Business arm seen as a burden to Morobe govt

By GLORIA BAUAI
MOROBE Alluvial Mining Ltd (MAML) has been a financial burden to the provincial government since its establishment in 2021, provincial mines chairman Waka Daimon says.
MAML is a subsidiary of the provincial government’s business arm established by the provincial executive committee (PEC) through decision 07/2021.
The company was the brainchild of then governor Ginson Saonu which was granted four exploration licences and three mining leases with the aim to mine and complement the development of a gold refinery in the province.
Daimon said to date, the company had only accrued costs and liabilities totalling up to K21 million and had no record of revenue or any declared gold deposits.
It was reported that MAML was set up at a total cost of K20 million and allocated K5 million annually.
“So MPG was funding it but no return turnover since so we had to temporarily stop operations for a while,” he said.
“An initial capital is to start you off and you need to care for yourself and the operations like pay your workers.
“We visited the site to see that work had progressed since its establishment but there has been nothing to show for.
“We still have many former staff coming to the office, asking the provincial government to pay out their outstanding fees.”
Daimon said the Morobe government’s mine division and its business arm would screen all claims and its workforce as well as the use of funds by management before a decision was made.
Daimon confirmed that machinery under MAML on mine sites at Sandy Creek and Maus Kaindi in Wau and Widupose in Bulolo were brought back to Lae to remain under the custody of the business arm.
A PEC decision 52/2022 under Governor Luther Wenge revoked the establishment of all businesses by the previous administration, including MAML.
MAML lease holder Peter Seske presented a report claiming a total of K21 million in liabilities since the decision to nullify the business.