its annual general budget to MFRA every year, to sustain the operations of the MFRA.

It was further resolved that 10% of the K2 million will go to the LLG while 90% would go to the association.

Executive officer Toby Yakumani said the MFRA was happy with the resolution reached on the issue of royalties and the funding support by the Fly River provincial government.

Acting provincial administrator Ronald Manaseh Domnai said the administration would ensure that the K2 million be catered for in the province’s next year budget allocation.

The parties to the MoA which include the State, the Fly River provincial government, MFRA and SMLLG resolved to establish the Star Mountains Special Purpose Authority (SPA).