Govt hopes to bring great benefits with projects: PM

PRIME Minister James Marape says the Government hopes to build similar frameworks of achieving greater benefits for the country through its resource projects.
He said this in Port Moresby last Friday after the signing of the framework agreement with Barrick to reopen the Porgera mine in Enga.
PNG stakeholders (Kumul Minerals Holdings Ltd, Enga provincial government and landowners) own 51 per cent of the mine.
“This announcement is a significant milestone in the Government’s effort to build strong frameworks within the resource sector which will benchmark future considerations for similar projects around the country,” Marape said.
He said in the old structure, State parties only had five per cent through Mineral Resources Enga (2.5 per cent Enga government and 2.5 per cent landowners), while 95 per cent was held between Barrick Niugini Ltd (47.5 per cent and 47.5 per cent Zijin).
Under the new deal, the equity split is 51 per cent and 49 per cent in favour of PNG stakeholders.
Marape said there was an opportunity for landowners to increase their equity beyond 15 per cent with the additional 10 per cent free equity paid for by Barrick.
The royalty paid was two per cent to the special mining lease landowners and the Enga government but the new deal secured an additional one per cent to make it three per cent.
“Up to 2019, the economic split stood at around 25 per cent for the PNG stakeholders with equity and taxes, whereas the new deal will see that move to around 53 per cent in favour of the PNG stakeholders over the life of the mine,” he said.
“The new arrangement does not give away and tax concessions which means that the State is able to collect its taxes upfront.”