Five Lihirians apply for loans

Business, Normal

The National, Wednesday July 17th, 2013


FIVE members of the Lihir Mining Area Landowner Association (LMALA) have applied for loans under a K40 million lending facility for new businesses, LMALA chief financial officer John Melvin says.

This was made possible by a deal signed between LMALA and the Kina Group of Companies last month.

Melvin said from Lihir, New Ireland yesterday the association has launched the K40 million Lihir business leverage system on the island on Monday. 

The Kina Finance Ltd will facilitate loans to the Lihirians while Kina Funds Management (KFML) will invest LMALA’s funds to grow the wealth of the Lihirians. 

It is hoped that the leverage system will enable Lihirians to take advantage of both mine-related and non-mine related business opportunities. 

LMALA executive chairman Peter Suar earlier told The National: The decision to sign the loan and investment agreement with Kina would allow landowners to participate in any business activities on the island. 

“The decision to invest is driven from the LMALA plan, to mobilise landowner funds from royalties, compensation and others.”

Melvin said the facility received approval from the 32 executives and 500 financial members of the association at a general meeting.