Firm: Over K4bil given in tax

The National Business

THE Porgera mine in Enga has contributed more than K4 billion in tax and exercise revenue to the Government since it began, according to Barrick Niugini Ltd.
The mine operator said more than K368 million had also been paid to the Government in taxes and excise arising from the mine’s 2019 operations alone.
“The Porgera mine has been one of the largest corporate taxpayers in Papua New Guinea,” a company statement said.
“Over the life of the mine, approximately 48 per cent of all economic benefits arising from the operation of the mine have flowed to Papua New Guinea in the form of taxes, royalties, equity revenue, contracts and capital expenditure, and employment for thousands of Papua New Guinean workers.”
The Government refused to extend the special mining licence for the mine which expired last year.
The company is challenging the decision in court.
It said the Enga government received more than K335 million in royalty benefits from the mine since mining began in 1990, much of which was paid to the Ipatas Foundation at the request of the provincial government.
“Since July 1996, royalties have been paid by the mine at a rate of 2 per cent of the value of sales, less selling expenses,” it said.
“Prior to July 1996, the royalty rate was 1.25 per cent of the value of sales.
“When the mine first started producing gold, the provincial government received 77 per cent of these royalties.
“Since July 1995, the provincial government has received a 50 per cent share of the royalties paid by the mine.”
However, the company noted that as a result of the current present situation, royalty payments and equity revenue for the Enga government have ceased.

19 comments

  • Barrick, K4 billion in 24 years is too small. do not boast. do the honarable thing by allowing the people to participate fairly this time.

  • Receiving 4 billion kina by the government of PNG over the tenure of the mine is one side of the coin but how much has BNL received over the same period? Try to be fair to the host in terms of the landowners and the government. A win/win solution is better. The government should focus more on agriculture, tourism, fisheries and downstream processing to manage our economy. Develop the mines only with genuine developers, give enough thought to developing them and do not rush into signing agreements.

  • oh Barrick it seems you are so desperate. You had lump while we had crumps driblets.

  • You had lumps while we had driblets. You think our mind is too small to think K4billion is a huge money?

    • Br Luke, fully support you. BNL cannot fight on to cling to what does not belong to you. Papua New Guinea is a sovereign nation and the country’s legitimate government has made a final decision for BNL to leave. Just pack up and leave, please.

  • Barick, you have reaped the people of Enga and PNG enough please packup and leave.

  • K4 billion & BNL thinks that’s big ah! Think again, PNG deserves k400 billion. PMJM stand firm, PNG is right behind you. Send them away

  • All my beloved brothers who commented on this issue, I totally agree with you because 4 billion is not enough for the resources owners of this country. Don’t think that you did the right thing. Please pack up and leave.

  • Can BNL publish how much profit he made over the last 30 years? We are tired of seeing one sided reports. No body is stupid not to read his implications. ENOUGH IS ENOUGH.. NATURE HAS CAUGHT UP WITH YOU (BNL).

  • Data shows that PJV has never been truthful about its tax liability and the reported K4 billion is not not true because by 2012, the total tax payment was K2.8 billion (1990-2012). This includes salary and wages taxes of employees and contractors. The corporate income tax was just K1.8 billion by 2012. In the last 8 years to 2019, Treasury and IRC reports shows the combined taxes paid by all the mines was less than K600 million and that is reflected in the 2020 National Budget document. The royalties and CIT are under-paid since Porgera has been the richest gold mine outside south South Africa. The total taxes and royalties could have exceeded K20 billion in the last 30 years of mine operation when gold prices have increased from US$400/Oz to US$1200/Oz to presently over US$1700/Oz. Government is also responsible for inefficient tax systems and Barrick is not the only to blame. The GoPNG must have effficient tax system as well as tax administration and collecting technology to maximise the tax revenues. Half truth and half lies from both sides.

  • Land of the unexpected is fruitful now!!! You won’t expect the unexpected so be it the PNG way.
    NEC, Enga Governor, Land Owners stand firm in your decision and get rid of BNL.
    K4 Billion in 30 years goes to infrastructure like road…etc,,,etc towards Mine site at Pogera to benefit the mine operations.
    I pray that they won’t continue.

  • BNL had understood PNG Culture and Enga traditions down to earth 100% and that is what NEC’ failure to
    take into considerations. The point is just give it another chance to BNL for a change with fare share to all stake holders involved. People of Enga and PNG have SUFFERED already. Inasmuch as Gov’t efforts to push BNL out, it will NEVER be a win-win outcome cos BNL has and will ALWAYS be an ENGAN.

    • You may be the only Papua New Guinean shareholder of BNL. Tok stret!

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